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General Guide to Starting a Company in Colombia from Abroad
By Andres Platts · 4 min read
Are you considering expanding your business and diversifying your investments? Colombia has become a strategic destination for foreign entrepreneurs and investors thanks to its location, economic growth, and investment-friendly policies. If you're interested in starting a company in Colombia from abroad, this guide will walk you through everything you need to know: requirements, benefits, steps, and real opportunities.
Why Start a Company in Colombia if You Live Abroad?
Colombia not only offers a growing economy but also facilitates foreign investment through increasingly digital processes. From sectors like tech, agroindustry, healthcare, or commerce, opportunities are open for entrepreneurs from Mexico, Spain, Peru, and other regions to operate legally and securely from their home countries.
Main Advantages:
- You don’t need to live in Colombia to be a shareholder.
- You can operate with a local legal representative if you don’t want to travel.
- Strong logistical and digital connectivity.
- Tax incentives in specific zones.
Check official sources such as ProColombia and Gobierno de Colombia for more details on foreign investment.
Requirements to Start a Company in Colombia as a Foreigner
Requirements may slightly vary depending on the company type, but in general, you’ll need:
- Valid ID (color-scanned passport)
- Choose the company type (e.g., S.A.S.)
- Legal address and representative in Colombia
- RUT (Tax Identification Number)
- Local bank account (required after incorporation)
You don’t need a visa to form a company, though you do need one to act as a legal representative. The business or partner visa is most commonly used. Requirements are available on The Foreign Ministry website ( Cancilleria ).
Most Common Company Types for Foreigners
The most recommended type for foreigners is the Simplified Joint Stock Company (Sociedad por Acciones Simplificadas -S.A.S.) for its flexibility, low cost, and fast setup. Other options include
- Limited Subsidiary (Filial Limitada)
- Branch of a Foreign Company (Sucursal de sociedad extranjera)
Prodezk Tip: If you plan to start alone or with a few partners, the S.A.S. will be the right choice. It allows remote formation through a third party, offers limited liability, and has minimal formal requirements.
Steps to Register Your Company in Colombia
Starting a company in Colombia is simpler than it seems. Here are the basic steps:
You don’t need a visa to form a company, though you do need one to act as a legal representative.
- 01Verify trade name availability on RUES
- 02Structuring by-laws or articles of incorporation
- 03Register with the Chamber of Commerce (Cámara de Comercio)
- 04Register the RUT with the DIAN (tax authority)
- 05Open a corporate bank account
- 06Register for social security (if applicable)
All of this can be managed remotely with local advisors.
Benefits of Investing in Colombia as a Foreigner
- Growing market: Over 50 million people with high demand in sectors like tech, health, fashion, and food.
- Free trade agreements with over 60 countries
- Free zones with tax benefits.
- Competitive operational costs.
Additionally, Colombia has improved its international reputation as a business-friendly country according to Doing Business.
What Taxes Does a Foreign Company Pay in Colombia?
All companies must meet tax obligations. Key taxes include:
Prodezk supports you with the tax calendar and annual report submissions.
Can I Open a Bank Account from Abroad?
Yes, although it depends on the bank. Many allow digital pre-registration, but may require a final in-person signature. Prodezk can assist with this process by acting as your local contact and providing legal and operational support.
What Support Does Prodezk Offer?
At Prodezk, we guide you through every step:
- Legal incorporation of your company (S.A.S.)
- Local legal representation
- Registration with (Chamber of Commerce)Cámara de Comercio and DIAN
- Corporate bank account setup
- Tax advice and legal compliance
- Accounting and administrative services
Our team specializes in helping foreigners invest in Colombia securely and efficiently.
FAQs: Starting a Company in Colombia as a Foreigner
Can I open a company without being in Colombia? Yes. With a local legal representative, the process can be done remotely.
What type of company is best for a foreigner? S.A.S. is the most flexible, ideal for entrepreneurs or investors.
Do I need a visa to open a company? No, but you do need one to act as the legal representative.
Can I invoice from abroad using a Colombian company? Yes, as long as you meet tax and banking obligations.
Can I open a bank account without traveling to Colombia? Some banks offer hybrid processes. Prodezk can support you with this.
Ready to Start Your Company in Colombia from Abroad?
Book a free consultation with our expert team and we’ll guide you step-by-step to incorporate your business smoothly, with legal and tax support.
Contact with us today and create your company in Colombia with security and support.
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