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CoColombia Subsidiary.






Country Capital



Colombian peso (COP)

Establishing a subsidiary in Colombia is one way to grow your company in the region. However, following all Colombia subsidiary laws is important to stay compliant. The entire subsidiary setup process can take months, leaving employees you want to hire to search for different positions.

Instead, G-P offers a better way. We reduce this months-long process and help you get your company operating in a matter of minutes.

How to establish a Colombia subsidiary

While commercial law in Colombia is often considered flexible, establishing a subsidiary still involves several steps. A minimum of 2 partners must incorporate a limited liability company, which is a common form of entity in Columbia. This type of subsidiary is governed and operated by a board of partners. All partners must participate in the management of the limited liability company. However, partners can designate a manager.

Statutory auditors, which must be local, are required if the company exceeds a certain amount of assets determined by law. The corporate and accounting books should be kept in the company’s domicile.

Colombia subsidiary laws

Subsidiary laws might vary by country, and you need to know these laws before you begin. Each step of the process can take anywhere from days to weeks, and any mistakes will only extend the process further. Colombia subsidiary laws mandate:

  • No investment capital is required. However, before the incorporation can commence, partners must indicate the amount of their contributions to the company and pay the capital at the time of the incorporation.
  • You do not need a Board of Directors. Instead, you can have partners and the General Manager make decisions.
  • There is a registration fee to incorporate.

Colombia subsidiary law is not found in one place. Instead, you must follow a variety of rules and regulations. You’ll need to examine each of these rules before you open your subsidiary.

Benefits of establishing a Colombia subsidiary

Establishing a subsidiary in Colombia offers numerous benefits. Although the process is lengthy, you can eventually grow your company to a new location and serve a broader base of customers. With a subsidiary, there is limited liability between the subsidiary and the parent company. The subsidiary can also operate under a degree of autonomy from the parent company, allowing you to create your own workplace culture that fits the overall business culture of Colombia.

Other important considerations

To establish a subsidiary, companies will first need to understand Colombia subsidiary laws fully. Colombia subsidiary law says companies will likely  need to register their international currency as a global investment. Companies can do this by filling out the applicable form with the Colombian Central Bank.

Companies might need to register any other international investments with the Central Bank. They will have to update the Central Bank on their international direct investment registration every year, even if they are not obligated to submit any financial statements.

Enter new markets with G-P — no new entities required.

Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 Global Growth Platform™ to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.

Get in touch today to learn more about how we can streamline the global growth process.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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