In this comprehensive guide, we’ll explore the key considerations and steps you need to take to ensure your new business in Colombia is set up for success from a taxation and accounting perspective.

Registering Your Business and Obtaining Tax IDs

The first step in establishing your new business in Colombia is registering it with the appropriate government authorities. This typically involves obtaining a Registro Único Tributario (RUT) or Taxpayer Identification Number, which is required for all business activities in the country.

The RUT serves as your unique identifier for tax purposes and must be obtained before you can start invoicing clients, paying taxes, or engaging in any other financial transactions. The process of obtaining an RUT can vary depending on the legal structure of your business, so it’s important to familiarize yourself with the specific requirements for your entity type.

Understanding the Colombian Tax System

Colombia’s tax system is complex, with a variety of taxes and reporting obligations that new businesses must comply with. The most common taxes that you’ll need to be aware of include:

1. Income Tax (Impuesto sobre la Renta): All businesses in Colombia must pay income tax on their profits, with rates ranging from 31% to 35% depending on the size and structure of the company.
2. Value-Added Tax (Impuesto al Valor Agregado, or IVA): Colombia’s version of a sales tax, the IVA is levied on the sale of goods and services at a standard rate of 19%. Businesses must collect and remit IVA to the government.
3. Payroll Taxes: Employers in Colombia are responsible for withholding and paying various payroll taxes, including social security contributions, pension fund contributions, and employee income tax.
4. Other Taxes: Depending on your industry and location, your business may also be subject to additional taxes, such as property taxes, industry-specific levies, or municipal taxes.

It’s crucial to familiarize yourself with the relevant tax obligations and stay up-to-date with any changes or updates to the Colombian tax code. Seeking the guidance of a qualified accountant or tax professional can help ensure your business remains compliant and avoids costly penalties.

Maintaining Accurate Accounting Records

Proper accounting practices are essential for the long-term success and financial health of your business in Colombia. This includes:

• Establishing a comprehensive bookkeeping system to track all financial transactions, including income, expenses, accounts receivable, and accounts payable.
• Regularly reconciling your bank statements and other financial records to ensure accuracy and identify any discrepancies.
• Preparing and filing all necessary tax returns and financial reports, such as balance sheets, income statements, and cash flow statements.
• Retaining all financial records and documentation for the required period, as specified by Colombian tax authorities.

By staying on top of your accounting obligations, you’ll not only ensure compliance with legal requirements but also gain valuable insights into the financial performance of your business, enabling you to make informed decisions and plan for future growth.

Seeking Professional Assistance

Navigating the taxation and accounting landscape in Colombia can be a complex and daunting task, especially for new business owners. Seeking the guidance of a qualified accountant or tax professional specializing in Colombian business regulations can be invaluable in ensuring your company’s financial stability and compliance.

These experts can provide personalized advice, help you interpret and apply relevant tax laws, and ensure your business is meeting all of its reporting and payment obligations. They can also assist with tasks such as registering for tax IDs, preparing and filing tax returns, and optimizing your accounting practices for maximum efficiency and profitability.

Launching a new business in Colombia requires a thorough understanding of the country’s taxation and accounting requirements. By familiarizing yourself with the necessary registrations, tax obligations, and best accounting practices, you’ll be well on your way to establishing a strong financial foundation for your venture and positioning it for long-term success.

Remember, seeking the guidance of experienced professionals can be invaluable in navigating the complexities of the Colombian business landscape. With the right knowledge and support, you can confidently tackle the taxation and accounting challenges that come with starting a new business in Colombia.

Get Assistance from Easyco Experts!

In conclusion, Colombia is the perfect country for your company formation! In order to make sure you register your company in the right way, you can get in touch with us. Our team of experts will ensure your business registration process complies with all Colombian laws and new legislation.

At Easyco, we make company formation in Colombia easy; our corporate experts have vast experience helping companies and individuals register their businesses in Colombia. We have a proven track record of success across all our services. Easyco also aims to tackle the complex company formation processes across LATAM. We make business registration easy by providing an easy online company registration experience. Start your company in Colombia today!

Furthermore, Easyco also provides additional services to guarantee your company’s compliance, which includes:

• Appointment of legal representation,
• Providing a registered office address
• Handling tax and accounting
• Hassle-free Payroll Services
• Manage your company bank account opening
• Manage your Trademark Registration
• Recruiting and Hiring Talent

The post Navigating Taxation and Accounting for New Businesses in Colombia appeared first on Easyco.

