What international financial regulations exist in Colombia?

One of the best alternatives for positioning Colombia in the international arena to partially improve the quality of life of Colombians is to maintain adequate standards of protection for foreign investment in Colombia as an element that contributes to the growth and development of the country.

Foreign investment in Colombia, protection standards and accounting advice Bogota

Foreign investment constitutes the allocation of resources under the assumption of a risk in order to obtain advantages or benefits in the future, when it comes to funds from abroad and from a foreign citizen. It can take the form of capital, movable and immovable property, shares and participations in companies, including intellectual property rights. Public debt operations, obligations arising from commercial contracts and credits granted in the framework of financial transactions are excluded.

The expert level of Accounting Advice considers that there is a great variety of investment opportunities in Colombia due to the security and profitability guarantees it offers.
On the other hand, the Accounting Advisory in Bogota emphasizes that one of the advantages for foreign investors who wish to invest in Colombia is its strategic location in terms of its connection with the Pacific and Atlantic oceans and its easy access to markets worldwide.

However, to make an investment in the Colombian country with foreign capital, the collaboration of a professional is required to evaluate the factors that influence to invest in the appropriate business. That is why the Colombian Accountant is considered a classified human resource due to the ability to provide the necessary advice that a foreign investor needs.

Obligations incorporated in international investment agreements

In Colombia there are several international investment agreements, such as those indicated below.

Investment promotion

Colombia’s commitment is to promote investment by States with which it has signed international agreements. To do this, an effort must be made to reduce or not impose obstacles that may be technical, legal or administrative that prevent the establishment of the investment.

Investor treatment standards

This takes the form of obligations typically related to the principle of equality. The main agreements are as follows.

• National treatment: implies giving foreign investments a treatment not inferior to that given to national ones.
• Most-favored-nation treatment: Colombia grants the advantages accorded to investment movements made by a certain State to those of another with which it has an All (National Investment Agreement).
• Minimum level of treatment: it conforms to the standard of international practice, that is, the one generally granted to other States, with the certainty that they are obliged to respect.

Protection of foreign investment

The State is committed to respecting private property and foreign investment. Consequently, any illegal interference in the property rights of foreign investors is prohibited not only by the Alls, but also by the Political Constitution of Colombia.

The expropriation can only be carried out for reasons of public utility or social interest.
Likewise, it has the obligation to compensate the investor for the damages caused, which will be paid without undue delay, in a payable and transferable manner, including interest at a rate in accordance with the market value.
Similarly, when there is a disturbance of public order, the State will pay compensation to investors subject to the criteria of national treatment and most-favored-nation.

Finally, it should be noted that the Colombian State has a legislature that regulates the operation of foreign investment, guaranteeing compliance with the rules and obligations regarding foreign investment.