Investing in Colombia: Reasons and advantages

Stimulating economic activity today in the face of the health crisis caused by the pandemic unleashed by Covid-19, has become one of the priority issues worldwide. In South America, the incorporation of a company in Colombia in particular, is remarkably interesting because it is a country with a great disposition for entrepreneurship.

Investments improve.

According to recent information, Confecámaras, the Network of Chambers of Commerce of Colombia, is optimistic about the reactivation of investment, indicating that “between January and March 2021, 96,431 companies were created in the country.”

In that sense, to establish a company it is only necessary to define the bylaws, identify the investors, register in the Mercantile Registry, open a bank account, register with the Chamber of Commerce and the Social Security system.

5 compelling reasons to consider Colombia as a good investment place.

The Chambers of Commerce work actively to obtain agreements with government authorities, in order to promote programs that benefit both national and foreign investors, encouraging the development and productivity of their capital; turning this country into a space that offers multiple opportunities. The most important are:

1. Offers guarantees of a safe and profitable investment: according to World Bank thinking, a good projection of economic recovery is estimated for Colombia in 2021, until it stabilizes at 4.2% of GDP in 2023. This would mean a better performance in comparison to many countries in the region. In addition to this, the International Monetary Fund and The Economist Intelligence Unit calculate that in the medium term (2022-2025) Colombia has higher expectations of economic growth in relation to countries such as: Brazil, Mexico, and Argentina.

2. It has a strategic location that facilitates doing business: Colombia has 8 ports that connect it with the Pacific and Atlantic oceans, facilitating its access to markets worldwide. Its 11 international airports place it a few hours away from significant business centers such as: Miami, New York, Mexico City, Santiago de Chile, and Buenos Aires. Being in the center of 5 time zones, it shares a time zone with: New York, Toronto, and Miami. On the other hand, it is quite open culture makes it a country that offers a good quality of life.
3. It has quality human resources: Colombia is characterized by having a large amount of young workforce, with a neutral accent and regularly qualified for the professional market. Additionally, its labor regulation regulations are very manageable, with a moderate salary level that contributes to effective labor relations, strengthening the creation and sustainability of companies.
4. It boasts high-level infrastructure and connectivity: it has a technological development that mixes the use of fiber optic and coaxial cable, focused on increasingly improving the capacity and speed of users’ connection, accompanied by the use of 4G technology. Similarly, it is proposed to constantly increase fixed and mobile access connections to promote the development of digital commerce. Backed in turn, by a recognized energy infrastructure, classified as one of the best in the region.
5. It offers a wide variety of investment opportunities: its attractive tax benefits in free zones, accompanied by the plurality that characterizes its climate, flora, fauna, development, location, among other aspects, proposes investment options in various industrial fields. The manufacturing, agricultural, livestock and mineral exploitation sectors stand out. Additionally, Colombia has become one of the favorite destinations for foreign tourists who travel to South America, producing staggering profits.

Finally, the peace agreement signed in 2017 has allowed foreign investors to explore a greater amount of financial terrain, developing multiple opportunities and advantages that allow them to take advantage of the country’s considerable potential.