Understanding Colombia’s Business Landscape

1. Diverse Economic Opportunities: Colombia boasts a diverse economy with thriving sectors such as energy, agriculture, and services. This economic dynamism creates a fertile ground for businesses looking to expand and tap into emerging markets.
2. Investor-Friendly Environment: The Colombian government has implemented policies to attract foreign investment, offering incentives and creating a conducive business environment. These initiatives aim to stimulate economic growth and foster a welcoming atmosphere for businesses.
3. Strategic Geographical Location: Positioned at the crossroads of North and South America, Colombia serves as a strategic gateway to regional markets. Its connectivity and accessibility make it an ideal location for businesses aiming to establish a presence in the broader Latin American landscape.

Advantages of Accounting and Tax Outsourcing in Colombia

1. Cost-Efficient Solutions: Outsourcing accounting and tax functions in Colombia provides a cost-effective solution for businesses. Leveraging local expertise allows organizations to benefit from competitive service costs while ensuring compliance with Colombian regulations.
2. Localized Knowledge and Expertise: Colombia’s unique regulatory framework demands localized knowledge. Outsourcing partners in the country possess a deep understanding of Colombian tax codes and accounting standards, ensuring accurate financial management aligned with local requirements.
3. Mitigation of Regulatory Risks: Navigating Colombia’s complex tax regulations requires a nuanced approach. Outsourcing to local experts mitigates the risks associated with regulatory non-compliance, ensuring that your business operates seamlessly within the bounds of Colombian law.
4. Strategic Focus on Core Competencies: By outsourcing non-core functions, businesses can redirect internal resources towards strategic initiatives. This focused approach enhances operational efficiency and positions the organization for sustainable growth in the Colombian market.

The post Accounting and Tax Outsourcing in Colombia appeared first on Easyco.

Strategic Location and Favorable Market Conditions

Colombia’s geographical location acts as a gateway to both North and South America, providing unparalleled access to over 1.5 billion consumers in the region. As the fourth-largest economy in Latin America, Colombia offers a stable and steadily growing market. Furthermore, its thriving middle class is eager to embrace new products and services.

Competitive Tax Rates and Incentives

One of the primary reasons companies are flocking to Colombia is its attractive tax regime. The government has implemented a range of incentives to promote foreign investment and business growth. Some of the key tax benefits include:

• Reduced Corporate Income Tax: Companies expanding to Colombia can enjoy reduced corporate income tax rates, providing significant savings and enhancing profitability.
• Free Trade Zones (FTZs): Colombia boasts several Free Trade Zones, which offer businesses preferential tax treatment, duty-free imports, and streamlined customs procedures.
• Special Economic Zones (SEZs): Companies operating within designated SEZs can benefit from tax exemptions and other financial advantages.
• Tax Stabilization Agreements: Colombia has signed numerous bilateral investment treaties that provide additional protection and predictability regarding taxation for foreign investors.
• R&D and Innovation Incentives: Businesses investing in research and development activities can avail of tax credits and deductions, fostering a culture of innovation.

Regional and Global Trade Agreements

Colombia is a member of various regional and global trade agreements, enhancing its position as an ideal base for companies seeking to access multiple markets. Through agreements like the Pacific Alliance and Mercosur, businesses can capitalize on reduced trade barriers, facilitating easier movement of goods and services.

Growing Technology and Start-up Ecosystem

Colombia is quickly emerging as a hub for technology and innovation in Latin America. With a growing pool of skilled professionals, favorable start-up policies, and government support for tech-based initiatives, expanding companies can tap into a vibrant tech ecosystem ripe with opportunities.

Skilled and Cost-Competitive Workforce

Colombia boasts a young, educated, and dynamic workforce that is not only cost-competitive but also adaptable to new technologies and processes. This highly skilled talent pool adds tremendous value to companies setting up their operations in the country.

How to Register a Company in Colombia?

