How to Start a Business in Colombia as a Foreigner: A Step-by-Step Guide

Colombia has become an attractive destination for foreign entrepreneurs due to its strategic location, growing economy, and favorable business environment. Whether you’re looking to open a call center, tech startup, or e-commerce business, Colombia offers numerous opportunities. However, navigating the legal and administrative processes can be complex. That’s where Outsourcing to Colombia comes in—we provide expert guidance to help you establish your company smoothly and efficiently.

Step 1: Choose Your Business Structure

The first step is selecting the right legal structure for your business. The most common options include:

• SAS (Simplified Joint Stock Company) – The most flexible and preferred option for foreign entrepreneurs. It allows a single shareholder and has limited liability.
• SA (Stock Corporation) – Suitable for larger companies with multiple shareholders.
• LTDA (Limited Liability Company) – Best for small to medium-sized businesses with a limited number of partners.

For most businesses, SAS is the best choice due to its ease of incorporation and tax benefits. We can help you choose and register the best structure for your business needs.

Step 2: Register Your Company with the Chamber of Commerce

To operate legally, your company must be registered with the Chamber of Commerce (Cámara de Comercio) in the city where you plan to do business. The process includes:

1. Choose a unique company name – We check availability and register your business name.
2. Draft and notarize company bylaws – We prepare and notarize your company’s legal documents.
3. Obtain a Tax Identification Number (NIT) – This is issued by the DIAN (Colombian Tax Authority) and is essential for tax compliance.
4. Register with DIAN for tax purposes – We ensure your company is compliant with VAT, income tax, and other financial obligations.

Our team handles the entire registration process, ensuring a hassle-free setup.

Step 3: Open a Corporate Bank Account

A business bank account is necessary for handling transactions. To open an account, banks typically require:

• Company registration documents (from the Chamber of Commerce)
• Tax Identification Number (NIT)
• The RUT (Unique Tax Registry) of the company, linked to the RUT of the legal representative
• Proof of address and business activity

We assist in preparing the required documents and connecting you with banks that offer business-friendly services to foreign entrepreneurs.

Step 4: Hiring Employees and Compliance with Labor Laws

If your business requires employees, you must follow Colombian labor laws, which include:

• Minimum wage compliance – Adjusted annually by the government.
• Social security contributions – Employers must provide health insurance, pensions, and labor risk coverage.
• Contracts and benefits – Employees must receive paid leave, severance pay, and other benefits.

We provide HR and payroll management services, ensuring compliance with Colombian labor laws.

Step 5: Obtain Business Permits and Licenses

Depending on your industry, you may need specific permits before starting operations. Common licenses include:

• Health permits (for food and medical-related businesses)
• Environmental permits (for manufacturing or industrial activities)
• Commercial operation licenses

We help you secure all necessary permits and licenses to ensure your business operates legally.

Step 6: Pay Taxes and Stay Compliant

Once your company is operational, you must meet all tax obligations. The main taxes include:

• Corporate Income Tax – Typically 35% on net profits.
• Value Added Tax (IVA) – 19% on most goods and services (some exceptions apply).
• Payroll Taxes – Contributions for social security and benefits.

We offer accounting and tax advisory services to ensure your company remains compliant and optimized for tax efficiency.

Step 7: No Visa Required to Start a Business

Unlike in some other countries, a visa is NOT mandatory to register a company in Colombia. You can establish and operate a business without a residency permit. However, if you plan to live in Colombia and manage your business directly, you may explore visa options.

Our team can provide guidance on visa requirements should you need assistance in relocating.

Step 8: Marketing and Growing Your Business

Once your business is legally established, focus on growth strategies:

• Build an online presence – Create a website, social media pages, and digital marketing campaigns.
• Networking and partnerships – Join business associations and attend local events to connect with potential clients and investors.
• Offer bilingual services – If your target audience includes international clients, providing Spanish and English support can be a major advantage.

We offer marketing support and business development consulting to help your company grow.

Why Work with Outsourcing to Colombia?

Starting a business in Colombia can be a complex process, especially for foreign entrepreneurs unfamiliar with local regulations. Outsourcing to Colombia simplifies every step, from company registration to banking, HR, and tax compliance. Our services include:

✅ Company Registration Assistance – We handle all legal paperwork and registrations.
✅ Banking & Tax Compliance – We help set up bank accounts and manage your tax obligations.
✅ HR & Payroll Management – We assist with employee hiring, contracts, and payroll processing.
✅ Business Growth Support – We provide marketing and operational strategies to help you scale.

Final Thoughts

Starting a business in Colombia as a foreigner is a straightforward process if you follow the legal steps and ensure compliance with regulations. With no visa requirement, a business-friendly environment, and a growing economy, Colombia presents exciting opportunities for entrepreneurs.

If you’re ready to launch your business in Colombia, Outsourcing to Colombia is here to help! Contact us today to get expert guidance and support throughout the entire process.

📩 Email: contact@outsourcingtocolombia.com
📞 Phone: +57 314 208 71 51