Business Registration in Colombia: Step-by-Step Guide for Foreigners
Learn step by step about the timelines and legal procedures to register a company in Colombia in 2025. Ideal for foreign entrepreneurs and investors.
Incorporation of
companies in Colombia
- Choose the name of your company
- Register as an individual or company
- Determine your economic activity
- Draft your Bylaws
- Fill out the Pre-RUT
- Complete company registration
- Set up a bank account
- Present the final RUT to the Chamber of Commerce
- Obtain billing authorization
- Register the books at the Chamber of Commerce
- Make the registration in the Social Security system
Step 01: Choose the name of your company
The name of your company or business is the first way to identify yourself before the law and introduces your activity to the public. Foreigners looking to set up a company in Colombia must visit the RUES (Registro Único Empresarial) to verify if their chosen name is available. If the name is already registered with the Chamber of Commerce, you must choose a new one that matches your business idea.
Step 02: Register as an individual or company
All the tax implications and the different legal responsibilities established by law depend 100% on the nature of your company:
Individuals: It is part of a simplified regime and its accounting can be maintained in a fiscal book. If you are VAT responsible, that is, if you invoice VAT, your accounting must be kept by a CPA.
Company: They are all classified in corporations or public charitable foundations.
Tip for Foreigners: Choosing the right legal structure is key to benefits and liabilities.
Step 03: Determine your economic activity
Identify the type of activity for your company. Foreign investors can consult the CIIU economic activity classification through the Chamber of Commerce website.
Step 04: Bylaws drafting
Once the business name is established, you must write the bylaws that will govern the relationship between the different representatives of the company; This document will become the backbone of business operations and roles, so its content should be reviewed by a professional attorney in order to avoid future disagreements.
Step 05: Fill out the Pre-RUT
The Pre-RUT certificate allows you to obtain the NIT or Tax Identification Number in Colombia. Foreign business owners must present the company’s bylaws and the IDs of legal representatives to the Chamber of Commerce.
Step 06: Registration
Once the Pre-RUT has been completed for the incorporation of your company in Colombia, you must make the registration. The registration tax value corresponds to 0.7% of the total amount. Keep in mind that the Chamber of Commerce will be in charge of analyzing the company’s bylaws before approving the registration process.
Step 07: Bank account set up
To register the final RUT before DIAN, you must open a bank account in the company’s name Keep in mind that banks allow new businesses and companies to open a bank account, only if they have the registered name and the Pre-RUT has been completed.
Once you obtain the bank certificate, you must go to DIAN to process the company’s final RUT.
Step 08: Present the final RUT to the Chamber of Commerce
This point is one of the most important in the process of incorporating companies in Colombia because with the presentation of the RUT before the Chamber of Commerce, the existence and legal representation of your company or business is verified and certified, which will allow you to gain official status.
Step 09: Obtain the billing authorization
The billing authorization is a document that allows you to charge for the services provided, that is, the contracting activities and presentation of products or services; It is important that you know that you must request it electronically from DIAN.
Step 10: Register the books at the Chamber of Commerce
By completing the registration, you will be able to receive all the tax benefits. Remember that the books of the shareholders and the minutes need to be books registered before the Chamber of Commerce. To guarantee the correct management of these documents, we recommend the advice of a professional accountant.
Colombia company formation procedures
If you are a foreign entrepreneur looking to start a business in Colombia, it’s essential to understand the legal requirements and procedures involved. Starting a company here means dealing with several administrative steps and public entities to ensure proper registration.
Although this may sound complex, our team at JLC Auditors simplifies the process for you. We guide you step by step on how to set up a company in Colombia — from initial documentation to final approval — making sure your business complies with all legal standards.
In Colombia, company formation is regulated by national authorities and requires the execution and submission of specific documents
Company registration in Colombia:
Required documents and legal procedures
Throughout the company registration process in Colombia, entrepreneurs must compile a comprehensive set of documents, including identification records, proof of address, and corporate bylaws. In Colombia, the process to register company Colombia entails a meticulous compilation of essential documents and adherence to a series of legal procedures designed to ensure the legitimacy and transparency of business operations.
