Colombia has proven itself to be one of the more promising countries to do business in Latin America. The country demonstrates several economic strengths. Increasing flows of foreign direct investment into the country are supporting a flourishing business environment and is pushing Colombia to spearhead significant economic opportunities.
Although Colombia's market is enticing, it can nevertheless be challenging to do business in a country where one does not fully understand the regulations and laws to form a company there.
In Colombia, we recommend incorporating the Simplified Share Company (S.A.S.) for most clients. This is similar to the LLC in the US. This type of legal entity can be formed with 1 shareholder, an individual or a legal entity who can be either local or foreign. While the S.A.S. has no minimum share capital requirement, we recommend beginning with an initial share capital of approximately USD$400. Our team can incorporate the SAS on your behalf without the need for you to physically visit Colombia, through a Power of Attorney ('POA').
Colombian commercial law is clear, and there's plenty of support on standby from local institutions that want to see new businesses succeed. To carry out commercial operations in Colombia, foreign investors do not need a local partner or investor. The entire equity of a corporate entity can be foreign-owned and there few restrictions to subsequent repatriation of profits overseas. There are several different types of companies/legal entities in Colombia and the type of company must be chosen according to the needs of the business and the legal framework which fits the business model.
In order to help you get a better insight into the steps in this process, our Colombian business experts have created the above company formation presentation for Colombia.
For more information about our company formation services in Colombia, please get in contact with our local team.
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