A company formation agent in Colombia will provide you with expert advice and specialist support to incorporate your company in the shortest time possible, while guaranteeing full compliance with local norms and regulations. As such, many investors seek to engaging the services of a company formation agent in order to mitigate risks and maximize the chances of achieving their business goals when starting a business in Colombia.
For investors planning a more limited-scale or shorter-term operation, another popular market entry option is to hire local staff through an EOR in Colombia, also known as a Professional Employer Organization (PEO) or Employer of Record (EOR), which will recruit, hire and manage personnel on your behalf, avoiding the need to form a company in Colombia.
Colombia has the fourth-largest economy in Latin America and the Caribbean by gross domestic product (GDP), which stood at $323.6 billion (all figures in USD) in 2019. It is also one of the most prosperous countries in the region, with a gross national income (GNI) of $6,510 per capita that same year — a figure that places it as an upper-middle income country by international standards.
Colombia has a highly strategic geopolitical position, given its status as a key regional partner of the United States and its location between major economies in North America and elsewhere in South America. It also maintains a business and investment-friendly ecosystem has seen it emerge as one of the top destinations in the region for foreign direct investment (FDI), which reached $14.3 billion in 2019.
Colombia has gone to lengths to position itself as an investment destination and promote global trade, reaching free trade agreements (FTAs) with more than 60 countries in the Americas and Europe alone. It is also a founder member of the Pacific Alliance, a regional economic association that includes Chile, Mexico, and Peru, and has ambitions to expand into Asia and the South Pacific. The country’s import/export sector is supported by major ports offering access to both the Pacific and Atlantic Oceans, while capital city Bogotá’s El Dorado Airport boasts the largest cargo capacity in Latin America.
Colombia’s principal export commodities include petroleum, coffee, precious minerals, and cut flowers, with top export destinations including Brazil, China, Ecuador, Panama, and the United States.
If you are looking to launch in the Colombian market, read on to understand more about the advantages of working with a company formation agent in Colombia. Or go ahead and reach out to us now to discuss your expansion options.
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How will a company formation agent in Colombia support you?
An experienced company formation agent in Colombia will have extensive knowledge of the local business environment, as well as all aspects of the process of company incorporation, and will help you navigate the country’s legal and tax system with efficiency.
Your company formation agent in Colombia will be able to provide ongoing support and advice related to labor and corporate regulations, and will help you complete and submit all required documents before public entities, overcoming potential difficulties commonly encountered during the process of company formation in Colombia.
Note that a company formation agent can also offer advice and help you with other essential but time-consuming responsibilities related to the company incorporation process, such as setting up a corporate bank account.
Main benefits of working with a company formation agent
Some of the main benefits of working with a well-regarded company formation agent in Colombia include:
Specialist legal advice: A company formation agent will know the ins and outs of the country’s corporate regulations and will instruct you on how to set up your business in the fastest way, while advising you on which entity type best suits your needs and goals.
Time-saving: A company formation agent will take care of complex and time-consuming activities, such as filling out forms, or drafting and legalizing documents. In this way, you will have more time to focus on other tasks that require your attention.
Legal representation: A company formation agent is trained to represent you and your company before public regulatory entities, protecting your commercial interests and preserving the good reputation of your business.
Bilingual support: The official language of Colombia is Spanish, and the process to form a company in the country will be carried out entirely in that language. Almost all experienced company formation agents will speak a good level of English. This will allow you to obtain high-quality translations of the forms that you may need to create your business in Colombia.
6 key steps to form a company in Colombia
You will need to complete the following six steps to establish your company in Colombia
- Draft and sign a power of attorney (POA): Your legal representative must draft and sign a POA — a legal document that will allow them to represent your interests and sign legal documents on your behalf.
- Create the company bylaws: The company bylaws will describe your business objectives and strategy. Note that these statutes must be legalized before a Colombian notary public.
- Register the company: A legal representative must register your company with the Colombian Chamber of Commerce.
- Obtain a tax identification number: Request and obtain your taxpayer identification number before the National Tax and Customs Directorate (DIAN).
- Open a corporate bank account: Your legal representative must take care of all the necessary procedures to open a corporate bank account in Colombia.
- Start operations: Once all the above steps are completed, your company can begin operations.
Biz latin Hub can be your company formation agent in Colombia
At Biz Latin Hub, our multilingual team of company formation professionals has extensive experience supporting foreign executives starting a business in Colombia. With our complete portfolio of corporate legal, recruitment, and tax advisory services, we can be your single point of contact to ensure the success of your commercial operations Colombia, as well as any of the other 15 countries across Latin America and the Caribbean where we operate.
Reach out to us now for personalized assistance or a free quote.
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