Starting a business in Colombia is a process that can seem intimidating, but with the right guidance and advice, it is possible to establish a successful business.
In this article, we will explain the key steps to create a company in Colombia and the important considerations you should take into account during the process.
Define the Legal Structure of your Company
Before creating your company, you must decide what legal structure will be best for your business.
In Colombia, the most common options are the Simplified Joint Stock Company (Sociedad por Acciones Simplificada, SAS), the Public Limited Company (Sociedad Anónima, SA), among others.
Each legal structure has its own advantages and disadvantages, so it is important to do careful research before making a decision.
Choose a Name and Register your Company
Once you have chosen the legal structure of your company, you must choose a name and register your company.
Registration is done through the Chamber of Commerce of the city where the company will be located.
It is important to make sure that the name chosen is not already registered and that it complies with the Chamber of Commerce rules.
Obtain a Tax ID
After registering your company, you must obtain a tax ID.
This process is carried out through the National Tax and Customs Directorate (DIAN).
Tax identification is required to conduct business transactions and pay taxes.
Obtain a Business Bank Account
To keep your personal and business finances separate, it is important to open a business bank account.
This will make it easier to track your company’s income and expenses and will also help you file accurate tax returns.
Register your Employees
If you plan to have employees, you must register them with the Pension and Severance Funds Administrator (AFP) and the Social Security Health System.
This ensures that your employees are protected by social security and have access to health care and other benefits.
Obtain the necessary permits
Depending on the type of business you are starting, you may need to obtain additional permits before you begin operating.
For example, if you are opening a restaurant, you must obtain a health permit and comply with health regulations.
Start of operations
Once you have completed all the above steps, you can start operating your business.
It is important to have a solid business plan and a clear strategy to attract customers and grow your business.
In conclusion, establishing a company in Colombia is not a complicated process, but it is important to follow the necessary steps to ensure that your business complies with local rules and regulations.
Defining the legal structure of your company, choosing a name and registering your company, obtaining a tax ID and a commercial bank account, registering your employees, obtaining the necessary permits and starting operations are the key steps to create a successful company in Colombia.