Set up a company in Colombia

Set up a company in Colombia

The incorporation and registration of companies in Colombia is a process that requires full attention and regulation because it will define the approval of your economic activity before the different national entities, so it is important to leave the process in expert hands.

Learn about the JLC Auditors method.

Procedures for setting up companies in Colombia

If you are an entrepreneur and you want to start your business incorporation process in Colombia, it is important that you take into account both the legal obligations to which you are subject and the protocols to be followed with the different public entities. Although the above sounds a little complex, our experts at JLC ​​Auditors want to share the step-by-step that you must follow so that your business or company meets all the requirements established by law.

Procedimiento para constituir empresa en Colombia

As we mentioned previously, setting up companies in Colombia is a process safeguarded by the regulations and regulatory institutions of the country, which requires the execution, completion and delivery of documents that allow it to be processed correctly before the law. To success you must:

Choose the name of your company

The name of your company or business is the initial form to identify yourself before the law and becomes the introduction of your activity to the public. To set it up you must enter the RUES or Registro Único Empresarial page and verify if the name you have planned is available in the database.
In case the name is already registered in the Chamber of Commerce, you must choose a new one that resembles what you need.

Determine your economic activity

It is important to determine in the database the type of activity to which your company refers, for this, you can check your CIIU economic activity classification through the website of the Chamber of Commerce.

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.

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.

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.

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.

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.

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.

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.
Trámites para la creación de empresas en Colombia

Fill out the Pre-RUT

The Pre-RUT is a certificate that allows you to apply to receive the NIT or Tax Identification Number, which is used to carry out the registration of taxpayer data in Colombia.

To acquire this certificate, it is necessary that you present the company’s bylaws, identification documents of the legal representatives to the Chamber of Commerce.

Registro de empresas en Colombia

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.

Incorporación de empresas en Colombia

Choose the name of your company

The name of your company or business is the initial form to identify yourself before the law and becomes the introduction of your activity to the public. To set it up you must enter the RUES or Registro Único Empresarial page and verify if the name you have planned is available in the database.
In case the name is already registered in the Chamber of Commerce, you must choose a new one that resembles what you need.

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.
Trámites para la creación de empresas en Colombia

Determine your economic activity

It is important to determine in the database the type of activity to which your company refers, for this, you can check your CIIU economic activity classification through the website of the Chamber of Commerce.

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.

Fill out the Pre-RUT

The Pre-RUT is a certificate that allows you to apply to receive the NIT or Tax Identification Number, which is used to carry out the registration of taxpayer data in Colombia.

To acquire this certificate, it is necessary that you present the company’s bylaws, identification documents of the legal representatives to the Chamber of Commerce.

Registro de empresas en Colombia

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.

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.

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.

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.

Incorporación de empresas en Colombia

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.

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.

To take into account:

Download, fill out and organize all the documentation required by the entities, such as:

Formulario Rues

RUES form

Estatutos

Bylaws

Fotocopia de las cédulas del o los representantes legales

Legal representatives ID copies.

Pre-RUT

Pre-RUT

Pre-Matricula mercantil

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.

Do not miss your appointment with DIAN

because if you fail, your company will be in the system as pre-approved.

Request your RUT and electronic signature online and synchronize it

Remember, the electronic signature is only assigned to individuals.

Get your billing authorization

You can choose between

  • Paper billing.
  • 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:

  • 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.
  • 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.

If you want more information or advice on your business incorporation procedure, contact us. At JLC ​​Auditors we are ready to help you.

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