Why and how to invest in Colombia

Why invest in Colombia?

Thanks to the general growth of the economy in Latin America and a narrowing gap in social inequality, investing in Colombia has become very attractive to international investors in recent years. In addition to this phenomenon of investor confidence, Colombia has improved its public image since it has focused on eliminating its internal conflicts. This has further enhanced the perception of the country as a stable business opportunity and has given investors one more reason to invest in Colombia.

On a global scale, these are some of the reasons why it is worth investing in Colombia sooner rather than later:

-Economic stability: The Colombian economy has maintained an average growth of 4.8% during the last five years, also a GDP growth above the estimated average for Latin America.

-Investor confidence: In 2014, Colombia went from Baa3 to Baa2 in Moody’s rating system, which has also been endorsed by Standard & Poor’s and Fitch.

-Investor protection: According to Doing Business 2015 published by the World Bank, Colombia ranked tenth worldwide and first in Latin America in terms of investor protection. The same report recognizes that the country is the friendliest destination in Latin America to do business.

-International market: Colombia currently has 10 free trade agreements and 3 pending agreements in preparation, which give preferential access to more than 45 countries and around 1,500,000,000 consumers in markets located in the United States, European Union, Brazil, Mexico, Chile and Peru; and soon with Costa Rica and Korea, nations with which Colombia is currently negotiating.

-Skilled Workers: According to the IMD 2014 ranking, Colombia has the most qualified job in all of South America. Colombia surpasses countries like Brazil, Chile, Peru, Argentina and Venezuela.

-Competitive legal structures: Colombia is a benchmark in Latin America for the reforms it has implemented for business development. Since 2005, the country has implemented 29 reforms supported by the World Bank’s Doing Business 2015 publication.

So how do you establish a company in Colombia?

There are several types of companies available to suit every type of business and need, but the most popular is a SAS company, which is a “Simplified Limited Company”. Establishing this type of business in Colombia is relatively simple, fast, and well suited to most business needs. Therefore, only one person is needed to register the company, although a legal representative must be appointed who is of Colombian or foreign nationality with the corresponding visa. This type of company allows you to operate freely, without currency controls or restrictions. Also, with a SAS company, shareholders are only personally liable if there has been proof of fraud, as such there is no personal liability for corporate actions, including labor disputes, tax issues or other litigation that may arise with the operation of the company.

The entire process to establish a SAS normally takes between two and three weeks (plus one more week to open a company bank account), but it also depends on the complexity of the company, the availability of relevant personal documents and that of the owners. founders. . With a SAS, founding members may also be eligible to apply for a visa in Colombia, allowing them to stay in Colombia while businesses are operating, assuming they make a sufficient investment that is aligned to a minimum of 100 times the legal minimum wage. Colombian. (At the time of writing, this is roughly $ 21,000.) In most cases, a SAS company is the best commercial vehicle for business operations in Colombia, as it offers maximum flexibility, limited personal liability, and a way to obtain a visa to stay in Colombia.

If you want more information about this type of company and its process, do not hesitate to contact us. Our team is ready to answer all your questions and assist you in setting up your company and starting your business.