What procedure exists for a non-resident to invest in Colombia?

What procedure exists for a non-resident to invest in Colombia

Foreign investment is the capital that comes to the country from abroad. Said investment can be made by individuals or legal entities who do not reside in the country and who invest in goods, companies or shares. According to information from the Banco de la República, foreign investment gives a big boost to the country’s economy. Foreign capital increases dollars and helps to include Colombia in the global dynamics at the economic level.

Ways to create a company in Colombia without being a national

There are two ways to achieve the objective of creating a company in Colombia without being a national, then we explain.

  1. The first is regulated by Decree 119 of 2017, as a capital investment option in shares or companies, under the figure of an attorney in Colombia. The entity that advises those interested in this process is ProColombia. This Institution is an agency of the State that is in charge of promoting foreign investment in the country. This investment goes beyond the area to be invested and the capital. The people or companies that make the decision to invest do so to increase or diversify their income. For this they must know what the procedure is established under the rules to avoid inconveniences in the process.
  2. You also can process an investor visa by being part of a commercial company or as an individual. This procedure allows the foreigner to be the owner of the investment and is carried out before the Ministry of International Relations.

How to create a company in Colombia according to the new decree

To know how to create a company in Colombia you should take into account the following:

  • The first step is to register with the Banco de la República all the investments made by a foreigner in Colombia under the figure of foreign investment.
  • The deadlines and the modalities that existed were eliminated, as well as the sanctions related to non-compliance with these requirements. There is no longer a modality or term to register an investment in Colombia.
  • Foreign investors must have an attorney in Colombia who will be in charge of complying with exchange, tax, information and other issues in accordance with national legislation related to their activity.
  • It will also be allowed to register the investment in a portfolio of shares or directly through a proxy that the investor must choose.
  • The permit applicant must attach certificates issued by chambers of commerce if he is a partner or owner of a company.
  • According to data from ProColombia: ” Between January and March 2021, Colombia received 33 new investment projects managed and captured by ProColombia with business estimated for US$1,595 million, a figure that represents a 6% growth compared to the US$960 million reported by the entity for the same period of 2020 ”.

Also: “We see that the interest of investors to do business in Colombia remains firm. Entrepreneurs around the world are in search of locations to relocate and expand, it is here that our country is recognized as a strategic and highly competitive option, thanks to its strategic location, qualified talent, multiple development poles, tax incentives and commercial agreements for access third markets in the region, “says Flavia Santoro, president of ProColombia.”

The task of a foreign investor must be guided by specialists in the field who provide timely information in the process. The Ministry of International Relations and ProColombia are the public entities through which they can achieve the investment objective. The support of accounting services Colombia companies is vital in the process since they will do the paperwork and avoid misinformation.