1. Firstly, select the right type of company for your business
2. Then conduct a search of the desired name in the RUE
3. Appoint a Legal Representative
4. Draft the company’s bylaws
5. Obtain a PRE-RUT
6. Register the company with the Chamber of Commerce
7. Obtain the final RUT
8. Register the company’s books
9. Finally, open a corporate bank account

Expanding your company to Colombia is a strategic move that can unlock numerous growth opportunities. From its advantageous geographical location and competitive tax rates to its inclusion in multiple trade agreements and robust technology ecosystem, Colombia offers a welcoming environment for businesses seeking to expand. The combination of these factors makes Colombia a standout destination, ensuring your company thrives in a dynamic and promising market. So, seize the opportunity, leverage the tax benefits, and take your business to new heights in Colombia!

Remember, the decision to expand is critical, and seeking professional advice and conducting thorough market research will pave the way for a successful venture. Whether you’re a start-up or a well-established firm, Colombia’s potential for growth and prosperity makes it a compelling destination to set your company on a path to success.

Get Assistance from Easyco Experts!

In conclusion, Colombia is the perfect country for your company formation! In order to make sure you register your company in the right way, you can get in touch with us. Our team of experts will ensure your business registration process complies with all Colombian laws and new legislation.

At Easyco, we make company formation in Colombian easy; our corporate experts have vast experience helping companies and individuals register their businesses in Colombian. We have a proven track record of success across all our services. Easyco also aims to tackle the complex company formation processes across LATAM. We make business registration easy by providing an easy online company registration experience. Start your company in Colombian today!

Furthermore, Easyco also provides additional services to guarantee your company’s compliance, which includes:

• Appointment of legal representation,
• Providing a registered office address
• Handling tax and accounting
• Hassle-free Payroll Services
• Manage your company bank account opening
• Manage your Trademark Registration
• Recruiting and Hiring Talent

The post Tax Benefits in Colombia for Companies appeared first on Easyco.

Why Outsource Payroll in Colombia?

1. Time and Resource Optimization: By outsourcing payroll services, businesses can free up valuable time and resources that would otherwise be dedicated to managing payroll internally. This allows companies to focus on core business activities, such as strategic planning, sales, and customer service, thereby increasing overall productivity.
2. Compliance with Local Regulations: Colombia has specific labor laws and regulations that govern payroll management. Staying updated with these regulations can be challenging, especially for businesses without dedicated payroll experts. Outsourcing payroll ensures that your company complies with local laws, minimizing the risk of penalties or legal issues.
3. Expertise and Accuracy: Payroll service providers in Colombia specialize in payroll management, ensuring high accuracy and knowledge. These professionals stay up to date with the latest tax rates, deductions, and labor regulations. Furthermore, by leveraging their knowledge, businesses can avoid costly errors and minimize the chances of miscalculations, which can negatively impact employee satisfaction and trust.

Tasks That Can Be Outsourced

1. Payroll Processing: Outsourcing payroll processing tasks such as calculating employee wages, deductions, and taxes can significantly reduce the burden on your internal team. Payroll service providers in Colombia use advanced software and technology to streamline the process, ensuring accurate and timely payments to employees.
2. Tax Reporting and Compliance: Keeping up with tax reporting requirements and regulations is crucial for businesses. By outsourcing tax-related tasks to professionals, companies can ensure accurate and timely tax filing, reducing the risk of penalties and compliance issues.
3. Employee Data Management: Managing employee data, such as time and attendance records, can be time-consuming. Outsourcing these tasks can alleviate the administrative burden, allowing businesses to access accurate data when needed.

Cost Savings

1. Reduced Operational Costs: Maintaining an in-house payroll department involves costs associated with salaries, benefits, software, training, and infrastructure. Outsourcing payroll services can help reduce these operational costs, as companies only pay for the services they require, eliminating the need for ongoing investments in technology and training.
2. Minimized Risk of Costly Errors: Errors in payroll calculations or compliance can result in fines, penalties, and even lawsuits. By outsourcing to professionals well-versed in payroll management, businesses can reduce the risk of costly mistakes, saving money in the long run.
3. Scalability and Flexibility: Payroll outsourcing services provide businesses with scalability and flexibility. Whether you have a small team or a growing workforce, outsourcing allows you to adapt your payroll management quickly without the need for extensive internal restructuring or hiring additional staff.

In conclusion, payroll outsourcing services in Colombia offer numerous benefits for businesses. They include time and resource optimization, compliance with local regulations, expert knowledge, and cost savings. By partnering with a reputable payroll service provider, your business can streamline payroll processes, enhance accuracy, and focus on core operations. Embrace the advantages of outsourcing and take your business to new heights of efficiency and productivity.

