How to start a business in Colombia

How to start a business in Colombia

Entrepreneurship helps to reach self-fulfillment besides has an impact on society, so it is necessary to structure and prepare the needs before starting up the business, these steps avoid learning through bad experiences all the multiple obligations that establish a business implies. In this article, we will provide some tips that every entrepreneur should keep in mind

A financial model will shed light on the resources you will need

If you know about the business but are uncertain about the numbers, it is best to know the number of resources that will be required for the operation and establish a company, a financial model will shed light on the investments that the business requires in particular, since tackle in a customized way the needs of assets, human resources, taxes, and cash flows expected of the business, consulting with a financial advisor is the best option at this stage.

Do I need an attorney to start a business?

With the facilities that the Colombian government has implemented in reducing the number of procedures to company formation, the cumbersome procedures that were previously carried out by attorneys decreased, allowing professionals with legal training to help you in this process.

Evaluate the appropriate legal structure and define the tax regime

The SAS (simplified stock companies) is the most popular legal structure in Colombia, but before choosing it, is essential the knowledge of the project just to decide if it is the most appropriate to establish the company for instance if the business requires special government permits and some licenses, the comprehension of the requirements will avoid procedures that include transformations of the company or increases in capital to the minimum required.

Belonging to the Simple Tax Regime allows you to have an advantage in taxes, also facilitating the management of withholdings, however, its adoption is limited to certain activities, income, and residence of the shareholder.

Establish a company at the chamber of commerce and register at government entities

Once the steps for the company formation have been taken, such as; availability of the name, the economic activities to be developed, and having a draft of the company's bylaws, all that remains is going to the local chamber of commerce, the cost for start a business in Colombia, are related to the capital in a table range according to the amount, plus the forms, the procedures at government entities have no cost.

Get more details on the steps of how to start a company here.

Learn about labor and tax framework

At the moment of starting a company, the obligations also start, the most important compliance concern is related to taxes, payroll compliance and also implies the need for the correct application of the labor framework, so the help of an accountant is essential throughout life company.

Consult us, we accompany you in the different stages, so, you if you are going to start a company in Colombia, will be in a successful way.