Esteban Rada
Colombian attorney
email: info@lawyerscolombia.com
telephone 57-311-7693976
In recent years we have seen how many US citizens are now opening business or stores in Colombia. Despite some countries are very friendly to open and run a business, Colombia, on the opposite, is difficult and involves a lot of paperwork to create a business.
Here are some notes.
Business Formation
The first step in starting a business in Colombia is to choose the legal structure for your business. Foreigners have the option to either form a new legal entity or establish a branch of their existing company in Colombia. The most common legal structures for businesses in Colombia are the Sociedad Acciones simplificadas (SAS) and the Sociedad de Responsabilidad Limitada (LTDA).
The process of forming a legal entity in Colombia involves several steps, including:
Registering the company with the Chamber of Commerce
Obtaining a Tax Identification Number (NIT) from the Colombian tax authorities
Registering with the National Registry of Legal Entities (RUES)
Obtaining any necessary permits, licenses, and registrations depending on the type of business and industry.
The entire process of business formation can take several weeks or even months, and it is advisable to seek the assistance of an experienced lawyer to ensure a correct and efficient formation of your business.
Corporate Legislation and international procedure for a Colombian business.
This is the core and guide instructions for the corporation or business in Colombia. Once your business is formed, it is essential to comply with certain legal requirements related to corporate governance in Colombia. This includes holding annual shareholder meetings and maintaining accurate accounting and financial records. Failure to comply with these requirements can lead to fines and other penalties.
In some cases, superintendencia de sociedades, an agency like the US SEC, can take control of the business or even creditors can ask the court to proceed with a full control of the business.
Conclusion
If you are thinking of opening a business in Colombia, contact us to get further information and let us guide you during the legal proceedings.
Esteban Rada
Colombian attorney
email: info@lawyerscolombia.com
telephone 57-311-7693976