Get Assistance from Easyco Experts!

At Easyco, we make company formation in Colombia easy; our team of corporate experts has vast experience helping companies and individuals register their businesses in Colombia. We have a proven track record of success across all of our services. Easyco aims to tackle the complex company formation processes across LATAM. We make business registration easy by providing a hassle-free online company registration experience. Start your company in Colombia today!

Easyco also provides additional services to guarantee your company’s compliance, which includes:

• Appointment of legal representation,

• Providing a registered office address

• Handling tax and accounting

• Hassle-free Payroll Services

• Manage your Company bank Account Opening

• Manage your Trademark Registration

• Corporate Legal Services

The post Payroll Outsourcing in Colombia: Streamline Business Operations appeared first on Easyco.

Understanding the Colombian Job Market

Before diving into talent acquisition strategies, it is essential to gain a comprehensive understanding of the Colombian job market. The job market in Colombia is diverse, comprising various industries, such as technology, finance, manufacturing, and services. Different regions within Colombia may also have unique characteristics and talent pools. By conducting thorough market research and analyzing industry trends, recruiters can tailor their strategies to attract the right candidates.

Developing an Effective Recruitment Strategy

Building a robust recruitment strategy is crucial for attracting qualified candidates in Colombia. This strategy should encompass multiple channels and tactics to ensure maximum reach and visibility. Some effective approaches include leveraging online job portals, engaging with professional networks, attending career fairs, and collaborating with local recruitment agencies. It is also important to create compelling job descriptions and offer competitive compensation packages to stand out from competitors.

Streamlining the Hiring Process

Once potential candidates have been identified, streamlining the hiring process is vital to secure top talent efficiently. This includes conducting thorough interviews, skill assessments, and reference checks. Utilizing technology, such as video interviews and applicant tracking systems, can enhance efficiency and provide a seamless experience for candidates. It is crucial to maintain clear communication throughout the process, keeping candidates informed about the progress and providing timely feedback.

In a dynamic and competitive job market like Colombia, effective talent acquisition strategies are paramount. By understanding the local job market, developing a robust recruitment strategy, and streamlining the hiring process, organizations can optimize their chances of attracting and securing top talent, driving their success in the Colombian business landscape.

Get Assistance from Easyco Experts!

At Easyco, we make company formation in Colombia easy; our team of corporate experts has vast experience helping companies and individuals register their business in Colombia, with a proven track record of success across all of our services. Easyco aims to tackle the complex company formation processes across LATAM. We make business registration easy by providing a hassle-free online company registration experience. Start your company in Colombia today!

Easyco also provides additional services to guarantee your company’s compliance, which include:

• Appointment of legal representation,

• Providing a registered office address

• Handling tax and accounting

• Hassle-free Payroll Services

• Manage your Company bank Account Opening

• Manage your Trademark Registration

• Corporate Legal Services

The post Effective Strategies for Recruiting and Hiring in Colombia appeared first on Easyco.

The Significance of a Tax ID

In Colombia, a Tax ID, known as “Número de Identificación Tributaria” or NIT, is a vital identification number issued by the tax authority. This unique code serves as a key identifier for individuals and businesses within the Colombian tax system. Whether you’re a local entrepreneur, a foreign investor, or a salaried employee, obtaining a Tax ID is essential for complying with tax obligations and conducting financial transactions.

Obtaining a Tax ID in Colombia

To obtain a Tax ID in Colombia, individuals and businesses need to follow a specific process. It typically involves submitting the necessary documentation, such as proof of identity, proof of address, and legal registration papers, to the tax authority. The application can be completed either online or in person at designated tax offices. Once the application is approved, the tax authority will issue a Tax ID, which will be used for all tax-related matters.

Uses and Benefits of a Tax ID

Tax ID serves various purposes in Colombia. It is required for filing tax returns, paying taxes, and conducting business transactions. With a Tax ID, businesses can issue invoices, participate in government tenders, and establish contracts with other entities. For individuals, the Tax ID is necessary for obtaining employment, registering property, and accessing financial services. It is also an essential requirement for foreigners looking to invest or establish a business in Colombia.

