10 Things to Know About Starting a Business in Colombia

10 Things to Know About Starting a Business in Colombia

The economy in Colombia is on the rise with unemployment beginning to fall. That’s why starting a business in Colombia right now is a great idea.

But what should a person know before getting started with a business in Colombia? What steps need to be taken?

Read on to learn the 10 things you should know about starting a business in Colombia.

1. Who Will Help You Register Your Business?

You will need to work with three different institutions in order to register your business in Colombia.

The first is the Chamber of Commerce. It regulates the formation of new businesses in Colombia.

There’s also Departamento de Impuestos y Aduanas Nacionales, or DIAN. DIAN will put your company in Colombia’s tax system and issue you your own specific tax number.

Lastly, visit a bank of your choosing. Click for more specific details.

2. Forms and Fees at the Chamber of Commerce

Obtain the forms you need either online or onsite at the Chamber of Commerce. When you arrive at the Chamber, ask for help with registering your business at the information desk.

Hand in the completed forms and provide photocopies of IDs for the business owners, business partners, and any legal representatives.

After the documents are approved, pay the inscription fees.

3. Pre-RUT Form

You must fill out a Pre-RUT form. You can find this on DIAN’s website.

A Pre-RUT form can be complicated to fill out. Don’t hesitate to ask for help from those at the Chamber of Commerce.

4. Business Bank Account

When the Pre-RUT form is ready, open a business bank account.

You can do this with the form, a copy of your legal representative’s ID, and a letter that details who the account’s manager will be.

5. NIT

Once you have received a bank account certificate, take it to the DIAN office with a copy of the legal representative’s ID. DIAN will give you and your legal representation each your own tax ID number, also called NIT.

Bring the NIT to the Chamber of Commerce to complete your registration.

6. Accountant

After your registration is complete, hire an accountant.

He or she will be more familiar with how businesses work in Colombia and can help walk you through filing the country’s taxes.

7. Trademark

Trademarks are important for countless reasons.

Be sure to register your business’s trademark with Colombia’s Ministry of Commerce, Industry, and Tourism.

8. Local Market Size

Colombia’s current population is over 49 million people. It’s the second largest market in South America.

Its last officially recorded GDP per capita is $7,600. The economy grew 2.2 percent year-on-year in the first quarter of 2018, an increase from the previous growth period’s 1.8 percent.

9. Security

In recent years, Colombia’s government has invested more money in police recruitment and increasing security.

In 2017, the United States gave Colombia $450 million in aid to help improve security in the area. Thanks to this funding, it’s even safer to do business in the country.

10. Location

Colombia is a great location for markets in North, South, and Central America. It is located right in between the two main continents and has 1,800 miles of coastline.

The country also has ports on both the Pacific and Atlantic Oceans. These ports connect to 3,710 routes throughout the world.

Moving Forward With Starting a Business

There are many advantages to starting a business in Colombia.

However, it’s vital to know these key details before moving forward with it. Keep all of these factors in mind when establishing your company.

Do you have any questions about this article or our services? If so, please contact us today so we can help!

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