How to Create a Company in Colombia
Starting a business in Colombia can be an exciting and rewarding experience. However, it's important to follow the correct steps to ensure you comply with all legal and operational requirements. Here is a step-by-step guide on how to create a company in Colombia.
1. Develop a Business Plan
Before starting with the legal procedures, it is essential to develop a solid business plan. This plan should include:
- Description of the business and its objectives
- Market and competition analysis
- Marketing and sales strategies
- Financial projections
- Organizational structure
2. Choose the Legal Structure
In Colombia, you can choose from several legal structures for your company. The most common are:
- Sociedad Anónima (S.A.) - Corporation
- Sociedad por Acciones Simplificada (S.A.S.) - Simplified Stock Company
- Sociedad de Responsabilidad Limitada (S.R.L.) - Limited Liability Company
- Empresa Unipersonal (E.U.) - Sole Proprietorship
Each type has its own characteristics, advantages, and disadvantages, so research which one best suits your needs.
3. Register the Company Name
You must check the availability of your company name in the Registro Único Empresarial y Social (RUES). Ensure that the name is not already in use and complies with legal requirements.
4. Draft the Bylaws
The bylaws are the documents that establish the operating rules of the company. They include information about:
- Name and address of the company
- Corporate purpose
- Share capital
- Administrative structure
- Rights and duties of partners or shareholders
5. Company Incorporation
The next step is to formalize the incorporation of the company before a notary. You will need to present:
- Incorporation document (bylaws)
- ID cards of partners or legal representatives
- Proof of payment of notary fees
6. Registration in the Commercial Registry
Once the bylaws are incorporated, you must register your company in the Commercial Registry of the Chamber of Commerce of the jurisdiction where the company will operate. This registration gives the company legal personality and allows it to operate legally.
7. Obtain the RUT
The Registro Único Tributario (RUT) is the document that identifies the company before the DIAN (National Tax and Customs Directorate). You must register your company in the RUT and obtain a tax identification number (NIT).
8. Register with Social Security
It is mandatory to register employees in the social security system, which includes:
- Health (EPS)
- Pension (AFP)
- Occupational hazards (ARL)
- Family compensation fund
9. Open a Bank Account
Open a bank account in the name of the company to manage its finances. Most banks require:
- Copy of the RUT
- Certificate of existence and legal representation
- Identity documents of the legal representatives
10. Obtain Licenses and Permits
Depending on the economic activity of your company, it may be necessary to obtain additional licenses or permits. Some sectors, such as food, health, and construction, have specific requirements.
11. Implement Accounting
Hire an accountant or an accounting firm to keep the company's financial records and ensure compliance with all tax and accounting obligations.
12. Marketing Strategy and Launch
Finally, develop a marketing strategy to promote your company and attract customers. Consider using social media, online advertising, and launch events to make your business known.
Conclusion
Creating a company in Colombia involves following a series of legal and administrative steps, but with proper preparation and the help of professionals, you can establish your business efficiently. This process will not only allow you to operate legally but also lay the foundation for the success and growth of your company.
Contact Us for more information or get an Appointment
