How to establish your company in Colombia: A practical guide

Do you want to start a business in Colombia? Here we tell you everything you need to know to make it legal and efficient.

If you’re a foreign individual looking to invest or start a business in Colombia, you’re in the right place! Setting up a company here is straightforward, and with the right documents, your business can be up and running in no time.

Here’s a basic step-by-step guide to help you set up your company as a foreign individual in Colombia.

1. Choose the right type of company

In Colombia, the most common legal structure used by both local and foreign entrepreneurs is the Simplified Stock Company (S.A.S.), due to its flexibility, low start-up cost, and the possibility of having just one shareholder.

Other alternatives include the Limited Liability Company (Ltda.) and the Corporation (S.A.), though they involve more formalities.

For most individuals, the S.A.S. is the best fit.

2. Prepare the required documents

As a foreign individual, you will need:

A valid passport
If you’re in Colombia: a copy of your entry permit, visa, or foreigner ID (cédula de extranjería)
Basic information about your company: proposed name, business address, business activity, initial capital, and the name of the legal representative (which can be yourself)

3. Draft and sign the company bylaws

This document outlines how the company will operate: its legal representative, capital, decision-making process, etc. In a S.A.S., this can be done in a straightforward and flexible manner, without complex formalities.

4. Sign the incorporation document

If your company has assets over 500 minimum wages or more than 10 shareholders, a public deed is required.
In most individual cases, a private document signed by you or your attorney is enough.

5. Register the company at the Chamber of Commerce

You (or your representative) must register the company at the Chamber of Commerce where the business will operate. This includes:

Submitting the signed incorporation document
Filling out the commercial registration form
Paying the applicable fees

Once registered, your company will legally exist in Colombia.

6. Get your Tax Identification Number (RUT)

After registering your company, you must obtain the RUT (Single Tax Registry) from the DIAN (National Tax Authority). This gives you a NIT (Tax ID Number) required to issue invoices and file taxes.

This process can be done by the legal representative or through a legal proxy.

7. Open a business bank account

With the company officially created and your RUT in hand, you can open a corporate bank account in Colombia. Requirements vary by bank but usually include:

Certificate of existence and legal representation
Tax ID (RUT)
ID of the legal representative

8. Register accounting books and, if applicable, appoint a statutory auditor

If your company exceeds certain thresholds in revenue or assets, you must keep accounting records and register accounting books (Journal and Ledger) with the Chamber of Commerce.

In some cases, you may also need to appoint a statutory auditor, though this is not required for most small businesses.
This process can be done by the legal representative or through a legal proxy.

9. Register your foreign investment (optional but recommended)

If you’re transferring funds into Colombia to start your business, you can register the foreign investment with the Central Bank (Banco de la República). This protects your ability to repatriate capital and earnings in the future.

What’s next?

You’re now ready to operate! You can issue invoices, hire employees, import goods, or offer services from Colombia to the world.

Need help with the process or looking for tailored guidance?

We assist foreigners in setting up and managing their businesses in Colombia — from legal setup and tax registration to accounting and beyond.
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