Register Company in Colombia

Colombia Company Registration with Block3 Finance

Registering a company in Colombia presents a unique opportunity for entrepreneurs looking to establish a presence in a dynamic and growing market. Strategically located in the heart of South America, Colombia offers easy access to regional and international markets. The country’s expanding economy, innovation-driven sectors, and competitive labor market make it a prime destination for foreign investment.

At Block3 Finance, we provide a seamless company registration experience, allowing you to focus on growing your business while we take care of all the regulatory and administrative steps. Our goal is to ensure your Colombian company is fully operational within the agreed timeframe.

Our services for Colombia Company Registration include

Company registration with the Chamber of Commerce

Corporate bank account opening

Legal representative services

Nominee director and shareholder services

Business license and trade permits acquisition

Registered local address

International trademark registration

Advantages of Registering a Company in Colombia

Strategic Geographical Position: Colombia’s central location in South America provides easy access to both the Atlantic and Pacific Oceans, making it an ideal gateway for international trade and regional market expansion.

Economic Growth: Colombia’s economy has been growing consistently, with foreign direct investment (FDI) reaching approximately US$17.05 billion in 2022. This positive trend creates a favorable environment for new businesses to thrive.

Tax Incentives: The Colombian government offers several tax incentives, including exemptions and reductions for companies in free trade zones or involved in R&D activities. The corporate tax rate is set at 35%, but deductions can significantly lower the effective rate.

Free Trade Zones: Colombia has established free trade zones offering significant tax and customs benefits, reducing the regulatory burden on international business operations.

Access to Finance: Colombia supports entrepreneurs with various initiatives promoting access to credit and funding, especially for start-ups, increasing the sustainability of business operations.

Regulatory Reforms: Recent regulatory reforms have simplified the process of company registration and enhanced transparency, making it easier for foreign investors to navigate Colombia's business landscape.

Competent Labor Force: The country’s young, skilled workforce offers competitive labor costs, making it an attractive option for companies looking to drive innovation and reduce operational costs.

Investor Confidence: Colombia ranks well in investor protection, creating a stable business environment that is conducive to long-term success.

Time Required for Colombia Company Registration

At Block3 Finance, we aim to complete your company registration in Colombia within 8 weeks. Here’s the typical timeline:

Company Name Reservation: We check the availability of your chosen company name and handle all registration requirements with the Colombian authorities.

Company Incorporation: Once your name is confirmed, we efficiently complete the registration process without requiring your physical presence.

Corporate Bank Account Opening: Within 4 weeks of incorporation, we help you open a corporate bank account with a reputable local or international bank.

Operational Readiness: You can expect to start operations and issue invoices with your Colombian company within 12 weeks.

Can Foreigners Register a Company in Colombia?

Yes, foreigners can fully own a business in Colombia. There are no nationality restrictions for shareholders or directors. However, a local legal representative must be appointed if the foreign investor cannot be present. For foreign investors committing at least US$500,000, it is possible to apply for an investor visa, which also grants residency in Colombia.

Types of Business Entities for Colombia Company Registration

Colombia offers a variety of business entity types. Here are the most common ones:

Limited Liability Company (SRL): This is the most popular business entity in Colombia. It limits the partners’ liability to their capital contributions and has no minimum capital requirement.

Simplified Stock Company (SAS): The most flexible and widely-used structure in Colombia, especially for SMEs. The SAS allows for one or more shareholders with no minimum capital requirement.

Corporation (SA): Suitable for larger companies with more than two shareholders. The SA has a minimum capital requirement of COP 50 million (~US$13,000).

Branch Office: A foreign company can establish a branch office in Colombia. This is treated as an extension of the parent company and requires a legal representative in Colombia.

Sole Trader (Empresario Individual): A sole proprietorship with unlimited liability, suitable for small businesses.

Steps for Colombia Company Registration

Choose the Company Structure: Our team at Block3 Finance will help you choose the ideal business structure based on your objectives.

Company Name Reservation: We check for name availability with the Colombian authorities and register it for you.

Prepare Required Documentation: We assist in preparing necessary legal documents, including the Articles of Association and shareholder agreements.

Identify Company Officers: We will ensure that all directors and shareholders are in compliance with local regulations.

Company Registration: We submit the required documents to the Colombian Chamber of Commerce for official incorporation.

Tax Registration: After registration, we help you obtain a National Tax Identification Number (NIT) from the National Tax and Customs Directorate (DIAN).

Obtain Permits and Licenses: We assist with obtaining any necessary trade permits and business licenses from local authorities.

Corporate Bank Account Opening: We facilitate the opening of a corporate bank account with a reputable bank.

Documents Required for Company Registration in Colombia

Passports and ID copies of directors, shareholders, and UBOs.

Drafted bylaws and the company’s operational framework.

Preliminary NIT application form.

Proof of the company’s registered address in Colombia.

Shareholder agreement and declaration of UBO status.

Certificate of good standing for corporate shareholders.

Accounting and Tax Obligations in Colombia

Accounting Obligations Companies in Colombia must comply with International Financial Reporting Standards (IFRS) and maintain proper accounting records in Spanish and Colombian pesos. The following documents must be maintained:

Purchase and sales books

General ledger

Financial statements

Tax Obligations Corporate Income Tax (CIT): The standard rate is 35%, with reduced rates available for companies in free trade zones or engaged in specific activities.

Value Added Tax (VAT): The standard VAT rate is 19%, though some goods and services may be exempt or subject to reduced rates.

Withholding Taxes: Withholding tax rates apply to certain types of payments made to individuals and entities.

Why Register a Company in Colombia?

Political: Colombia offers a stable regulatory framework and favorable conditions for foreign investors.

Economic: A growing economy with strong GDP growth and access to regional markets.

Social: Colombia has a dynamic and skilled workforce with competitive labor costs.

Technological: The country is embracing digital transformation, with a growing tech ecosystem.

Legal: The business registration process is smooth, with clear requirements for foreign investment.

Environmental: Colombia is increasingly prioritizing sustainability and eco-friendly business practices.

Contact Block3 Finance for Colombia Company Registration

If you’re looking to set up a company in Colombia, Block3 Finance is here to help. We offer expert guidance on the registration process, ensuring you comply with all local regulations while taking full advantage of the opportunities available in this dynamic market.

Colombia