Setting up a company in Colombia as a foreigner

Being able to create a company in Colombia being a foreigner, undoubtedly, represents a series of benefits for both the owner of the company and for our country.

It is not surprising that many foreign entrepreneurs want to open their businesses in other countries, especially in Latin American countries.

With the rapid economic growth of these countries, it represents a great opportunity for equal growth and expansion for the entrepreneur.

With this in mind, Colombia has allowed the creation of foreign companies, simplifying the process, but still complying with all regulations.

That is why in this article we will tell you how you can create a company in Colombia being a foreigner, and what you should take into account when doing so.

Key aspects for setting up a company in Colombia as a foreigner

Before you can create a company in Colombia being a foreigner, you must take into account 3 key aspects that will influence the whole process of creation, these are:

• Define immigration status.
• Choose the type of company to create.
• Legalize foreign investment.

Below, we will explain each aspect

Define immigration status

As a general rule, any national of a country can legally establish a company in the national territory where he/she is located.

Now, being a foreigner, you must have the correct immigration permits to be able to create a company in our country.

For this, the foreigner must have a valid Type M partner or owner visa, as well as a foreigner identification card, which is obtained once the type M visa is obtained, in order to be able to carry out the procedures in his or her own name.

If you would like to learn more about the M type partner or business owner visa, we invite you to read our
blog here
.

Choose the type of company to create

Once you have defined your immigration status, the next step is to choose the type of company in order to create a company in Colombia as a foreigner.

In Colombia there are several types of companies: Sociedad Anónima (S.A.), Sociedad por Acciones Simplificadas (S.A.S.) and Sociedad de Responsabilidad Limitada (LTDA).

We recommend the creation of an S.A.S. since its procedure is very simple, and allows you to create a company in Colombia being a foreigner in a very short time.

If you want to know all the benefits of incorporating your company under the S.A.S. modality and how is the process of creation, we invite you to read our
blog here
.

Likewise, we will mention the steps that you must take into account to carry out this procedure:

1. Consultation and selection of the company name.
2. Preparation of documents.
3. Registration of the company.
4. Open a savings account.
5. Obtain definitive commercial registration.
6. Invoice resolution and digital signature.

Legalizing foreign investment

As part of the process of creating the company S.A.S., it is required to open a savings account, in order to be able to deposit the money with which the company will work.

In order to avoid money laundering, only Colombian nationals or persons with a foreigner’s identity card are allowed to open a bank account in our country.

Therefore, the person is required to travel to Colombia in order to carry out this procedure, however, a power of attorney can also be granted to an attorney acting as representative of the company, so that he/she can carry out this procedure.

Once the account is opened and the money is deposited, it must be legalized before the Banco de la República (Banrep) within three months after the money enters Colombia.

In Summary

Setting up a company in Colombia as a foreigner is totally feasible, as long as the requirements previously mentioned in this blog are met.

It should be noted that, although this process can be done independently, it is also possible to count on the advice and legal representation of lawyers who are experts in immigration law and business creation.

This also represents an advantage, since there are procedures that require the presence of the entrepreneur (such as obtaining the RUT and opening the bank account), and having a lawyer in Colombia helps to avoid this displacement.

If you are interested in creating a company in Colombia as a foreigner, Servicio Legal can help you.

Just contact us and we will advise you throughout the process.