HOW DO I OPEN A BUSINESS IN COLOMBIA?
CHAMBER OF COMMERCE (CAMARA DE COMERCIO)
One of the most common questions a tourist has that falls in love with Colombia is, How do I open a business in Colombia? What can i do in Colombia for work? Well you definately have to be creative and patient, and i may not be able to answer all those questions, but here we explain the process on how you can get your business license, and qualify for a business visa. Colombia is friendly to foreign investors and encourages foreign investment. Colombia has gone a long way with new laws to enforce protection of foreign investment. As a matter of fact your better of here than anywhere in South America.
In Colombia, we have a Chamber of Commerce, and they are responsible for issuing business licenses. As in most other countries, there are many types of businesses that you may open. Colombia makes it easy to do business, especially in Bogota and Medellin!
Medellin Camara http://www.camaramedellin.com.co/
Bogota Camara http://camara.ccb.org.co/portal/
PERSONA NATURAL (SOLE PROPRIETOR)
The most simple type of business, for one person to open is the persona Natural. This option is the least expensive for tax reasons, if you're an individual person offering services or selling products and you do not expect to exceed roughly US$40,000 yearly in net sales or net income for the company. The next step up, is to incorporate your business, and of course, you run into needing an accountant and having to write official bills and tax everything you do right from the beginning.
PERSONA NATURAL - Up to 80 Million you don't pay taxes
I'm not going to tell you which type of business. You should open as this is a decision that should be based on your business plan and all the other factors which may influence your decisions. Of course if you have several business partners, or investors, or perhaps because of the nature of your business incorporating MAY provide you a higher level of protection than a simple persona natural (SOLE PROPIETOR) business.
Limited Liability Corporations:
(Pay taxes as you go depending on the industry your in.)
SAS - FOR 1 PERSON
SA FOR 5 PERSONS ARE MORE -
Tax ID number
in order to open up a business in Columbia you will need to obtain a tax ID number before you can do the paperwork to open up the corporation. Both opening up a corporation and getting a tax ID number both require that you have your passport or Colombian ID, which is referred to as a CEDULA.
Doing business in Colombia? Get your Colombian residency!
there are many types of residency visas which you can qualify for if you are doing business in Columbia. It is important to realize the differences. A Colombian business visa is intended for people that do not live in Columbia, but allows you to stay in Columbia up to six months at a time and conduct business for a foreign owned company. A Colombian business owner visa allows you to live in Columbia and make money in Columbia, and requires a minimum investment of approximately US$25,000. A Colombian worker visa allows you to live and work in Columbia for a Colombian Corporation. The business owner visa and Colombian worker visa both allow you to stay in Columbia year around without leaving. Business visas must be renewed on a yearly basis.
Legal document processing services:
international legal document services for opening businesses and obtaining residency visas can be found at www. Columbia visas.com. This is a registered company which operates out of Medellin Columbia, and is run by American Expat James Lindzey. Colombia Visas has 5 years experience dealing with legal processes for foreigners, including opening businesses and processing immigration applications among many other issues relative to tourists and new ex-pats.
For more information on opening companies, and getting permission to work in Colombia you can contact:
Visas y Tramites Internacionales
James Shotwell Lindzey
REFERENCE: CLASSIFICATIONS OF COLOMBIAN COMPANIES
Please see our new web page on setting up a company in Colombia
This type of company has no rating, because it's focused on people starting a small business where there is no need to deploy complex structures at the legal level, the entrepreneur will respond with his assets in any case against the business.
As a Legal Entity:
There are 7 types of companies but we will discuss the basics here of the most popular 4 briefly:
1. Limited Partnership:
This type of company must have minimum 2 and maximum 25 members to be lodged in writing before a notary or a public document in the Chamber of Commerce, the partners will answer for their contributions and may appoint a legal representative and a manager. The name or names must include the word Limited or the abbreviation ltda.
2. Sole Proprietorship:
This type of business the employer is constituted by a notary document or private document in the Chamber of Commerce, enough with the commercial register to be legal. His name should have the word or abbreviation sole proprietorship U.S.
3. Anonymous Society (Sociedad Anónima S.A):
It is by a private deed or document in a conspicuous Chamber of Commerce to between at least five shareholders who respond to the amount or respective capital contributions that have provided for society. You must define the duration of the company. Is controlled by the general assembly of shareholders who define the tax inspector and board of directors, who in turn defines the manager, the capital stock which are negotiable. Your name will be called its actions but followed by the words "Sociedad Anónima" or its abbreviation "SA".
4. Collective Society:
There is a notary deed or private document Chamber of Commerce to between two or more partners who respond solidarity, unlimited and secondarily for all corporate transactions. may delegate the administration of society in other foreigners, but losing the chance to fill or manage businesses. Each partner must surrender their capital contributions, kind or labor, defined in this way, the capital of the company. It is important to know that the name of these societies is formed with the full name or surname only one partner, followed by the word "Incorporated," "brothers" or "and children". This means that there may be a strange name in the name.
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