Colombia Law firm

The Colombian SAS (Simplified Stock Corporation) is the most popular company form, with registration taking just 1-3 business days. This can be expedited through the Chamber of Commerce's electronic system. The process includes: name search (instant), online document submission (1 day), obtaining a NIT tax number (instant), and bank account opening (3-5 days). Our Bogotá team offers a one-stop service.

Colombia is very open to foreign investment, allowing 100% foreign ownership in most sectors. Restrictions apply only to a few areas, such as defense, toxic waste disposal, and national television and broadcasting. Foreign investors enjoy national treatment and can freely remit profits. Foreign investments must be registered with the Central Bank to enjoy legal protection.

Colombia's corporate income tax rate is 31% (as of 2024), and its value-added tax rate is 19%. Preferential policies include a 20% income tax rate for businesses in free trade zones; a five-year tax stability guarantee for large-scale investment projects (MEGA-i); a seven-year tax exemption for the Orange Economy (creative industries); and special deductions for technology companies. China and Colombia do not have a bilateral tax treaty.

The minimum wage in Colombia is approximately 1.3 million pesos per month (including transportation allowance). Employers are required to contribute approximately 30% of social security contributions. Employees are entitled to 15 working days of paid annual leave, a year-end bonus (prima), and severance pay. In principle, the proportion of foreign employees may not exceed 10%, with exceptions for management. It is recommended that employment contracts be in writing to avoid disputes.

Basic requirements include annual renewal of the Commercial Registration Certificate (Matrícula Mercantil), a municipal business license, and industry-specific permits (if any). Certain industries, such as finance, telecommunications, mining, and pharmaceuticals, require additional regulatory approvals. Projects with significant environmental impacts may require environmental permits. We can assist in evaluating and applying for the necessary permits.

Colombia has a relatively liberal foreign exchange regime. Foreign investments must be registered with the Central Bank, and profits, dividends, and divestment proceeds can be freely remitted. Foreign exchange transactions, such as international trade and loans, must be conducted through authorized financial institutions. Transactions exceeding US$10,000 must be declared. Maintaining complete records of foreign exchange transactions is recommended.