Company Formation in Colombia
Register a company in Colombia through the S.A.S. structure, with formation, tax registration, and foreign-investment compliance handled correctly from the start.
Formation Timeline
3-6 weeks
Tax ID
NIT
Primary Registry
Chamber of Commerce
How to Set Up a Company in Colombia
Nearly all foreign-owned companies in Colombia incorporate as a Sociedad por Acciones Simplificada (S.A.S.), a flexible entity created by private document and registered directly with the local Chamber of Commerce, without a notary. There is no statutory minimum capital: authorized capital as low as COP $1,000,000 is common, and only a portion needs to be paid in at formation. Once registered, the company receives its NIT (tax ID) through DIAN's RUT process, and any capital contributed by a foreign shareholder must be registered with Banco de la República as foreign direct investment. Registration itself is fast by regional standards, typically 5 to 10 business days once documents are ready; the full timeline for a foreign shareholder runs longer once tax registration and corporate bank account opening are included.
Key Requirements
Entity type: Sociedad por Acciones Simplificada (S.A.S.), Colombia's standard vehicle for foreign investors, allowing a single shareholder and no board of directors
Minimum capital: none set by law, though authorized capital of COP $1,000,000 (roughly USD $250) is common in practice and does not need to be fully paid in at incorporation
Registering agency and tax authority: the local Chamber of Commerce handles legal incorporation through Colombia's national business registry (RUES), and DIAN issues the NIT (tax ID) through the RUT process once registered
Notarization: not required for an S.A.S. funded with cash, which is formed by private document filed directly with the Chamber of Commerce, unlike jurisdictions such as Mexico or Chile that require a notarial deed
Foreign-shareholder specifics: a legal representative domiciled in Colombia is typically needed to process DIAN registrations and open a corporate bank account, and capital contributed from abroad must be registered with Banco de la República as foreign direct investment
Registered address: a physical commercial address in Colombia is required for the Chamber of Commerce filing and DIAN correspondence, and determines the municipality for the ICA (industry and commerce) tax
Common Challenges
The revisor fiscal threshold catches growing companies off guard
Colombian law requires an S.A.S. to appoint a revisor fiscal (statutory auditor) once gross assets or revenue cross set thresholds. Companies that start small and scale quickly often miss the trigger and have to appoint one retroactively.
Capital must be channeled through the formal foreign exchange market
Contributions from abroad have to be brought in through an authorized foreign exchange intermediary and registered with Banco de la República. Skipping or informally handling this step complicates dividend repatriation later.
Corporate bank accounts take longer than the incorporation itself
Colombian banks apply strict KYC to foreign-owned entities, often requiring the legal representative's in-person presence and notarized documentation from abroad. Budget more time for banking than for the Chamber of Commerce registration.
How NavviPal Helps
End-to-end S.A.S. formation, from drafting the incorporation document through Chamber of Commerce filing and NIT issuance with DIAN
A Colombia-domiciled legal representative and registered commercial address, so the entity can bank and receive DIAN notices from day one
Foreign investment registration with Banco de la República handled alongside formation, so capital is properly documented for future repatriation
Ongoing guidance on the revisor fiscal threshold, ICA municipal registration, and other post-formation compliance triggers foreign owners commonly miss
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