Explore your options to get an entity health check in Colombia for your own business, or an existing company you may be planning to buy. A complex system of regulations, laws and licenses could be a factor not to buy an existing company without ensuring its status first. Additionally, you may not be aware of the full compliance picture of your company in Colombia. An entity health check can help with this.
It is essential to understand any potential corporate non-compliance or concerns for your business operations when acquiring your business in Colombia. In order to take the biggest advantage of these succeeding markets whilst keeping on the correct side of administrative consistency, an entity health check is a key assurance check.
What is an entity health check?
Entity health checks, also called corporate due diligence reports, are reviews carried out by financial and legal auditors. Employing an external provider that is specialized in entity health check provides commercial reassurance. Prospective business owners may authorize the provider to examine the legal, financial and accounting records of a company.
The reason for checking the legal and fiscal states of an organization is to identify whether there are any non-compliance problems that the investors should take into account before buying an existing company. In a minefield of legal and accountancy regulations, it is simple for organizations to oversee or simply ignore compliance regulations.
Why should I get an entity health check?
Entity health checks done by experts save you time because local external auditors are able to obtain information quickly. When buying an existing company, health checks in Colombia will make it possible to verify that the selling party has the legal title to sell ownership of all assets and that regulatory and litigation matters are fully covered. You can verify that there are no hidden financial problems and gain a more complete vision of the business’ legal status in the eyes of government authorities.
Entity health check types
There are two main types of entity health checks. They typically focus on either the fiscal or legal condition of the company.
The legal health check focuses on reviews of commercial contracts, employment contracts, industry-specific regulations, and intellectual property protection. The industry your business operates within is also an important element for auditors to consider when conducting a legal entity health check in Colombia. Particular industries carry additional and strict regulations that businesses must comply with; it’s important to know that your business is adhering to any additional industry-specific regulations.
A fiscal entity health check will ensure that your accounts, social security payments, and taxes are consistent with regulations and give you information that will be valuable for your future choices and strategies.
Engage with trusted local auditors
To get the assurance you need from your entity health check in Colombia, contact an external services provider with a trusted background and depth of knowledge of Colombian.
Local expertise can guarantee greater familiarity with Colombian corporate and other regulations. Experienced entity check auditors can provide a comprehensive review for foreign multinational companies operating in Colombia. As a foreign multinational company, you may also seek a bilingual services provider who can manage language barriers between yourselves and local authorities.
Contact us to get your entity health check in Colombia
Biz Latin Hub specializes in a full range of business solutions for foreign companies in Colombia and the wider Latin American region. Our team of accounting and legal experts in Colombia are have comprehensive experience in conducting regular entity health checks for companies unfamiliar with local compliance legislation. Partner now with Biz Latin Hub’s legal and accounting specialists in Colombia to ensure your company can be fully compliant with the Colombian regulations.
Contact us today here for a consultation.
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