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How to start a business in Colombia: Requirements and steps
Find out about all the legal and administrative requirements you need to meet in order to start a business in Colombia in 2026.
Colombia ranks among the best-positioned Latin American countries strategically, which undoubtedly represents a major advantage if you’re considering opening a new company there or expanding your horizons with an already established business.
With only 4 hours separating it from cities like Miami in the United States and approximately 6 hours from Buenos Aires, Argentina, Colombia offers excellent mobility for travelling quickly across the continent to conduct business.
Therefore, in this article, we’ll explain in detail which costs you must cover to incorporate a company legally, the most suitable legal structures for foreign entrepreneurs, and the main tax requirements you must meet before local authorities.
Additionally, we prepared a step-by-step guide to the administrative process that will help you formalise your business successfully while following every essential legal requirement. Let’s begin!
1. How Much Does It Cost to Open a Company in Colombia?
To give you an idea of incorporation costs in Colombia, administrative fees remain competitive compared with European or Middle Eastern countries.
Currently, the costs are divided into two main areas: Commercial registration fees and notary fees. The commercial registration fee works progressively and depends on the company’s capital or total assets, measured in Basic Value Units (UVB), which in 2026 equal $11,552 COP (€2.55/$3).
For example, a small company with assets up to $2,000,000 COP (€441/$550) may pay an approximate registration fee of $40,000 COP (€8.82/$11), while larger asset values increase the fee proportionally.
Besides registration fees, you must also consider document filing charges, which may cost around $73,000 COP (€16.11/$20), while the RUES form costs approximately $8,500 COP, just over €1.88/$2.
However, if you choose to incorporate a Simplified Joint-Stock Company (S.A.S.), public deed formalisation isn’t mandatory, which generates significant savings on notarial fees that usually range between €70.40 ($80) and €237.60 ($270), depending on share capital.
Keep in mind that most company structures don’t require minimum legal share capital, and you only declare the amount instead of freezing it within a bank account before registration.
Nevertheless, if you intend to apply for an Investor Visa, the contributed capital must equal or exceed 100 minimum salaries, representing approximately €26,400 ($30,000), which does require subsequent bank certification.
2. Which Types of Companies Can You Open in Colombia?
Colombia offers different legal structures, although some provide greater advantages. Below, we explain the most important options:
We’ll begin with the Simplified Joint-Stock Company (S.A.S.), which remains the most recommended structure for foreigners, because it simplifies corporate regulations and allows one person alone to incorporate the company, whether a natural or legal person.
Additionally, it offers indefinite duration and a broad corporate purpose. It’s ideal for startups and digital services, functioning similarly to an LLC in the United States, for example.
Other options include the Limited Liability Company (Ltda.), where partners may range from 2 to a maximum of 25, and each partner remains liable only up to their contribution amount.
You may also choose the Public Limited Company (S.A.), which requires at least 5 shareholders and a stronger “governance” structure with a mandatory board of directors. This structure is usually optimal for large corporations.
For companies already established abroad and that intend to move to Colombia, there is the figure of the Foreign Company Branch, which is not a separate legal entity from the parent company, but requires an attorney-in-fact with legal residence in Colombia.
3. Requirements for Starting a Business in Colombia
To establish your business successfully in Colombia, you must understand several administrative requirements clearly to avoid delays and unnecessary financial losses caused by unfamiliar procedures.
- Legal representation: Residency isn’t mandatory for becoming a company partner or shareholder. However, the Legal Representative must reside in Colombia or hold a valid visa allowing employment, together with a foreign identity card. If every shareholder remains foreign, they may appoint a local lawyer or consultant as temporary Legal Representative.
- Physical address in Colombia: Holding a registered address within Colombian territory remains essential for receiving formal judicial and tax notifications.
- CIIU code selection: You must identify the relevant economic activities under the International Standard Industrial Classification (CIIU). This becomes necessary for drafting company bylaws and requesting the Pre-RUT before the National Tax and Customs Directorate (DIAN).
