A natural person can initiate the procedures for the constitution of a sole proprietorship or a company established by Colombian law; which should be taken into account as a minimum initially:
- Have the Company Name defined.
- Choose the type of corporate figure.
- Prepare the minutes or articles of incorporation that comply with the laws.
- Define the Company Statutes
- Process the Unique Tax Registry (RUT) before the National Tax and Customs Directorate DIAN, in this process the Tax Identification Number (NIT) or Tax ID is generated.
- Registration before the corresponding Chamber of Commerce (Commercial Registry).
Once the NIT has been assigned, you continue with:
- Opening of the national or foreign bank account (s) if required.
- Process the billing resolution before the DIAN (From 2020 the billing in Colombia is electronic)
- The most important thing is to select the group of collaborators that are required.
- Registration with the municipal tax authorities and other public entities if the economic activity of the new company demands it.
- If you have collaborators, they must register in the Social Security System.
- Depending on the economic activity, permits or licenses from government authorities may be required.
Go through each of the entities (Mercantile Registry, DIAN, Municipal Taxes or other entities), fill out, answer requirements with technical legal or tax questions, attach documents as they are required or wait for the time it takes for each procedure you can do a person without problem.
The recommendation in this process is to have the advice of an expert to guide us in the procedures or to take care of them since, although public offices have online consultants and aids or other consultation tools, sometimes interpretation errors may occur.
This is the best way to guarantee that at the end of the process the registrations made and the responsibilities assigned in each of the entities are in accordance with what the new company requires. It cannot be forgotten that a false start can cause relevant problems in the future, the first step is important.
Jaime Sáenz
JS O&A
jsaenz@jsoadvisors.com
+57 300 814 1986
