Colombia is a country of many opportunities but setting up a company formation can be a challenge for those who are unfamiliar with the local process.
There are a number of company types available to suit every business type and need, but the most popular is a SAS company, which is a “Simplified Stock Corporation”. Establishing this type of company in Colombia is relatively simple, fast and well suited to most business needs. Whereby only one person is needed to register the company, albeit a legal representative must be appointed that is either a Colombian national or a foreigner with an appropriate visa. This type of company allows free operation, with no currency controls or restrictions. Also with a SAS company, shareholders are only liable personally if there has been proof of fraud, as such there is no personal liability for corporate actions, including labor disputes, tax issues or other litigations that might arise with company operation.
The process to establish a SAS normally takes between two to three weeks (plus a further week to open a company bank account) but is also dependant on the complexity of the company, the availability of relevant personal documents and that of the founding owners. With a SAS, the founder members may also be eligible to apply for a visa in Colombia, allowing them to stay in Colombia whilst their businesses are operating, assuming that they make a sufficient investment aligning to a minimum of 100 times the legal minimum Colombian Salary (as at the time of writing, equating to approximately USD$21,000). A SAS company in most cases is the best commercial vehicle for business operations in Colombia, offering maximum flexibility, limited personal liability and a way to secure a visa to stay in Colombia.
You can have a look at our PowerPoint’s on Bizlatinhub which will guide you through the process.
If you want further information about this company type and its process, don’t hesitate to contact Craig here. Our team is willing to solve all your doubts and assist you in the constitution of your company and the setup of your business.