There are three legal structures for you to choose from for your company in Colombia. They are as follows:
- Limited Liability company
- Joint-stock company
- Simplified stock company
However, in this article, we will be discussing the registration process specific towards incorporating a limited liability company in Colombia.
Steps towards registering a limited liability company in Columbia
Do note, before you begin the registration process, ensure you have met these prior requirements.
Step 1- Settling prior requirements
- Choosing an appropriate name for your company. This name must be unique, with no resemblance to pre-existing names of companies.
- Classify your economic activities. Colombia uses a code system for this, known as the CIIU. You will be tasked to use two codes; one for main economic activities and one for a secondary activity type.
- Clearly state the legal structure of your company
- Draw up a constitution. This will have to be notarized.
- Hire a power of attorney. This is because Colombian law states that all documents must be signed by a legal personality.
- You will need to appoint at least one director and one shareholder
- Finally, you will need to clearly state the amount of money you will be declaring as an investment. This is important as you will be asked to pay 0.7% of the stipulated amount as a registration fee.
Step 2- Chamber of Commerce
Once you have compiled all the documents above, you will need to visit a branch office of the Chamber of Commerce.
Once you are there, you will need to hand over these documents, the forms as well as clear copies of the identification documents of owners/partners/directors/shareholders and of the legal personality. The last document you need to hand over is the company constitution (notarized).
At this stage you will also be asked to pay for registration fees, which are as stated above, 0.7% of your investment capital. In addition to this, you will need to pay COP$40,000 as an extra fee.
Step 3- Pre-RUT Form
Now, you will need to fill in the Pre-RUT form. This form is essentially to make sure you get a pre-taxpayer ID number. This is used for you to be granted permission to open a business bank account.
You may download the form here.
Step 4- Opening your bank account
Once you have obtained your pre-tax id number, you may proceed to any local bank to open a bank account for your company in Colombia. You will need the following documents as well:
- Clear copy of the ID of the legal personality
- A letter of explanation regarding who will manage the bank account.
- Once you have received approval to open an account, you will be issued a certificate by the bank.
Step 5- Issuance of your NIT (Taxpayer identification number)
After you get your certificate, you will have to return to the tax office (DIAN office) to file for your official taxpayer id number. This needs to be accompanied by a clear copy of the identity document of your legal personality. Then, you will be issued your NIT. Your legal personality will also be issued one.
Step 6- Returning to the chamber of commerce
The final step to the rather convoluted process. You will now have to return to the chamber of commerce with your NIT. Once you present it to them, you will be issued with your certificate of incorporation.
Frequently Asked Questions
How much will this process company registration cost in Colombia?
The registration fee for this process is 0.7% of your investment capital. You will also need to pay COP$40,000 as an extra fee.
How long will it take to incorporate my company in Colombia?
This process will take around 16-18 weeks to complete, as you will have to go through several departments.
How much do I need for a minimum investment?
There is no exact amount involve, meaning you will have to set your own amount.
What law does Colombia follow?
Colombia follows the civil law system.
How many directors/shareholders do I need?
You will need to appoint a minimum of at least one for each.
What is the address for the chamber of commerce in Colombia?
Bogotá Chamber of Commerce
Av. El Dorado ##68d-35, Bogotá, Cundinamarca, Colombia
Phone: +57 1 5941000
More Facts about Colombia:
Colombia, formally known as the Republic of Colombia is a transcontinental country. Located in between South and North America, this country is extremely diverse. With roots in Spanish colonization, Columbia declared its independence in the early 19th century. As such, mush of its history, arts and culture can be traced to Spanish origins.
In terms of economy, Colombia is currently doing quite well for itself. In fact, a census conducted in 2014 placed it as one of the world’s fastest growing economies, coming in second to China. The fourth richest of the Latin American countries, Colombia has a GDP valued at $333.114 billion, giving it a rank of number 37 out of 186 countries. This puts its nominal GDP per capita value at $6,684. A lot of Columbia’s wealth can be attributed to their petroleum industry, which contributes largely to their export revenue value of $39.48 billion. Another massive contributor to its wealth is its tourism industry. Which is estimated to reach a value of 15 million tourists annually by 2023.
Moreover, Colombia has a human development index of 0.747, indicating it has a high standard of living. Furthermore, Colombia’s ease of doing business rank is 65 out of 186. This states that as a country, it is “easy” to do business with Colombia. In addition to this, Columbia has a low rate of unemployment at only 9.1%.
The currency used in Colombia is the Colombian peso. Although Spanish is the official language in Colombia, English is also widely used. In both government and everyday use. Therefore, communication will not pose a problem when conducting business in Colombia. The main export industries in Colombia are the following:
- Petroleum (crude, as well as coal briquettes)
- Coffee beans
- Plastic and plastic products.