Benefits and advantages of creating a SAS in Colombia

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Benefits and advantages of creating a SAS in Colombia

In Colombia, a SAS (Sociedad por Acciones Simplificada) is a form of commercial company characterized by being agile, flexible and of simplified incorporation created by law 1258 of 2008. Unlike other types of companies, such as the corporation (S.A.) or the limited liability company (S.R.L.), the SAS offers several benefits and facilities for entrepreneurs and businessmen. The following are some of the benefits of incorporating a SAS in Colombia:

Simplified constitution

The creation of a SAS is faster and simpler compared to other types of companies. It can be constituted by means of a private document, except if assets subject to public deed are contributed in its constitution, in which case it must be constituted by means of a public deed. The only special formalism is the need to authenticate the private incorporation document by all those who participate in it, an authentication that is not a public deed, but a simple acknowledgment of signatures before a notary.

Flexibility in the structure

The SAS allows to adapt the structure and operation of the company according to the needs and characteristics of the partners. Different classes of shares may be established, granting specific rights and obligations to the shareholders. In addition, the SAS does not require a board of directors, which simplifies decision making.

Limited liability

As in other types of partnerships, the SAS offers limitation of liability for the partners. This means that the shareholders are not personally liable for the debts and obligations of the company, but their liability is limited to the capital contributed.

Ease of administration

The SAS allows a more flexible and agile management, since it does not require complex administrative bodies such as a board of directors. The partners are free to agree on how the decisions and administration of the partnership are to be carried out.

Simplified taxation

In tax terms, the SAS offers simplified taxation compared to other types of companies. The SAS is subject to a special regime called Simple Taxation Regime (RST), which simplifies the calculation and payment of taxes.

Number of members

The simplified joint stock company may be incorporated by one or more individuals or legal entities, who shall only be liable up to the amount of their respective contributions.

These are just some of the most outstanding benefits of incorporating a SAS in Colombia. However, it is important to keep in mind that each business situation is unique, so it is advisable to seek proper advice from legal and accounting professionals to evaluate the options and determine which type of corporation best suits your particular needs and objectives.