Among the key documents required are photocopies of the identification cards (cédulas) of the legal representatives, the company’s registration with the Colombian business registry, the Pre-RUT (preliminary tax identification number), and documentation regarding the company incorporation in Colombia. Additionally, the Pre-Matricula mercantil, which is a preliminary commercial registration, is crucial for starting a company in Colombia.
This comprehensive documentation framework is foundational for navigating Colombia’s regulatory landscape, underscoring the importance of accuracy and completeness in fulfilling all legal prerequisites for business establishment.
Entrepreneurs embarking on the journey of company formation in Colombia often face various challenges, including bureaucratic delays and potential discrepancies in documentation.
The complexity of legal requirements and compliance standards necessitates a thorough understanding and meticulous attention to detail. To mitigate the risks associated with these challenges and to facilitate a smoother registration process, entrepreneurs are advised to adopt proactive measures and seek strategic solutions.
This might include consulting with legal experts specialized in Colombian corporate law, leveraging professional services for document preparation and submission, and staying abreast of any changes in registration procedures. By strategically navigating these hurdles, entrepreneurs can enhance their chances of success, ensuring their business operations commence on solid legal and regulatory ground.scing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
To take into account in the
opening of companies in Colombia:
Download, fill out and organize all the documentation required
by the entities, such as:
RUES form
Bylaws
Legal representatives
ID copies.
Pre-RUT
Mercantile
Pre-Registration.
If you have doubts about the process,
you can always present to the Chamber of Commerce or make an online consultation, as well as having the support of an expert team on tax, accounting and tax issues is very helpful
Take into account the pre-approval process after filing the documents,
three days later you can verify the status of the process online. If accepted, ask for an appointment at DIAN offices to take the final steps of the process.
01
Do not miss your
appointment with DIAN
Because if you fail, your company will be in the system as pre-approved.
02
Request your RUT and
electronic signature online and synchronize it
Remember, the electronic signature is only assigned to individuals.
03
Get your
billing authorization
You can choose between: you can choose between, electronic billing, electronic ticket.
Timing to keep in mind for setting up a company in Colombia
To improve your process, we will list below the necessary procedures for the incorporation of companies in Colombia and its timing:
| Procedures | Time |
|---|---|
| Registration of the company name with the Chamber of Commerce: | 1 day. |
| Articles of incorporation and bylaws of the company: | 1 day. |
| Registration of the company: | 1 day. |
| Certificate of existence and legal representation issued by the Chamber of Commerce: | 1 day. |
| Tax identification number (NIT): | 1 day. |
| Bank account in the name of the company and deposit of capital: | 1 day. |
| Procedure | Time |
|---|---|
| Registration with the Municipal Tax Administration: | 1 day. |
| Company registration for payroll taxes | 2 days. |
| Registration to Professional Risks: | 1 day. |
| Registration to pension entities | 5 days. |
| Enroll workers in the national health system | 5 days. |
| Process the health and hygiene certificate at the Health Municipality | 15 days. |
| Firefighters certificate: | 18 days. |
| Announce the opening of physical establishment to Municipality: | 1 day. |
Remember, the clarity and control in the execution of the business registration procedure in Colombia must be reviewed carefully to avoid mistakes as much as possible and speed up the process before the competent entities, therefore it is always crucial to have proper advisory and the best team of professionals.
OPENING A BANK ACCOUNT
Opening a bank account when registering a new company in Colombia is essential for legal compliance, financial management, and operational efficiency. Legally, it ensures adherence to financial regulations, accurate tax reporting, and facilitates audits, thus maintaining transparency and regulatory compliance.
Financially, a dedicated business bank account helps in managing cash flow, payroll, and expenses efficiently, separating personal and business finances for clarity in accounting. It also provides access to essential financial services like loans and credit lines, which are crucial for business growth — particularly for those starting a business in Colombia.
Additionally, a business bank account enhances the company’s credibility and professionalism, building trust with clients, suppliers, and investors. It simplifies transactions, integrates financial services, and offers security for business funds, including fraud protection. For businesses involved in international trade, it facilitates currency management and global partnerships. In summary, a business bank account is a foundational step for legal compliance, efficient financial management, and the overall growth and stability of a new company in Colombia.
