How to Register a Company in Colombia as a Foreign Business

Colombia has quietly become one of the easiest places in Latin America for a foreign company to incorporate. The reason is a single, well-designed corporate vehicle — the S.A.S. — that can be created by a private document, owned entirely by foreign shareholders, and run by a single owner. For companies expanding into the Andean region, Colombia offers a large domestic market, a stable legal framework for foreign investment, and a registration process that, handled correctly, is faster than most of its neighbors. This guide explains how to register a company in Colombia as a foreign business, what it costs, and what you'll owe once the entity is active.

Why foreign companies choose Colombia

Colombia is the third-largest economy in Latin America and a natural hub for the Andean and Caribbean markets. Foreign investors enjoy national treatment — meaning, in most sectors, the same rights as local investors — and capital brought into the country can be registered to guarantee the right to repatriate profits and proceeds later on.

A local entity lets you bill in pesos, hire under Colombian labor law, open a corporate bank account, and contract directly with clients. For service, technology, and commercial businesses, full foreign ownership is the norm rather than the exception.

Choosing the right entity type

The standard vehicle for foreign investors is the Sociedad por Acciones Simplificada (simplified shares company), or S.A.S.. Introduced in 2008, it has become by far the most popular corporate form in Colombia for good reason:

It can have a single shareholder, individual or corporate.
Shareholders' liability is limited to their capital contribution.
It can be incorporated by a private document registered with the Chamber of Commerce — no notarized public deed required in most cases.
Its bylaws are highly flexible.

The statutory minimum capital is nominal — COP 1,000,000 — though the amount you actually subscribe should reflect your operating plan and any foreign-investment registration you intend to make.

The registration process, step by step

At NavviPal, we manage Colombian incorporation in six stages:

Document gathering. We collect identification, proof of address, and corporate documents from each shareholder and director.
Consultation call. We confirm the entity type, shareholding split, bylaws, and the company's corporate purpose.
Drafting the constitutive document. Local counsel prepares the documento de constitución (incorporation document) and a power of attorney, so shareholders do not need to be present in Colombia.
Execution of documents. The incorporation document is signed. Unlike many countries in the region, an S.A.S. can typically be formed by private document rather than a notarized deed.
Registration with the Chamber of Commerce. The company is filed with the Cámara de Comercio (Chamber of Commerce), which creates the legal entity and issues the certificate of existence.
Tax ID issuance. The tax authority, DIAN (Dirección de Impuestos y Aduanas Nacionales), issues the NIT (tax identification number) via the RUT (single tax registry).

For foreign-owned companies, there's an additional, important step: foreign capital brought into the company should be registered as foreign investment with the central bank, Banco de la República. This registration is what protects your ability to remit dividends and capital abroad later — skipping it is one of the most consequential mistakes a foreign founder can make.

Documents you'll need

For the shareholders and directors, expect to provide:

Passport or national ID for all shareholders and directors
Proof of address for all shareholders and directors
A beneficial ownership (UBO) declaration
A bank reference letter
A corporate structure chart, where a shareholder is a company
A certificate of incumbency for any corporate parent

Documents issued abroad generally need to be apostilled and officially translated into Spanish.

Timeline and cost

Colombia is comparatively quick because the S.A.S. avoids the notarized-deed step required elsewhere. The main variables are how fast shareholder documents are gathered and apostilled, and the Chamber of Commerce registration queue. Once documents are ready, registration and NIT issuance typically move within a couple of weeks.

For a detailed breakdown of what you'll pay, see our Colombia company formation cost guide.

Your obligations after incorporation

A Colombian entity carries recurring duties from the moment it's registered:

Monthly IVA declarations to DIAN. IVA (value-added tax) is charged at the standard 19% rate.
An annual income tax return to DIAN. The headline corporate income tax rate is currently 35%.
An annual shareholders' meeting (AGM).
An annual renewal of the commercial registration with the Cámara de Comercio — a filing that's easy to forget and carries penalties if missed.

DIAN also issues periodic information requirements (información exógena) that companies must respond to within set deadlines. Missing these triggers sanctions, so an entity in Colombia needs active monitoring, not just an annual checkup.

Common pitfalls for foreign founders

Not registering foreign investment with Banco de la República. This is the single most important compliance step for protecting future remittances.
Forgetting the Chamber of Commerce annual renewal. It's a recurring obligation, not a one-time registration.
Ignoring DIAN information requests. These arrive with short deadlines and real penalties.
No appointed legal representative. A Colombian S.A.S. needs at least one legal representative on record to operate and bank.

Setting up in Colombia with NavviPal

NavviPal forms and maintains legal entities across Latin America, including Colombia. We handle the full incorporation through the Chamber of Commerce, register your NIT with DIAN and your investment with Banco de la República, and then keep your monthly IVA filings, annual return, and registry renewals on schedule from one dashboard — including alerts for DIAN information requirements before they become problems.

Get expert help registering your company in Colombia

Frequently asked questions

How long does it take to register a company in Colombia as a foreign business?

Once shareholder documents are gathered and apostilled, the process from filing through NIT issuance typically takes 2–4 weeks. Document preparation — particularly apostilling foreign documents — is usually the longest variable.

Do I need a local partner or Colombian shareholder to form a company?

No. Colombia permits 100% foreign ownership in most sectors. An S.A.S. can have a single shareholder, individual or corporate, without any Colombian co-investor in the vast majority of industries.

What is the S.A.S. and why is it the right structure for most foreign investors?

The Sociedad por Acciones Simplificada (S.A.S.) is Colombia's simplified shares company. It can be formed by a single foreign shareholder through a private document — no notarized deed required — with highly flexible bylaws and liability limited to the capital contributed. It is the default choice for foreign-owned subsidiaries.

What is the NIT and why does it matter?

The NIT (Número de Identificación Tributaria) is Colombia's corporate tax identification number, issued by DIAN through the RUT registry. Every company needs a NIT to invoice clients, open a bank account, hire employees, and comply with tax obligations. It is one of the final steps in the formation process.

Why must foreign investment be registered with Banco de la República?

Registering foreign capital with Colombia's central bank is what legally protects your right to repatriate dividends, profits, and capital in the future. Omitting this step doesn't stop you from incorporating, but it can block you from moving money out of the country later — making it one of the highest-stakes compliance steps for any foreign investor.

What ongoing compliance is required after formation?

Monthly IVA declarations to DIAN, an annual income tax return, an annual shareholders' meeting, and an annual commercial registration renewal with the Cámara de Comercio. DIAN also issues periodic información exógena requests that require timely responses — missing them triggers automatic penalties.

This article is for informational purposes only and does not constitute legal or tax advice. Formation timelines and regulatory requirements change — contact NavviPal for current advice specific to your situation.