Entity Formation in Colombia

Ready for a permanent Colombian presence? We help you incorporate the right way, and stay alongside you for the accounting, payroll, and compliance that follow. Independent advice, including telling you when it is too early.

  • Independent advice
  • Vetted partners
  • Honest timing

What incorporating in Colombia means

A Sociedad por Acciones Simplificada (S.A.S.) is the standard vehicle for a permanent business presence, created by Ley 1258 de 2008 and registered at the local Cámara de Comercio. It can be formed by a single shareholder, carries no statutory minimum share capital, and is formed by an authenticated private document rather than a full notarial deed in most cases. When you form one, you become the legal employer and operator in Colombia, with full control and no per-employee EOR fees, in exchange for the setup time and the ongoing obligations.

01

Your own company

Your own S.A.S. makes you the legal employer and operator in Colombia, with full control of employment terms and a local brand presence.

02

Lower cost at scale

No per-employee EOR fees. For permanent, proven headcount, owning the entity is more cost-effective than ongoing EOR arrangements.

03

Setup takes time

Registration typically takes one to a few weeks once the authenticated formation document and RUT are in place, and you cannot legally employ anyone until the Cámara de Comercio registration completes. Timing the move matters, which is why many companies bridge with an EOR first.

How incorporating in Colombia works, step by step

From structuring the company to operating it compliantly.

01 – Structure & prepare

We confirm incorporation is right for you, then prepare the S.A.S. formation document, run the company-name availability check at the Cámara de Comercio, and arrange your registered Colombian address.

02 – Capital & authentication

The formation document is authenticated (notarial signature-authentication, not a full public deed, unless a founder’s contribution is an asset that legally requires one). There is no statutory minimum share capital, so there is nothing to deposit before you can incorporate; the terms and payment schedule for subscribed shares are set freely by the founders, up to a 2-year maximum payment term.

03 – Register the company

The company is entered in the Registro Mercantil at the Cámara de Comercio, then registered for a RUT/NIT with DIAN (often same-day via the “Empresa en un Día” route) and for VAT if required, so you can operate and employ compliantly.

04 – Operate & stay compliant

Business bank account, then ongoing accounting, payroll, filings, and annual reporting, all of which we can run for you.

What incorporating in Colombia costs

Two kinds of cost: the one-off formation, and the ongoing operating obligations. Colombia’s formation cost is low; the real commitment is the ongoing compliance. We give you a clear figure before you commit.

Share capital & formation

An S.A.S. has no statutory minimum share capital, so there is nothing to deposit before you incorporate. The Cámara de Comercio mercantile registration fee is nominal for a low-asset startup, roughly COP 24,000-30,000 under the 2026 tariff schedule, plus authentication costs and a separate impuesto de registro if a public deed is required.

Corporate tax

35% standard rate on net taxable income (Art. 240, Estatuto Tributario). Financial-sector entities (insurers, stock brokers, agricultural-exchange firms) pay a further 5 points to 40% through 2027; a separate one-off 2026 wealth tax applies only to companies above a high net-worth threshold.

VAT

Standard IVA is 19% (Art. 468, Estatuto Tributario), with education, health, and basic foodstuffs exempt or excluded. Registration as an IVA-responsable is mandatory once prior-year gross income passes roughly COP 183,309,000 (3,500 UVT).

Ongoing obligations

Accounting, monthly payroll (income tax, pension, health, and ARL), annual Cámara de Comercio renewal by 31 March, VAT and corporate tax filings, and a statutory audit (revisor fiscal) once gross assets or income cross a scale threshold, all of which we can manage for you.

Why form your Colombian company through Bradford Jacobs

Why companies incorporate in Colombia through us rather than a one-off formation agent.

We advise you on the best time to incorporate

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

End-to-end, not just the paperwork

We do not disappear after registration. We stay on for the accounting, payroll, and compliance, so your company runs, not just exists.

