Doing business

Colombia

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Sociedad de Responsabilidad Limitada (SRL) is a limited liability company. no minimum capital.	Minimum of 5 partners Their liability is limited to the amount of their investment.
Sociedad Anonima is a limited company. no minimum capital. PLEASE NOTE: it must be purchased at 50% and at least 1/3 of the value of each share must be paid. The remaining 2/3 must be turned over the following year.	Minimum of 5 partners. Their liability is limited to the amount of their investment.
The Sociedad en acciones por comandita (SCA) is a partnership limited by shares. no minimum capital.	Two partners minimum: a general partnert and a silent one. The liability of the general partner is unlimited. The responsibility of silent partners is limited to the amount of their investment.
Sociedad en Comandita Simple (SCS) is a limited partnership. no minimum capital.	Two partners minimum: a general partnert and a silent one. The liability of the general partner is unlimited. The responsibility of silent partners is limited to the amount of their investment.

Business setup procedures

Setting up a company	Colombia	Latin America & Caribbean
Procedures (number)	9.0	9.3
Time (days)	14.0	56.7

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Colombia.
Register of commerce, Chamber of commerce.
The competent organization: Companies are registered at their local Chambers of Commerce, for more information visit the website of the Confederation of the Chambers of Commerce of Colombia.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	10,583	7,137	6,760
FDI stock (millions USD)	67,273.2	75,087.3	82,419.8
Performance Index*, ranking on 141 economies	63	55	-
Potential Index**, ranking on 141 economies	95	-	-
Number of Greenfield investments***	73	60	-
FDI inwards (in % of GFCF****)	17.5	25.0	-
FDI stock (in % of GDP)	27.6	32.8	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Colombia

Strong points: The country's main strong points are:
- Its economic stability: Despite the crisis, the government was able to maintain its growth at 2.5%;
- Its political stability: Contrary to what is believed, Colombia's democracy is the oldest and most stable on the South American continent;
- Recovered foreign investor confidence: Foreign investment increased significantly and reaches USD 6,295 million. More than 700 multinational companies launched investment programs in Colombia;
- Qualified and competitive human resources: Colombian workers are amongst the best qualified in Latin America. In effect, the country has a very good education system and the literacy rate is around 95%;
- A Strategic Geographic Location: Colombia is a strategic point between the different markets of the region. The country has modern port facilities on both the Pacific and the Atlantic oceans, which facilitates trade with European countries, the United States, or Asian countries;
- Its status as an export platform: Through various free trade agreements it has made, Colombia has access to a market of almost 1,200 billion people;
- Numerous development centers;
- Infrastructures which are both numerous and modern.
Weak points: Although a sharp improvement was noted regarding security matters, violence remains the country's principle weak point. Colombia is also the primary producer of coca in the world. According to the Ducroire company, commercial risk is ranked at C, which is a very high level.
Government measures to motivate or restrict FDI: Today the Colombian government is reaping the fruits of the policy it implemented to secure democracy, whose objective is to create favourable economic conditions in order to once again, give investors confidence, especially foreign investors. The government has put efforts into concluding free trade agreements, namely through an association agreement as well as a series of agreements in the area of investments in the European Union, aimed at developping a stable and transparent economic environment in which contributions in capital can prosper.

Procedures relative to foreign investment

Freedom of establishment: Guarantee
Acquisition of holdings: Acquiring a majority interest in the shareholdings of a Colombian company is allowed, except for companies in the petroleum sector.
Obligation to declare: The agency for the promotion of foreign investment provides information about the authorizations required for setting-up a business.
Competent organization for the declaration: Ministry of Commerce
Requests for specific authorizations: The petroleum sector is controlled.

Finding assistance for further information

Investment aid agency: Invest in Colombia
Other useful resources: The Proexport website concentrates on investment in Colombia.
Colombia Commercial Guide - Buy USA