Get Ready to Set Up Your Local Independent Company in Colombia
The commercial jurisdiction of Colombia has evolved greatly due to the interest of public and government leaders as this country has abundance of natural resources and strong incentives. This has attracted the foreign investments which has increased the economy of the country. Colombia is focusing on the foreign investments and the business opportunities which is another important factor which has attracted the foreign business. This strong support from Colombia thus make it stable for the businessmen to invest here and make business. If you want to explore business opportunities in Colombia, then you must decide if you want to set up a branch office or establish a local independent company in Colombia.
Branch Office of a Foreign Company
To set up a branch office in Colombia, the company must deeply understand the following:
- Branch office is the legal extension of the company, it cannot work independently
- The tax of the income generated from the parent company and the branch office is both liable for tax payments
- The branch office must file all the necessary documents regarding account books
- The profits of the branch office made is treated as dividends by the parent company
- Appointing an auditor is mandatory for any company set up in Colombia
- The company must have minimum 2 shareholders who needn’t be the residence of Colombia and they can be neutral or legal persons.
- Shareholders of the S.A type of legal entity structure are liable for any cases of fraud
- The tax of this structural company is made from the profits made
- An auditor must be appointed.
Simplified Stock Company (S.A.S)
- This form of company must have minimum of 1 share holder
- The company has the right to set up different varieties of share thus the shareholders hold different rights
- A public accountant from external source must be appointed who will certify the annual accounts of the company
- The shareholders of the company are liable for the amount of share they hold in the company’s capital amount
- The capital of the company can be paid over a period of two years
Establishing an independent local company in Colombia is a simplified process which can be done successfully with the assistance of a local agent.