Table of Contents
In this blog, we explain the steps you need to take to start up a business in Colombia and successfully apply for an Investment Visa in 2025. Let’s start off by creating your business.
Set up a business in Colombia
Legally establishing your Colombian business is essential, regardless of the industry it belongs to. The type of business you choose to set up will depend on how you want to operate; options include a commercial partnership, a branch of a foreign corporation, or a franchise.
Once you have determined the structure and added it to your company's bylaws, you can register with the Colombian Chamber of Commerce.
Chamber of Commerce Registration
When starting a business in Colombia, you must know each Colombian department has a Chamber of Commerce branch. Consult your department list here and apply according to where your company’s headquarters will be.
Once you’ve identified the correct Chamber of Commerce, you must submit the following:
- Documents outlining your company’s bylaws (private document or public deed)
- Copy of the PRE-RUT, your Colombian ID card (Cédula de ExtranjerÃa)
- Copy of your company’s legal representative’s passport
- Written confirmation of your company’s legal representative’s substitute, board members, and shareholders
When the Chamber of Commerce accepts your application, you’ll need to register taxes and duties to register your company formally.
Note:Â The Chamber of Commerce can review your application for up to 24 hours. However, there are a few steps before registering with the Chamber of Commerce:
RUES and the Legal Structure of Your Business
To better understand this important step to start a business in Colombia, we will explain in detail how to carry it out to ensure everything is as satisfactory as possible:
Register your company’s name
Establish your company’s legal structure
There are several ways to structure your business legally, like Limited Liability Companies (LTDA), Simplified Joint-Stock Company, and Corporations (SA). Check out our comprehensive guide to the legal requirements for setting up a business in Colombia for more information.
Note:Â We recommend using a Simplified Joint-Stock Company for the legal structure to the M-type Investment Visa.
Set up your company’s legal representatives and other members
Remember that some business legal frameworks (like Simplified Stock Companies) don’t require you to state a fiscal auditor or board members.
Note: Although Simplified Stock Companies aren’t required to state fiscal auditors upon creation, it is obligatory if the company exceeds 5000 times the minimum wage in gross assets or 3000 times the minimum wage in gross income.
Additionally, you must write your company’s bylaws
Keep in mind that the Branch Opening Motion must demonstrate the following:
I. The branch name.
II. The activities to be developed by the branch.
III. The amount of assigned capital, and capital from other sources if any
IV. The branch address
V. The activities’ time frame in Colombia and terms and causal factors to finish those activities
VI. The designated president with up to two substitutes to represent the branch in Colombia
VII. The designated fiscal auditor, who must live in Colombia
VIII. Bylaws can be drafted as private documents or public deeds, depending on the company structure. It’s also essential to notarize documentation that delegates the outlined roles.
After, you must check the DIAN Commercial Activities Classification CIIU
Corresponding to your economic activity, you must check it by entering your economic activity keywords here.
Finally, fill out the form PRE-RUT online here
This step is crucial as it ensures that all necessary information is captured correctly for processing. Make sure to review all entered details for accuracy before submitting.
Note:Â We recommend using a bookkeeper to advise on filling out the PRE-RUT form correctly
Bank Account Opening and Capital Injection
It’s necessary for your legal representative to be living in Colombia. If they’re not a Colombian citizen, they’ll need to open a bank account and can use one of the following options:
The process for getting a Colombian visa can take two or four weeks.
Acquire foreign investment certification from Colombia’s Central Bank, Banco de la República.
Note: A Banco de la República certificate details your capital investment in Colombia. The Statistical Exchange System of the International Exchange Department incorporates it. It is aligned with the terms stipulated by the External Resolution 6045 on August 2nd, 2017, by the Minister of Foreign Affairs.
Visa Application and Foreigner's Identification Card
The process with M-Type Visa (Investment/Business) is done through CancillerÃa de Colombia in Bogotá. Once your visa is approved, you can set up your Colombian ID card at your closest immigration office (Migración Colombia)
Colombian Business Visa 2025 Requirements
Once your visa is approved, you need to set up an appointment to get your foreign Colombian ID card at the Migración Colombia web page. Select the Cédula de ExtranjerÃa service option:
What is the Cédula de ExtranjerÃa (foreign Colombian ID card)?
The Cédula de ExtranjerÃa CE identifies you as a foreigner living, working, or studying in Colombia. It’s issued by the immigration office (Migración Colombia) after your visa is approved and is granted to any foreigner with a valid visa other than tourists.
First time applying for an M Business Investment Visa and a Colombian Cédula? At Expat Group, we’ve helped hundreds of expats like you successfully get their Visas and foreign ID cards. Contact us for more information.
NOTE: Once reviewing your application, the Minister of Foreign Affairs can require additional documentation, such as certification of criminal background, original partnership contract, constitution document, and company financial information.
Annexe I: Tax Obligations for a S.A.S. Legal Figure Company
| Name | Description | RATE | Periodicity |
|---|---|---|---|
| Chamber of commerce renewal | Commercial register | % percentage depending on the assets | every year before march 31st |
| Income statement | The income tax has a national coverage and taxes the benefits derived from the company´s ordinary operations. The occasional earnings tax is complementary to the income tax and taxes the benefits derived from not ordinary operations. | Income tax: 35% in 2025 | Annual |
| Value Added Tax (IVA/VAT) | Indirect national tax over-provision of services, sell and import of products. | Three rates depending on service or good: 0%, 5% y 19% | Bimonthly or quarterly |
| Excise tax | Indirect tax that charges the productive sectors vehicles, telecommunications, food, and drinks. | 4%, 8% y 16% | Bimonthly o quarterly |
| Industry and Commerce Tax | Applied to industrial, commercial, or service activities in the local jurisdiction, for a contributor with or without commercial establishment. Charged and administrated by the corresponding municipalities or districts. | From 4.14 to 13.80 rate applied per 1000 (Varies by district) | Annual, and credit monthly. |
| Signs and boards Tax | Is paid for installing signs in public space and is declared as a 15% of the Industry and Commerce tax. | 15% of the Industry and Commerce | Annual, and credit monthly. |
Annex II: Joining Employees to Social Security Information
Every legally-established enterprise in Colombia, when contracting employees legally, is in the obligation to affiliate and contribute social security for Health, Pension, Occupational health and safety (ARL), and Compensation fund.
Annexed percentages on the wage that must be contributed to each entity.
Contract: Full Time
| Obligation | Employer | Employee | Total |
|---|---|---|---|
| Pension | 12% | 4% | 16% |
| Health | 8,5% | 4% | 12,5% |
| Occupational risks- Level I | 0,5% | 0,5% | |
| Compensation fund | 4% | 4% | |
| Total | 25% | 8% | 33% |
