How to Form a Company in Colombia
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 a company formation presentation for Colombia. We are confident it will help! If you have any more questions about how to incorporate your company in Colombia, reach out to our friendly local team.
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