How to get the tax registration for a company?

If you have decided to set up a company in Colombia or have seen an opportunity committed to a business idea that could work, the time has come to make dream come true. However, if you want to formalize your business and start operating as soon as possible, it is important to obtain the documentation required by law, such as the tax registration, since the way you set it may have implications for your taxes, legal processes and prosecutors. Therefore, in this article we will explain the entire process of how to do it.

Know the consequences of not bookkeeping.

What you should know about setting up a company

Incorporating a company in Colombia can mean a cumbersome process if you do not take into account various aspects and procedures that are strictly enforced. Therefore, it is recommended that you advise yourself well before starting your project.

These are the steps you must follow:

• Step 1. Check if it is possible to register your company name, in other words, state that it is available. This will be one of the first steps you will take at the Chamber of Commerce when you move with all the documents to register your company.
• Step 2. Write the bylaws of the company. In other words, the contract that will regulate the relationship between the partners.
• Step 3. PRE-RUT. In the Chamber of Commerce you can process the PRE-RUT before proceeding to the registration. It is necessary that you present the bylaws, completed forms, the identity card of the legal representative and that of the alternate.
• Step 4 – Registration. In the Chamber of Commerce they will carry out a study of legality of the bylaws. It is important that you bear in mind that it is necessary to pay the registration tax, which has a value of 0.7% of the amount of the capital.
• Step 5. It is mandatory once the company has been registered along with the PRE-RUT, you proceed to open a bank account. Sometimes without the certification of the bank account, the tax office will not proceed to register the tax registration as final.

Regarding this point, we highlight the procedure for issuing the tax registration:

As detailed by the Chamber of Commerce, these are the requirements to request the NIT (tax identification number), which is an unique Colombian number assigned by the tax office DIAN (Direccion de Impuestos y Aduanas Nacionales) only once when the new entity is registered in the RUT (tax registration).

Requirements for individuals:

• RUT printed, filled out through the portal of the tax office (DIAN) that contains the annotation “FOR PROCESSING IN CHAMBER”.
• Present the original and a photocopy of the solicitor’s identity document. When the process is carried out through the proxy, original and photocopy of the proxy’s identity document and a photocopy of the identity document of the solicitor; original of the special power of attorney or simple copy of the general power of attorney, together with the certification of its validity issued by the notary, when the general power of attorney is valid for more than six (6) months.

Requirements for companies:

• RUT printed, filled out through the DIAN portal that contains the annotation “FOR PROCESSING IN CHAMBER”.
• Present the original and a photocopy of the identity document of the legal representative. When the process is carried out through the proxy, the original and a copy of the proxy’s identity document and a photocopy of the legal representative identity document; original of the special power of attorney or simple copy of the general power of attorney, together with the certification of its validity issued by the notary, when the general power of attorney is valid for more than six (6) months.

Keep in mind that for both cases it is necessary to verify:

• The correct completion of the information registered in the form of the tax registration (RUT).
• The photocopy of the identity document corresponds to the original and that it is displayed.
• That the person requesting the procedure is the individual who is enrolling or the duly empowered attorney.
• That the address provided in the RUT form matches the one filled out in the RUES form.

We explain the importance of accounting records in a company.

If you are an entrepreneur and want to set up a company in Colombia, it is important that you take into account both the legal obligations to which you are subject, and the protocols to follow with all the public entities. Although the above sounds a bit complex, our experts at JLC Auditors will be able to advise you on the process you must follow so that your business or company complies with all the requirements established by law.