In conclusion, the Tax ID in Colombia is a fundamental identifier that holds significant importance for individuals and businesses. Whether you’re a resident or a foreign investor, understanding the role and application of the Tax ID is crucial for complying with tax obligations and conducting financial activities in Colombia.

How to Register a Company in Colombia?

1. Select the right company type for your business
2. Search for the availability of the name at the RUE or Registro Único Empresarial
3. Draft and notarize the Power of Attorney
4. Prepare and draft the company’s bylaws
5. Obtain a pre-taxpayer ID or Pre RUT
6. Register the company with the Chamber of Commerce
7. Obtain the final taxpayer ID or RUT, and NIT
8. Register your company books
9. Open a bank account in the name of the company

Get Assistance from Easyco Experts!

At Easyco, we make company formation in Colombia easy; our team of corporate experts has vast experience helping companies and individuals register their business in Colombia, with a proven track record of success across all of our services. Easyco aims to tackle the complex company formation processes across LATAM. We make business registration easy by providing a hassle-free online company registration experience. Start your company in Colombia today!

Easyco also provides additional services to guarantee your company’s compliance, which include:

• Appointment of legal representation,

• Providing a registered office address

• Handling tax and accounting

• Hassle-free Payroll Services

• Manage your Company bank Account Opening

• Manage your Trademark Registration

• Corporate Legal Services

The post What is the Tax ID in Colombia? How to obtain it? appeared first on Easyco.

Registering a trademark in Colombia is one important step for companies that want to protect their products, brand, and identity. Like in other countries, you have 5 years in order to start using the trademark and it has to be renewed every 10 years. The trademark registration process, as well as the renewal, can be done online or in person in Colombia.

How to file a trademark in Colombia? Do I need company? Can I register a trademark as a natural person? What documents do I need? How to incorporate a company in Colombia?

Why register a trademark in Colombia?

It is important to register a trademark because it gives you legal protection and it significantly reduces the competition since other companies and businesses won’t be able to commercialize a product with the same name, or logo.

It is also important from a marketing and advertising point of view because your clients will be able to easily identify your brand, product, and name.

These are some of the things that can be registered as a trademark. However, the NICE Classification has many other categories of products, services, and more that can be registered.

• What can be registered as a Trademark?

  • Products

  • Services

  • Production establishment

  • Commercial establishment

  • Advertising phrase (slogan)

  • Sound mark

  • Collective mark

  • Certification mark

What is the NICE classification?

The NICE Classification, often called NCL is the international classification for goods and services that entities around the world use for the registration of trademarks. Since its creation in 2013, it includes 34 different classes and each of them has an alphabetical list of the goods that can be used for registration. The list is updated every five years, but a new version is published every year on the platform designated by the World Intellectual Property Organization (WIPO).

Who is in charge of the registration?

The agency in charge of the registration of trademarks in Colombia is the ‘Oficina Virtual de Propiedad Industrial’, known as SIPI, which is a digital platform created by the Superintendence of Industry and Commerce to facilitate and centralize the process. However, it can also be done at one of the many offices the Superintendence of Industry and Commerce has all over Colombia.

What documents are required to register a trademark in Chile?

To successfully complete the registration of the trademark, the SIPI asks for these documents. They will verify that the trademark is not owned by anyone else.

• Classification of the goods or services according to the NICE guidelines

• Receipt of payment of the fees to the Superintendence of Industry and Commerce

• Application Form with the information of the mark either through the online platform or at the offices of the Superintendence of Industry and Commerce

• File including the logo of the brand

• Power of Attorney of the Legal Representative

Do I need a company to register a trademark in Colombia?

No, you can register a trademark as a natural person, you don’t need to do it under the name of a company. In the future, if you wish to start using the trademark, you can register a company and transfer the trademark to it to start commercializing it.

If you already have a trademark, you have 5 years to start using it, so it is advised that you form a company in Colombia or transfer it to an already existing legal structure. This way you can start with the promotion, production, and distribution, and finally start profiting from it.

How to register a company in Colombia?

Would you like to register a company in Colombia? These are some of the steps you need to follow. Remember that this may differ depending on the type of company, as well as the nature of the business, and more. In some cases, it is necessary to apply for licenses and permits.

