Opening a SAS corporation in Colombia is an incredibly attractive option for investors looking at entering Latin America. Its gross domestic product (GDP) stood at $314 billion (all figures in USD) in 2021, growing annually by 11%. In 2021, the gross national income (GNI) is $6,100 per capita — making it an upper-middle income country by international standards.
Colombia is geographically situated between North and South America, which positions it as a strategic location for investment. Furthermore, Colombia’s close partnership with the United States, a major economic power, has facilitated the growth of its economy and the attraction of foreign investment.
As a result of these factors, Colombia has become a leading destination for foreign direct investment (FDI) in the region. In 2021, Colombia attracted a total of $9 billion in FDI, a testament to the country’s appeal as an investment destination. It is a safe, tried, and tested economy for foreign investors and is an excellent place to incorporate a SAS, or another company type.
Colombia has strived to position itself as a top investment destination and has FTAs with more than 60 countries in the Americas and Europe. It is also a founding member of the Pacific Alliance, a regional economic association with Chile, Mexico, and Peru.
If you plan to start a business in Colombia, you have different corporate structures to choose from. This article specifically covers SAS corporations, providing information on what they are, how to create them, and their benefits.
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What Is a Colombian SAS Corporation?
In 2008, the government created the Simplified Stock Company (SAS) to simplify company formation as a new legal structure that would attract business entrepreneurs.
Due to its versatility, the decision to incorporate a SAS is smart for companies that require a certain amount of flexibility for their financial and operational viability.
Many have opted to form a SAS in Colombia since its creation, contributing to the growth and economic development of the country.
How Do You Create a SAS Corporation in Colombia?
Incorporating a SAS is a straightforward process. It’s the most commonly used corporate structure in Colombia for both local entrepreneurs and foreign investors seeking opportunities abroad.
A single person can create a SAS, and there is no maximum limit to the number of shareholders. The incorporation documents are private, and the entire process, including company formation, registering with the corresponding authorities, and opening a bank account, can be completed in just one week.
Only when assets are included as part of the capital or when ownership transfer is required does a Public Notary becomes involved. The simplified process also reduces associated transaction costs and government involvement.
The following are the steps necessary to incorporate a SAS in Colombia:
- Prepare and register the Articles of Incorporation before the Chamber of Commerce.
You will have to establish the name, purpose, shareholders, legal representative(s), and address of your company. The Chamber of Commerce will automatically register the company before the tax authorities (DIAN); unless your company is located in a city different from Bogotá. If it is in another city, you will have to personally register the company before the DIAN.
- Register the legal representative before the DIAN
After registering the company with the Chamber of Commerce, the legal representative must register with the DIAN to be recognized as such and authorized to sign taxes.
- Opening of Bank Account
The final step to get your company running is to open a bank account. After completing and signing the forms, the bank will issue an active account certificate to you.
Completing all the steps mentioned above can take between one (01) and two (02) weeks.
Benefits of Incorporating a SAS Corporation in Colombia
One of the main benefits of this type of company is that there is no personal liability. Shareholders are only personally responsible for the money they invested if there is proof of fraud.
Another one of its benefits is that the investors can apply for a Migrant type visa by fulfilling the capital requirements established by law.
More Information About Incorporating a Company in Colombia
Starting a company and getting a visa in Colombia can be difficult due to cultural differences and market complexities. At Biz Latin Hub, we can assist you in identifying the best way to enter the market and provide full commercial representation services to support your market entry strategy. Our experienced team of accountants and lawyers is committed to helping businesses in Colombian markets. Please contact us now to receive comprehensive advice about doing business in Colombia.
Watch our video below to find out why Colombia is a good destination for your investment!
The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.