The importance of incorporating a company legally

Why Legally Constitute Your Company in Colombia?

Until recently, many people who took the initiative to create their own company chose not to legally constitute it. This was because the registration process was very complicated, and they also thought it would be much more expensive to set up their company, due to the expenses involved in the process and the legal requirements they had to meet.

But times have changed, and now legally constituting a company is much simpler and cheaper. In fact, since the creation of the Simplified Stock Company (S.A.S.) in Colombia, the number of legally constituted companies has increased.

This is because the process has been simplified (also reducing its costs; you can see How Much Does it Cost to Create a Company in Colombia?) and, even so, new companies can enjoy the benefits of being legally constituted. You can learn more about the Benefits and Advantages of Creating an SAS in Colombia.

And even with all the facilities, there are still entrepreneurs who do not legally constitute their companies, as there is the idea that they are exempt from complying with legal requirements. Unlike this idea, it is much more beneficial and economical in the medium or long term to legally constitute a company than not to do so.

Benefits of Legally Constituting Your Company

Legally constituting your company offers you:

1. Greater visibility to your target audience.
2. Access to financing to improve your company. You can read more about Financing for Companies in Colombia.
3. Presenting yourself as responsible, which increases your credibility.
4. Increased sales, as people will trust you more.
5. Easier growth for your company.
6. Better safety benefits for your employees.
7. Ability to contract with larger companies.

Who Doesn't Need to Formalize?

However, it is still understood that there are people, or rather businesses, that do not want or need to formalize legally.

In Colombia, selling without being formalized is not a crime; there are businesses that do not project themselves in the future to be large companies.

These businesses are generally businesses that are limited to a small social circle, such as the neighborhood, friends, family, and acquaintances.

The Importance of Business Education

It is also important to provide good education to the entrepreneur and explain the benefits it offers, providing them with the necessary knowledge to make the decision.

In addition, many companies are at the service of people to assist them in the process, such as banks, law firms, and even the Chamber of Commerce. You can see the Legal Requirements for Creating a Company in Colombia and the Steps to Create a Company in Colombia.

Growth and Business Expansion

If, as an entrepreneur, your goal is to grow and expand your business, formalizing your company legally will bring you many benefits.

You should consider it as a future investment that will guarantee you achieve your goal and be the owner of your own business.

Need Help Formalizing Your Company?

If you need help formalizing your company, at Servicio Legal we can help you. Our lawyers will accompany you throughout the creation of your company under the S.A.S. modality, indicating the different documents you will need and representing you before the entities.

Contact Us if you want to know more about our services.