1. Identify and select the right type of company

2. Search for the availability of the name at the ‘Registro Único Empresarial’

3. Elaboration and signature of the Power of Attorney

4. Preparation and drafting of the company’s bylaws

5. Obtain a Pre Taxpayer ID or Pre RUT

6. Register the company with the Chamber of Commerce

7. Obtain the final Tax ID or RUT

8. Register the company’s books

9. Open a corporate bank account in Colombia

Get Assistance from Easyco Experts!

At Easyco, we make company formation in Colombia easy; our team of corporate experts has vast experience helping companies and individuals register their business in Colombia, with a proven track record of success across all of our services. Easyco aims to tackle the complex company formation processes across LATAM. We make business registration easy by providing a hassle-free online company registration experience. Start your company in Colombia today!

Easyco also provides additional services to guarantee your company’s compliance, which include:

• Appointment of legal representation,

• Providing a registered office address

• Handling tax and accounting

• Hassle-free Payroll Services

• Manage your Company bank Account Opening

• Manage your Trademark Registration

• Corporate Legal Services

The post How to Register a Trademark in Colombia? appeared first on Easyco.

In Colombia, there are a various banks and types of bank accounts to choose from. It is necessary that the company evaluates and compares which is the one that is going to be the best for current plans but also future requirements it may need. Why is it necessary to have a bank account? What documents do I need? Which type of bank account is right for my business?

Why do you need a Corporate Bank Account in Colombia?

Having a Bank Account for your business in Colombia is necessary if you want to start operations. This bank account is going to be used to deposit the share capital of the company, as well as to do all transactions regarding the business, such as payments to providers, acquisition of material, payment of the payroll, etc. Having a Corporate Bank Account is also necessary for the payment of taxes and deductions.

Furthermore, having a Corporate Bank Account also helps the company have a better image, and gives trust to clients and providers. It looks more professional than just having a bank account in the name of the owner, or one of the managers.

In recent years opening a corporate bank account for companies with foreign owners has been more difficult, banks usually impose time restrictions, where they may allow accounts to be opened only after 6 months after your company has been created, in addition to increased scrutiny. This is why finding a local provider with experience navigating banking difficulties, is key for a successful outcome of your business and corporate account.

What are the requirements to open a Corporate Bank Account in Colombia?

These are some of the documents required when opening a Corporate Bank Account in Colombia. Remember that these requirements are general and may differ from bank to bank.

• Copy of the NIT (Número de Identificación Tributaria)

• Power of Attorney of the Legal Representative

• Copy of the ID of the Legal Representative (s) of the company

• Certified financial statements

• Declaration of the income of the last taxable year

What types of Corporate Bank Accounts are available in Colombia?

There are some different types of Corporate Bank Accounts your business can have in Colombia. These are the most popular and the ones that most banks offer:

• Checkings Account

  The most popular type of Corporate (and personal) Bank Account is a Checkings Account. This is the type of bank account used to pay for day-to-day expenses, withdrawals, and transactions. The bank most of the time gives you a card to use regularly at stores or the ATM. Some banks charge maintenance fees or require you to have a minimum balance available.

• Savings Account

  A Savings Account is ideal if the company has money that is not going to be spent in the near future. This type of bank account pays interest on the money deposited, either at an annual or interest-based rate. Some banks require a deposit of a minimum amount in order to open a Savings Account, but other banks don’t. Some may also have maintenance fees and other costs.

  Banks do not always offer cards for Savings Accounts, and sometimes have a maximum number of withdrawals allowed per month.

The Colombian Peso is the currency of Colombia, however, some banks also have options to open a bank account in US Dollars. This is very useful if your business does transactions abroad or receives payments in US Dollars.

Do I need to register a company to open a Corporate Bank Account in Colombia?

Yes, in order to open a Corporate Bank Account in Colombia, you need to have a Tax Identification Number or ‘NIT’ (Número de Identificación Tributaria, in Spanish). You obtain this number when you have successfully registered your business in the Chamber of Commerce, and you need it to comply with tax regulations. Colombia is a friendly country for business owners and investors and they have been working to simplify the company registration process.

These are the steps to register a company in Colombia:

1. Identify and select the right company type

2. Search for the availability of the name at the RUE or Registro Único Empresarial

3. Elaboration and signature of the Power of Attorney

4. Prepare and draft the company’s bylaws

5. Obtain a pre-taxpayer ID or Pre RUT

6. Register the company with the Chamber of Commerce

7. Obtain the final taxpayer ID or RUT, and NIT

8. Register your company books

9. Open a bank account in the name of the company

Get Assistance from Easyco Experts!

