Some time ago, we talked about the importance of incorporating a company legally, and what benefits it can bring to your business, if you want to read more about this article, you can do it here.

Now, there are several models to legally incorporate a company, each one of them with its own requirements and procedures for its conformation process.

But, thanks to Law 1258 of 2008, a new figure was created that simplified the procedures and reduced costs, allowing entrepreneurs to legally incorporate their company: The Simplified Joint Stock Company or S.A.S.

In this opportunity we want to talk to you about what this type of company is, what benefits it can bring you, and how you can register your company as an S.A.S.

What is a Simplified Joint Stock Company?

It is a capital company that can be formed by one or several persons, which will always have a commercial nature, regardless of the activities that will be performed as corporate purpose.

The registration of a company under this corporation is made under a private document before the Chamber of Commerce. This type of company helps Colombian entrepreneurs to create a company, since its procedures are much reduced, it reduces costs and allows access to financing funds such as seed capital, and helps it to be recognized in its sector as a reliable and responsible company.

Advantages of the Simplified Joint Stock Company

Among the main advantages of this company are the following:

It may be formed by one person or by several persons, whether natural or legal.
Simplification of procedures; the S.A.S. can be formed in less than 4 days.
It does not require the creation of a board of directors or a statutory auditor, which saves on start-up costs.
Entrepreneurs can choose the corporate rules that best suit their interests.
Shareholders are liable only up to the amount of their contributions.
The duration of the company can be for a specific period of time or indefinitely.
It offers the entrepreneur the possibility of accessing venture capital and seed capital funds.
If the company does not operate and has to be liquidated, the shareholders are only liable to the creditors for the amount they made at the time of creation, without affecting the shareholder’s personal assets.

How is the procedure to create a Simplified Joint Stock Company?

As mentioned above, one of the advantages of this type of company is that its procedure is much simpler, in fact, it is estimated that between 3 and 4 days you can complete all the formalities and have your company incorporated under this company.

The 7 steps to form a Simplified Joint Stock Company are:

1 Consultation and selection of the company name

The first step is to choose a name for your company. During this step it is important that you check if the name you want is available for registration; if the name is already registered, you must search for another name.

To find out if the name you want for your company is available, you must access the website of the Registro Único Empresarial Social (RUES), type the name you want, and the system will tell you if it is available or not.

2 Preparation of documents

You need the following documents:

Private incorporation document: These documents define the bylaws for the structure of the organization; you can search for a format and adapt it to your needs.
Obtaining the Pre-RUT: The Pre-RUT is processed through the DIAN website.
Single Business Form: It is purchased at the chamber of commerce in your city. This document is filled out with the company’s data.

In addition, a copy of the identity card or passport of the legal representative is required, together with a copy, and, if you wish a lawyer to carry out this procedure for you, a power of attorney is required.

3 Company registration

Once you have all this paperwork, you must go to the Chamber of Commerce and apply for registration. If everything is in order, you will be charged the respective registration fees together with the incorporation costs.

Once everything has been reviewed, you will be given a preliminary version of the commercial registry with which you can open the savings account.

4 Open a savings account

With the preliminary version of the commercial registry, you can go to the bank of your choice to open your account, be aware of the policies of each bank, as they may ask for additional documents.

5 Processing the definitive RUT

This procedure is carried out at the DIAN and requires: identity card and copy of the identity card of the legal representative of the company, preliminary version of the commercial registry, document that certifies the possession of a savings account (document that is given to you in the previous step).

6 Obtaining the definitive commercial registration

With the RUT, you go to the chamber of commerce to complete the registration.

7 Resolution of invoice and digital signature

Through the DIAN the form for the invoicing resolution is requested (The form can be downloaded from the DIAN website). With the form in hand, take it along with the identification card and a copy of the legal representative and the definitive commercial registry.

With just these 7 steps you can set up your company in 3 to 4 days and begin to carry out your corporate purpose. This company represents a great advantage for both entrepreneurs and the country, so do not hesitate to incorporate your company and, if you need help, at Servicio Legal we are here to help you. Our lawyers will accompany you throughout the whole process so that the incorporation of your company is a success.

If you want to know more about our service, or if you want to hire it, you can do it by clicking here.

Simplified Joint Stock Company in Colombia: the best way to start up a business