- Ultimate beneficial owner identification: Following the 2026 international transparency standards for preventing money laundering, this identification remains a crucial requirement for determining the natural persons ultimately owning or controlling the company.
- Which procedures work online and which don’t?: You may begin the incorporation process online through the Chamber of Commerce website. However, opening the corporate bank account requires physical attendance in most cases.
4. Taxes for Opening a Company in Colombia
The Colombian tax system operates through full digitalisation, which simplifies procedures and enquiries for every taxpayer, especially companies, which must pay Corporate Income Tax currently maintained at a general rate of 35%.
However, special systems exist, such as the Simple Taxation Regime (RST), which combines several taxes and offers reduced rates for small and medium-sized businesses (SMEs) according to gross revenue.
On the consumption side, VAT applies a general rate of 19%, covering goods sales and service provision. Colombia also applies the Industry and Commerce Tax (ICA), a municipal tax varying according to each city.
For example, in Bogotá, Colombia’s capital, rates range between 0.2% and 1.1% of net income. Finally, dividends distributed to foreign shareholders remain subject to withholding tax, although rates may decrease when double taxation agreements (DTAs) exist with the investor’s country of origin.
5. Steps for Opening a Company in Colombia
In this section, we’ll show you a step-by-step guide structured to help you maintain an organised and efficient process, which will accelerate your company incorporation in Colombia.
It’s important to understand that the main authority managing every procedure is the Chamber of Commerce, which operates a system called the Single Business Window, helping centralise your procedures and obtain approval within only a few working days.
1. Verify That Your Brand Name Isn’t Already Registered
Before drafting any document, you must enter the RUES portal – (Single Business and Social Registry) to verify that another company isn’t already using your chosen name. This step remains essential for preventing legal rejection during registration.
2. Draft the Company Bylaws
You must prepare the private incorporation document defining the company name, registered address, business purpose, subscribed and paid capital, and management rules. For S.A.S. structures, this document only requires shareholder signatures and authentication.
3. Request the Pre-RUT
Through the DIAN website or directly at the Chamber of Commerce, you must request the Pre-RUT. This document identifies the company “under formation” and remains necessary for processing commercial registration.
4. Registration Before the Chamber of Commerce
Submit the company bylaws, the RUES form, and copies of identity documents before the Chamber of Commerce in the city where you’ll operate. After paying the registration fees, the authority will issue the Certificate of Existence and Legal Representation, which grants the company legal status.
5. Open the Corporate Bank Account and Obtain the Final NIT
With the Chamber of Commerce certificate, you must visit a bank to open the corporate account. Once activated, the DIAN will convert your Pre-RUT into the final NIT (Tax Identification Number), enabling the company to issue electronic invoices.
6. Internet for Business Trips to Colombia
Currently, internet access remains the main tool for completing every procedure when incorporating a company in Colombia, because, as you noticed, several procedures happen online.
Therefore, we always recommend maintaining a secure and reliable connection like the one offered by Holafly through its monthly plans. These plans allow you to travel across more than 160 destinations worldwide without changing your eSIM in every country.
Additionally, it solves internet connectivity issues easily for your other devices because it allows data sharing through the hotspot feature.
Choose between unlimited data or 25 GB and also enjoy the Always On benefit, which gives you 1 GB monthly for life with coverage across more than 70 countries whenever you cancel your plan or exhaust your data allowance.
7. Frequently Asked Questions About Opening a Company in Colombia
No, companies in Colombia may hold 100% foreign capital and consist entirely of non-resident partners.
It represents the International Standard Industrial Classification, so you must choose the codes describing your business activity because these determine your tax responsibilities and the cost of certain insurance policies or licences.
Yes, every legal entity in Colombia must maintain accounting records under IFRS standards and submit tax declarations signed by a qualified public accountant.
Registration before the Chamber of Commerce usually takes between 24 and 48 working hours, although opening the corporate bank account may extend between 1 and 2 weeks, depending on the bank’s compliance requirements.
Yes, as a foreigner you may incorporate the company using your passport. However, to act as Legal Representative or open the corporate bank account, authorities usually require a foreign identity card or a business or investor visa.