Do you want to know more about the Corporate Bank Accounts in Colombia and how to register your company? Send us a message and we will send you all the information you need to know, as well as help and assess you to successfully start your business in Colombia. Easyco also provides additional services to guarantee your company’s compliance, which includes:

• Appointment of legal representation

• Providing a registered office address

• Handling tax and accounting

• Hassle-free Payroll Services

• Manage your Company Bank Account opening

• Manage your Trademark Registration

• Recruiting and Hiring Talent

• Corporate Legal Services

The post How to Open a Corporate Bank Account in Colombia: Types and Requirements appeared first on Easyco.

There are many types of companies and legal structures to choose from, but it’s always important to remember that it has to cater to the needs of the business. The right choice also depends on the number of employees, shareholders or partners, and assets of the company.

These are the types of Companies in Colombia. In this article, we’ll explain the characteristics of each one as well as its benefits, and specific requirements.

• Sociedades de Responsabilidad Limitada (SRL)

• Sociedades por Acciones Simplificadas (SAS)

• Corporaciones or Sociedades Anónimas (SA)

• Branch Office of a Foreign Company

What are the most common and used types of companies in Colombia? What is the minimum share capital? How to register a company?

Some of the steps and general requirements to incorporate a company in Colombia are:

• Notarize the bylaws of the company

• Obtain an NIT, which is the company’s tax identification number

• Open a corporate bank account at a local bank in Colombia

Sociedad de Responsabilidad Limitada (SRL)

An SRL in Colombia is similar to an LLC. In this type of company, the amount of capital contribution limits the partner’s liability, unless stipulated by the company’s bylaws. Regarding the payment of debts and legal responsibilities, no partners are not liable.

• No board of directors is required

• At the moment of incorporation it’s necessary to have a minimum of 2 partners, but no more than 25

• The contribution of the partners must be fully paid at the beginning of the registration process

• Needs a public deed for the incorporation, but if you wish the documents to stay private you need to comply with these requirements:

  • If the company has 10 or fewer employees

  • If the assets of the company are lower than 500 times the minimum monthly wage in Colombia (approximately USD$ 140,000)

  • The company’s social purpose must be defined and with that limit the company’s commercial activities

Sociedad por Acciones Simplificadas (SAS)

For large and small businesses in Colombia, the most popular and common type of legal entity is SAS. In Colombia, a SAS, compared to the other types of legal structures, has been praised by investors for its flexibility, specifically with the fast and easy incorporation process and the large freedom afforded to shareholders to establish their own terms and conditions.

One of the larger advantages of a Simplified Stock Company (SAS), is the ability to make the articles of incorporation a private document. In addition, the company has the ability to participate in almost any business activity because the social purpose can be left undefined.

These are some of the characteristics that make a SAS attractive and flexible:

• Needs a minimum of 1 shareholder

• Doesn’t require a board of directors

• The amount of the company’s equity is equivalent to the limited liability

Corporations or Sociedad Anónima (SA)

If there’s a big number of shareholders involved in the company, a Corporation (SA) is the best option. Under this legal structure, the shareholder’s liability is limited only to the amount of the shareholders’ equity, unless fraud is committed.

These are some important points to keep in mind when considering a corporation:

• There is a minimum requirement of 5 shareholders and they cannot be in possession of more than 95% of the outstanding capital stocks.

• Needs to have a defined social purpose

• Needs a board of directors

• It usually is incorporated by a public deed just like the SRL, but at the same time if you want to keep the documents private you will need the following requirements:

  • The company has 10 or fewer employees

  • The assets of the company are lower than 500 times the minimum monthly wage in Colombia (approximately USD$ 140,000)

Branch Office of a Foreign Company

If a company has its head office in another country, branching could be another option and that’s because in Colombia the legislation recognizes foreign branch offices as an extension of the parent company. However, they are both viewed as the same legal entity.

The following documentation is required to establish Foreign Branch Office in Colombia:

• Certificate of Incorporation of the parent company

• A Legal Representative to act on behalf of the parent company

• A copy of the company’s bylaws (notarized)

Get Assistance from Easyco Experts!

