The Colombia simplified limited company (SAS)
- The Colombia SAS is one of the favorite business entity opted by our clients for establishing businesses in Colombia. A SAS needs only one director and shareholder who may either be an individual or a legal entity. The director and shareholder may be of any nationality and may be resident of any country. A paid-up capital of at least USD1 is also needed for the completion process of registration.
- This enterprise is only needed to appoint a legal auditor by law only if;
- The entity has assets of above USD 1,655,000 or
- Its annual sales are above USD 994,000. The SAS shall appoint a minimum of one statutory agent who can represent the company and the agent shall be a local resident of Colombia.
The Colombia limited liability company (Ltda.)
- The Colombian Ltda. needs a minimum of two shareholders who can be individual or business entities for its registration. A Ltda. shall also appoint at least two directors who can be an international resident or a local Colombian resident. A Colombian citizen who shall be permanently residing in Colombia shall be appointed as the entity’s statutory agent in Colombia;
- Usually this business type is not required to the appointment of a legal auditor until either
- Its total assets are above USD 1,655,000 or
- Its yearly Sales are above USD 994,000.
The Colombia public limited company (SA)
- The Colombian SA need a minimum of five shareholders who may be individuals or business entities to be registered. An SA shall appoint a minimum of six directors who may be a citizen of any country and shall not necessarily be a Colombian residing person. A SA shall appoint a minimum of one Colombian resident, who shall be a permanently residing person, as a statutory rep of the company. For the incorporation of an SA a minimum of 33% of the projected company’s share capital shall be paid at the time of registration;
- A legal auditor shall be appointed by a Colombian SA.
The Colombia branch
- The Colombian Commercial Code allows foreign business entities intending to setup permanent economic activities in Colombia to start a Colombian branch. The extent of activities of the branch of an international company is identified by the parent company. This branch shall appoint minimum one permanently residing Colombian, who can be of a local or foreign citizen, to act as the legal representative in Colombia. Moreover, a legal auditor shall be appointed by the branch of the foreign entity. This entity undergoes greater business tax-rate of 33%.
The Colombia representative office
- A representative office in Colombia is not considered a legal entity and is not permitted to do any income earning events in Colombia. A representative office shall appoint minimum 1 statutory representative who shall be a local person of Colombia. The rep office is authorized to be involved in marketing and publicity events of goods and amenities of the holding company in Colombia.