Setting up a company in Colombia

There are 8 different ways for setting up a company in Colombia, according to the Code of Commerce and Law 1258 of 2008.

It is not necessary to hire a lawyer for setting up a company in Colombia. Nevertheless, it is highly advisable that you seek the advice of an experienced professional to determine which type of company is the most useful, depending on the activity you perform. A lawyer will also be in charge of drafting the status of your company. Our experienced lawyers can help you in setting up a company in Colombia, because we have ample experience in foreign investment in Colombia.

Under Colombian law, the following may be created: a Sole Proprietorship, a Worker Cooperative Company, a Limited Liability Company, a Joint Stock Company, a Simplified Joint Stock Company, a General Partnership, a Limited Partnership, and a Limited Joint Stock Company.

All these institutions have legal personality, and therefore have responsibilities and rights. Choosing which company is the most favorable, according to your interests, is a key process that we can help you with. This is an important decision, because you will have to take into account the amount of capital you have as well as the number of partners you will incorporate into your company.

The time of incorporation of a company in Colombia ranges between 10 and 14 working days.

Key characteristics of companies incorporated in Colombia

In a sole proprietorship, its owner has the legal capacity to carry out commercial actions. However, they must respond, with all their patrimony and without limits, before any person affected by the actions of that company.

The Working Cooperative Company seeks the commercialization, distribution and production of basic goods that are intended for family consumption. The members may also offer individual or joint services.

In the Limited Liability Company, each member is responsible for the entire amount of the capital contributed. Meanwhile, the Corporation is formed through funds contributed by the shareholders, who are liable up to the total amount of the monetary contribution of the members. This type of company is operated by managers on a temporary basis.

The Simplified Joint Stock Company may be incorporated by one or several legal or natural persons. All of them will be liable up to the amount of the economic contribution they make. This type of company must comply with the same rules that apply to corporations for tax purposes.

The key feature of a partnership is that all partners have unlimited liability for all operations carried out by the partnership.