The most common types of business structures in Colombia

Simplified AG (SAS), Limited Liability Company (LTD) and Public Limited Company (SA).

Simplified AG (SAS) - This type is very popular with entrepreneurs who want their company to be 100% foreign-owned. To set up this type of company, only one director and one shareholder (individual or entity) are required, of any nationality, whether they are resident in the country or not.

Limited liability company (Ltda)----? A limited liability company requires 2 shareholders (individuals or legal entities) and 2 directors of any nationality (resident or not resident in Colombia).

Public limited company (SA) - can be formed and established by 5 shareholders (individuals or legal entities) and appoint 6 directors (directors can be of any nationality and do not reside in Colombia) Can).

Branch ----To open a branch, you need to appoint a Colombian permanent resident as the legal representative, any nationality is acceptable.

Representative Office?----?This type of structure is not considered a legal entity in that country's jurisdiction and can only carry out the promotional and marketing activities of its head office within Colombia.

No matter what organizational form a company is established, it must be registered with the Chamber of Commerce in the city where the company is located. In practice, most Chinese companies that go to Colombia to develop business register at the Bogota Chamber of Commerce.

The main procedures for registering a company in Colombia

(1) Search the name of the company to be established through the chamber of commerce database to avoid duplicate names.

(2) Determine the business scope of the proposed enterprise through the chamber of commerce database. The business scope number adopts the United Nations International Unified Industrial Classification code.

(3) Consult the city government’s Land Planning Department database on the urban land for the proposed enterprise through the Chamber of Commerce link. Generally, companies planning to rent an office can skip this step directly.

(4) Apply online to the General Administration of Taxation and Customs for unique tax registration (RUT) through the Chamber of Commerce link. The General Administration of Taxation and Customs will instruct the applicant to print the form directly and apply for registration with the Chamber of Commerce based on the online form filling, or require the applicant to conduct an interview.

(5) Draft company establishment documents. Companies with assets not exceeding 500 monthly minimum wages or employing less than 10 people can draft company establishment documents on their own; companies with assets greater than 500 monthly minimum wages or employing more than 10 people should draft company establishment documents at a notary office.

(6) Fill in and submit the business license form online through the chamber of commerce database.

(7) If the company’s planned business scope involves other relevant departments, it should go through relevant registration procedures in other departments.

(8) Submit the above documents to any chamber of commerce office.

(9) Pay the registration fee. Relevant fees can be found on the Chamber of Commerce website.

(10) Complete registration. At that time, the Chamber of Commerce will hand over the company's legal establishment certificate and the tax registration number (NIT) issued by the State Administration of Taxation and Customs to the applicant.