  • Beyond registration
  • Ongoing compliance
  • One team throughout

The right specialists, in place

Notary, tax, and accounting partners we have vetted and worked with, coordinated for you, so the process moves and nothing gets missed.

  • Vetted specialists
  • Coordinated for you
  • Nothing gets missed

Two decades of formations

Two decades forming and running entities across global markets, with the local knowledge to keep you compliant and out of the common traps.

  • Incorporations
  • Legal & tax partners
  • Traps avoided

We run it after you form it

Incorporation is the start, not the finish. We stay on for accounting, payroll, tax filings, and annual accounts, so your company operates from day one without you building a local finance function.

  • Full back office
  • Accounting & payroll
  • Annual accounts

The incorporation trap nobody flags

A growing business hits a good quarter and someone says, let us just set up a proper Colombian company. It sounds responsible. It usually is not, yet. Here is what people expect against what happens in practice.

Employment & payroll obligations

Expectation: it takes a few weeks and is just admin. Reality: registration itself can be quick once the formation document is authenticated, but a registered address, a RUT with DIAN, and registration with an EPS, pension fund, and ARL insurer all apply, and you cannot legally employ anyone until those registrations are live.

Tax, filing & reporting obligations

Expectation: we can always reverse it. Reality: dissolving a company needs a shareholder resolution, creditor notification, and a winding-up period at the Cámara de Comercio. And once it exists, the obligations do not stop: annual mercantile registration renewal, monthly payroll filings, corporate tax and VAT returns, and (once you cross the asset or income threshold) a statutory revisor fiscal audit. None of this is a reason not to incorporate. It is a reason to do it at the right time, with the right partners already in place.

What we handle for your company

Beyond incorporation, we can run the full back office for your company.

Compliant payroll

Compliant Colombian payroll and employment administration, issued and maintained for you.

Payroll & filings

Monthly payroll run, with income tax, pension, health, and ARL calculated, withheld, and filed each month.

Statutory benefits

All statutory benefits administered: annual leave, the prima de servicios, cesantías, and maternity/paternity leave.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on incorporating and running a company in Colombia.

How long does it take to incorporate in Colombia?

Usually one to a few weeks once the formation document, RUT registration, and the registered address are in place; DIAN’s “Empresa en un Día” route can issue your NIT the same day the Cámara de Comercio certificate of existence is granted. You cannot legally employ anyone until registration completes, which is why timing matters and why many companies bridge with an EOR first.

None. Ley 1258 de 2008 sets no minimum share capital; founders freely set the subscription and payment terms, up to a 2-year maximum payment term. In practice most S.A.S. incorporate with a nominal amount, often COP 1,000,000 or less. The real cost is the ongoing accounting and compliance, which we can run for you.

Yes. There is no residency or citizenship requirement for shareholders or the legal representative; a non-resident individual can be sole shareholder and sole legal representative, managing remotely. You will need a registered Colombian address, which we arrange.

Incorporate when you have permanent, proven headcount and want full control, and the per-head savings justify the ongoing costs. Use EOR while you are still validating the market or need people working quickly. Most companies start with EOR and incorporate later. We advise on the crossover.

Accounting, monthly payroll (income tax, pension, health, and ARL), annual Cámara de Comercio registration renewal by 31 March, corporate tax and VAT filings, and a statutory revisor fiscal audit once gross assets or income cross the statutory threshold. We can run all of it so the entity stays compliant without you building a local finance function.

Yes, and it is how most companies use us. Beyond incorporation we provide ongoing accounting, payroll, and compliance, so your Colombian company operates smoothly from day one without hiring locally for back office.

Ready to form your company in Colombia?

Tell us your plans for Colombia and we will tell you honestly whether now is the time to incorporate, then handle it end to end if it is, usually scoped within a day. No formation-mill upsell, just the right call.

Tax, company, and labour data verified July 2026 (DIAN, the Cámara de Comercio, UGPP). Figures change; we confirm the current position when we scope your formation.