Article April 18, 2024

How to do Business In Colombia: 2025 Updated guide

The Colombian economy has been growing slowly since last year. For instance, 2023 had a growth of 0.6%, in contrast to the two previous years, with the highest growth percentages in the last 10 years, according to DANE. GDP clarifies that the low level of growth is due to high inflation, high interest rates, and the uncertain political outlook.

Despite lower statistics over the past two years, Colombia’s economy is still receiving significant foreign investment, which is encouraging for the country’s future. Foreign entities find Colombia an attractive investment destination despite the economic uncertainty around the world. Both the public and private sectors have significantly improved its banking, travel, and commerce sectors, further enhancing its appeal to foreign investors. These developments show that Colombia is a dynamic economy with great potential for growth and prosperity.

Top Startups in Colombia

Despite this panorama, investments have not stopped, and Startups continue to lead the market and grow exponentially, both in terms of assets and users. Habi, a PropTech (Startups related to Real Estate services) has the first place on the top ten of Startups in Colombia (valued in 133,4 millions USD). The second place was reached by the RetailTech food delivery platform Rappi (valued at 115,1 million USD), and the third place was taken by the fintech Lulo Bank (valued at 111,1 million USD). Now, it’s possible to do business in Colombia and reach high benefits and growth. Download the official guide about business below.

It’s clear, therefore, that the question isn’t: “Should you invest in a business in Colombia?” but rather “How?”. To help answer the above, we’ve broken down the best practices for doing business in Colombia in this comprehensive guide. Let’s start by taking a bird’s-eye view of Colombia’s economy.

The Colombian economy: An overview

In terms of inflation, Colombia is gaining stability, going down in the first three months of 2024 by at least 1,98% points regarding December 2023 and reaching an inflation rate of 7.36% in March 2024. On the other hand, the unemployment rate has been descending rapidly since the COVID-19 pandemic, standing at 10.17% by October 2023. Diving deeper into its labor force, Colombia has an increasingly large pool of data and computer science graduates. This talent pool regularly finds its skillset mismatched with Colombia’s relatively tiny selection of tech jobs.

What does this mean for you as a foreign investor?

There’s serious scope for tech-focused enterprises to base themselves in Colombia and take advantage of this underutilized talent. For more advice on the above, consult a qualified Colombia business creation consultant.

This paints an idyllic picture of Colombia as a business opportunity, but what about Colombia’s relationship with foreign investment?

Foreign investment in Colombia

The Colombian government actively encourages foreign investment. According to the Ministry of Industry and Commerce, more than 700 foreign companies are interested in investing in Colombia in 2024. Likewise, according to international comparative reports, Colombia ranks strongly for the ease and speed of starting a business as a foreigner.

Moreover, Colombia has good trade relations with neighboring and external regions. It is part of the Pacific Alliance trading bloc, the Latin American Integration Association (ALADI) and has strong business connections with Spain and the European Union. For advice about how to invest your money effectively in Colombia, reach out to an experienced Colombian business service agency with specialist knowledge of Colombian markets.

Remember to comply with the Colombian labor code, the tax code, and any other disposition when operating your business.

Colombian business visa requirements

Do business in Colombia with expatgroup.co

Before taking on a new business venture in a foreign country, it’s important to know your legal requirements, visa rights, and, most certainly, the language. At expatgroup, we’ve already helped hundreds of foreign businesses like yours start, grow, and prosper into established Colombian companies.

For information on what makes our business creation and consultancy service so special or any advice about the content of this article, book a call with us here and start your Colombian enterprise adventure today.

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Frequently Asked Questions

These are the most commonly asked questions about Expatgroup. Can’t find what you’re looking for? Chat to our friendly team

What laws and regulations must foreign businesses adhere to when operating in Colombia?

Colombia has a legal framework to regulate foreign investments and promote and protect investors’ rights. The primary law governing foreign investments is Law 80 of 1993, which establishes the basic rules for foreign investment in Colombia. Additionally, Colombia has signed international investment protection treaties to offer further guarantees to foreign investors. It is important for foreign business people to understand these laws and regulations to ensure compliance and protection of their investments.

What is the process for establishing a business in Colombia as a foreigner?

If you are a foreigner looking forward to establishing a business in Colombia, you should follow some essential steps. Firstly, you must register the company with the local Chamber of Commerce and acquire a NIT (Tax Identification Number). Next, depending on the business activity, you must get a business or investor visa. After that, you must fulfill the tax and labor requirements and obtain all necessary permits and licenses to operate the business legally in the country. Seeking professional legal and accounting assistance is highly recommended to ensure a smooth and glitch-free establishment process.

What are the best industries to do business in Colombia?

Colombia has a diverse economy with several promising investment sectors. Some of the country’s best industries include technology, tourism, education, mining, agriculture, manufacturing, and renewable energy. Additionally, Colombia’s strategic location and trade agreements make it an ideal hub for companies looking to expand into the Latin American market.

Do I need professional advice to start a business in Colombia?

Seeking professional advice before starting a business in Colombia is highly recommended. It can help you navigate the legal and financial aspects of setting up a business in the country and ensure you comply with all the necessary regulations. Therefore, consulting with a lawyer, accountant, or business consultant with experience with the local market and regulations is advisable. Contact expatgroup.co, and we’ll help you with all your projects.