LABOR / PAYROLL COMPLIANCE
In Colombia, employment contracts are primarily classified into three types: fixed-term, indefinite-term, and specific project contracts. Fixed-term contracts have a defined duration, typically lasting up to three years, and can be renewed. Indefinite-term contracts have no specified end date, offering greater job security to employees. Specific project contracts are designed for tasks that are limited in time and scope, ending once the project is completed. All contracts must be formalized in writing, outlining the terms of employment, responsibilities, and compensation.
The minimum wage in Colombia is set annually by the government and serves as the baseline for all salaries. The minimum wage reflects the cost of living and inflation rates to ensure that workers receive fair compensation. In addition to the base salary, employees earning up to twice the minimum wage are entitled to a transportation allowance. Employers must comply with these regulations to ensure fair pay and avoid legal penalties.
Overtime work in Colombia is strictly regulated. Employees who work beyond the standard 48-hour workweek are entitled to additional pay. Overtime is compensated at a higher rate, with a 25% increase for regular overtime and a 75% increase for night work, Sundays, and public holidays. These regulations are designed to protect workers’ rights and ensure fair compensation for extra hours worked. Employers must meticulously track and compensate overtime to remain compliant with labor laws.
Frequent questions about set up a company in Colombia
Today we will briefly talk about the questions that are most frequently asked about the incorporation or registration of companies in Colombia. We are sure they will be very useful to you.
It depends on the type of company. If we refer to a SAS company, usually when the shareholders are physically present in Colombia, it takes 3 days tops. However, times can vary significantly if partners are not in the country. With JLC, you can set up a company Colombia in just 15 calendar days.
If you need to register a subsidiary Colombia or a Foreign Branch, the times are considerably extended due to the procedures before notaries and other organizations. The registration time is 45 days on average from the moment in which all the documents have been satisfactorily received.
In case of setting up a business in Colombia or registering a SAS entity, the documents required if JLC takes care of the process are valid passport of the shareholders and legal representatives and the bylaws. There is additional information that is mandatory such as: fiscal and commercial address, name of shareholders and legal representatives, name of the company, accounting group to which it belongs, description and code of economic activity, capital to be registered, among others.
We also clarify how to Colombia company registration works in practical terms to ease your process.
It’s absolutely possible. Through JLC you will be able to carry out all the procedures digitally and you will only have to review the emails that we send you periodically for your approval. At the end, we will give you all the documents that prove the creation / registration of the new company, allowing you to register a business Colombia without being present.
JLC has a large number of clients that will be delivered as part of our commercial offer. In addition, you will be able to consult all the registrations online to verify that the registrations have been successful. Whether you plan to incorporate company Colombia or just want to understand the full company registration Colombia process, we give you full transparency.
The company can indeed register several economic activities. You will be able to indicate to our team of experts which activities you wish to register so that they are clearly identified in the commercial register. At JLC we will help you with the complementary procedures to apply correctly to the activities you want to register, even if you are starting a company in Colombia from abroad.
Registration costs are directly related to the value of the capital you expect to register. This amount is regulated by the rates published by the Chamber of Commerce which you can consult online. The fees that JLC estimates for the company formation Colombia can be found in the “Fees” section of our website.
There’s no need. However, through JLC you will be able to find a service so that there is a representative of your company in case of being required for any contingency.
It’s possible. JLC will help you to open / register your bank account. We have commercial allies in some banking entities that will facilitate the registration process. Usually, it takes a maximum of 15 days to register and enable the online banking platform. We also guide on invoicing requirements of a foreign company Colombia to ensure full compliance.
It is absolutely possible. Foreigners with a valid passport will be able to create / register a company without any inconvenience. There are no restrictions on this, and JLC handles all procedures related to company incorporation Colombia.
Usually, there are no maximum or minimum amounts. However, for some companies with specific economic activities, there may be minimum capital requirements, as well as legal permits to operate. This is especially relevant when considering how to set up a company in Colombia based on your business goals.
Step 11: Make the registration in the Social Security system
Finally, one of the indispensable requirements for the registration of companies in Colombia and, above all, to start with the hiring of employees, is the registration in the Social Security system, this allows your company to guarantee coverage to its personnel against accidents, invalidity or health problems.