If you want to start a business in Colombia, there are different corporate structures available for you to choose from when forming your company and in this article we answer your questions about S.A.S. Corporations: What is an S.A.S. corporation, how do you create one and what are the benefits?
What Is a Colombian S.A.S Corporation?
The Simplified Stock Company (S.A.S. by its acronym in Spanish) was created in 2008 in order to provide a more simplified alternative to company formation and to create a new legal structure that is adapted to the needs of businesses and entrepreneurs. Due to its versatility, the S.A.S. is a good option for companies that require a certain amount of manoeuvrability for their financial and operational viability. Since its creation, the S.A.S. has been adopted by many thus contributing to the growth and economic development of the country.
How Do You Create a S.A.S. Corporation in Colombia?
Incorporating a S.A.S. is a fairly straightforward process and the requirements are simple; this is the most commonly used corporate structure in Colombia, not only for local entrepreneurs but also for foreign investors looking for opportunities in new markets.
It can be created by one person, it has no maximum limit to the number of shareholders and the incorporation documents are private. The incorporation process can take up to one (1) week including the company formation, registering it before the corresponding authorities and opening a bank account.
A Public Notary is involved only when assets are included as part of the capital and when ownership transfer is required. The simplified process also reduces associated transaction costs and government involvement.
The following are the steps necessary to incorporate a S.A.S. 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
Once the company is registered at the Chamber of Commerce, the legal representative will have to be registered before the DIAN in order to be recognised as such and to be authorised to sign taxes.
- Opening of Bank Account
The final step to get your company running is to open a bank account. Once the forms are completed and signed by the bank, you will get an active account certificate.
Completing all the steps mentioned above can take between one (01) and two (02) weeks.
Benefits of Incorporating a S.A.S. Corporation in Colombia
One of the main benefits of this type of company is that there is no personal liability. Shareholders are personally liable for the amount of money they invested only in case that there is a proven 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
There are many opportunities for starting a company in Colombia and to get a visa. It can sometimes be challenging due to the complexities of market entry and cultural differences. Biz Latin Hub is uniquely placed to help you and your business, not only identify your optimal route-to-market, but we can also support you with full commercial representation services as you implement your market entry strategy. Our mission is to facilitate and support businesses in Colombian markets with the help of our experienced team of accountants and lawyers. Please get in contact with Craig Dempsey here 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!