How to Register Your Business in Colombia

An essential step for foreign investors hoping to succeed in Colombia’s diverse, growing economy is registering a business, as all investments—no matter the kind—must be registered at the country’s Central Bank.

Here’s how to register your business in Colombia correctly, you can start taking advantage of a wealth of economic opportunities.

What type of company will you register?

There are two primary routes to setting up a company in Colombia. You can start a company within the country or create a Colombian branch of a foreign entity, which means extending an existing operation into Colombia.

The processes differ for either path. If you intend to set up a company within the country, you’ll need to acquire a work visa before taking further steps. You’ll also need to decide what type of company you plan to open. Options include a Limited Liability Company (S.R.L), a Public Limited Company (S.A), and a Simplified Joint Stock Company (S.A.S).

But you can set up a branch of a foreign company in Colombia at a distance and without acquiring a visa by performing the correct registration steps with the help of a representative on-site in the country.

Setting up a company in Colombia

If you plan to start an S.R.L, S.A or S.A.S in Colombia the process is as follows:

  1. Choose a company name and ensure it’s available by looking it up in the national registry, known as the Registro Único Empresarial (RUES).
  2. Create your bylaws and a public deed representing them with the help of a notary public. If you’re starting a Simplified Joint Stock Company, the bylaws can be an internal document instead of a public one.
  3. Register your company with the Chamber of Commerce. The Chamber will provide a provisional tax ID that allows you to open a bank account.
  4. Open a business bank account.
  5. Assign a legal representative for the company.
  6. Complete your tax registration (RUT, the Spanish abbreviation for unique taxpayer registry) with the National Tax and Customs Administration (DIAN), which will provide you with a unique taxpayer identification, known as a NIT ID. Provide the Chamber of Commerce with your NIT ID. The Chamber will provide a certificate of existence for your business.

Setting up a foreign branch in Colombia

Before setting up a foreign branch of your company in Colombia, it’s essential that you learn what types of activities are permitted in this schema. Colombia allows foreign investors to hold commercial offices and establishments, work as contractors, manage and invest private funds, and participate in extraction, among a few other options. Be sure to research the most current regulations on the nature of permitted foreign investments ahead of time.

If your business intervention aligns with the country’s guidelines, you can set up your foreign branch using the following steps.

1. Gather documentation

You’ll need to present the following documentation in the second step of the business registration process (acquiring a public deed), so have it readily available before taking further steps to avoid frustration and lost time.

  • The company’s certificate of incorporation and registered agent. (Individuals will need to show a passport, instead).
  • The company bylaws.
  • The power of representation that permits an individual or lawyer to act on the company’s behalf.
  • An act authorizing the opening of the parent company’s Colombian branch. This document must include:
    • The name and nature of the business
    • The company address
    • The branch’s capital amount
    • The duration of the company
    • The grounds that might force the business’s closure
    • The name of the registered agent and a description of their powers
    • The name of the statutory auditor

2. Get a public deed

Have the company’s registered agent sign a public deed (on-site in Colombia) in the presence of a notary. Be sure to familiarize yourself with notarial fees before the signing.

3. Gather job acceptance letters

Anyone that the company’s bylaws state will work for or on behalf of the company must present an acceptance letter detailing their participation. At minimum, the letter should include the person’s full name, a reference to their official identification (and the ID number), a description of the position, and their signature.

4. Obtain a NIT

RUT is an acronym for Registro Único Tributario, which translates to “unique taxpayer registry.” Obtain a RUT number, which, in turn, allows you to get the unique tax ID number (NIT) all business entities need to operate.

The RUT procedure must be done through the National Tax and Customs Administration (DIAN). You can personally obtain your business’s NIT number or have a legal representative of the company do so.

5. Register with the Chamber of Commerce

Once you have your RUT and NIT numbers, you must register them with the Chamber of Commerce. You’ll need to provide the Chamber with your deed of incorporation and acceptance letters, too.

You also need to register your accounting books. Prepare to provide a general ledger and your accounting journal.

6. Open a bank account

Any foreign branch in Colombia must have a local bank account in its name to operate legally. Having a Colombian account not only gives you a place to hold investing capital but also easily and safely make transactions in Colombian currency with local entities. This account will streamline any future payroll processes and allow you to securely move funds that sustain your operation.

It’s important to note that before proceeding to the final step in the business set-up process (registering with the Central Bank of Colombia), you must have liquid investment capital in this newly-opened account.

7. Complete registration with the Central Bank

Register the capital in your bank account with the Central Bank of Colombia. You’ll need to do this at the start of your operation and at any time in the future your capital increases.

You’re just steps away from investing in Colombia

Colombia offers investors a unique opportunity to be at the forefront of the energy sector and tap into a young, motivated workforce making waves in IT, tourism, real estate, and more.

And getting started is simple. Familiarizing yourself with local investing regulations and processes like registering a business puts you on the path to success. Getting expert help from LaGrande Global can help you go even further.

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