Colombia is in constant growth and always looking to simplify its processes for incorporation. However, registering a company in LATAM can still be very challenging. To make sure you register your company in the right way, you can get in touch with us, and our team of experts is going to make sure it complies with all Colombian laws, and help you chose the all the types of companies in Colombia.

At Easyco, we make company formation in Colombia easy; our team of corporate experts has vast experience helping companies and individuals register their business in Colombia, with a proven track record of success across all of our services. Easyco aims to tackle the complex company formation processes across LATAM and makes business registration easy by providing a hassle-free online company registration experience. Start your company in Colombia today!

Easyco also provides additional services to guarantee your company’s compliance, which include:

• Appointment of legal representation,

• Providing a registered office address

• Handling tax and accounting

• Hassle-free Payroll Services

• Manage your Company bank account opening

• Manage your Trademark Registration

• Corporate Legal Services

The post Types of Companies in Colombia appeared first on Easyco.

In 2020, it became a member of the Organization for Economic Co-operation and Development (OECD) and it has since been able to standardize and adjust most of its processes to the OECD international standards.

In addition to all these, Colombia is a country that receives foreigners looking to work or start a business. It is a very popular destination because the process is less complex, which makes it a very popular destination in South America to get a Work Visa.

Why do I need a Work Visa?

All foreigners that want to pursue business or professional activities in Colombia need to have a valid work visa in order to comply with the law, fiscal, and other local regulations. A Work Visa in Colombia will also allow you, as a foreigner, to have access to health insurance, a pension fund (in some cases), and other benefits.

What are the types of Work Visas in Colombia?

In Colombia, you can get a Work Visa depending on your migration status and how long you want to pursue business or work activities in the country.

Migrant (M)

A Migrant (M) type of Visa means that the person is planning to live temporarily in Colombia for a maximum of 3 years. This type of Visa requires having a Colombian spouse or partner, or a permanent job in the country. The M Visa is also perfect for business owners and entrepreneurs looking to start a business in Colombia or interested in Real Estate opportunities.

Visitor (V)

A Visitor (V) Visa is ideal for foreigners who want to travel to Colombia, stay temporarily (for a maximum of 6 months), and don’t have a permanent residency. This type of Visa is perfect for service providers or short-term projects at a Branch or local company.

Resident (R)

A Colombian Resident (R) Visa is suitable for individuals that hold a Migrant (M) Visa and wish to live permanently in the country, as well as people looking to invest a minimum of 650 minimum wages in Colombia (around USD $ 170,000). Foreigners are also eligible for this type of Visa if they’ve been married on an M Visa for at least a year or have a child born in Colombia.

How do I obtain a Work Visa in Colombia?

The ‘Cancillería’ or Ministery of Foreign Affairs is responsible for the issue of Visas. You can either apply to get a Visa at one of Colombia’s Embassy or Consulate, or in Bogota.

The requirements to obtain a Work Visa in Colombia vary depending on the type of Visa, however, there are some general requirements and documents needed. Keep in mind all the documents that are not in Spanish have to be translated and be duly legalized and apostilled:

• Valid passport or another travel document (valid for a minimum of 180 days upon arrival) with at least 2 blank pages

• 2 recent photographs with white background

• Original work contract

• Form with a summary of the contract, including information about the employer, employee, type of work, and responsibilities. This document must be signed by both the employer (it can be a company or legal person) and the employee and duly legalized by a Colombian lawyer or Consul

• An academic degree, diploma, or technical certification that proves work proficiency (depending on the type of work, some licenses can be asked for)

• Information about the company or legal person that is going to hire you

Do you need to create a company in Colombia?

If you wish to register a company in Colombia, or you already have one, it can make the process even more simple and fast. This is the perfect option for business owners and investors that want to apply for a Migrant or Resident Visa, since the Colombian government has policies and regulations to promote it.

Get Assistance from Easyco Experts!

Colombia is a very attractive country for business and investment purposes. At Easyco, we can help you obtain a Work Visa in Colombia that suits your personal and business needs.

Easyco also provides additional services to guarantee your company’s compliance, which includes:

• Appointment of legal representation

• Providing a registered office address

• Handling tax and accounting

• Hassle-free Payroll Services

• Manage your Company bank account opening

• Manage your Trademark Registration

• Recruiting and Hiring Talent

• Corporate Legal Services

The post Work Visa in Colombia: Types and Requirements appeared first on Easyco.