Why Colombia Is Increasingly Attractive for Foreign Entrepreneurs
Colombia has one of the most business-friendly regulatory environments in Latin America. The SAS (Sociedad por Acciones Simplificada) structure introduced in 2008 under Law 1258 is specifically designed for entrepreneurial flexibility — single-shareholder allowed, no minimum capital requirement, simplified governance, and digital registration options. Foreign nationals can own 100% of a Colombian SAS, making it the default choice for expat business formation.
SAS vs. Other Colombian Business Structures
| Structure | Min. Shareholders | Min. Capital | Best For |
|---|---|---|---|
| SAS | 1 (single allowed) | None required | Most startups, expat entrepreneurs |
| Ltda. | 2–25 | None required | Small partnerships |
| S.A. | 5+ | Required | Large operations, public companies |
| Unipersonal | 1 | None | Very small, informal — less preferred |
Step-by-Step: SAS Formation Process
- Draft the company statute (estatutos) — defines company name, purpose, capital, shareholder rights, governance. Must be in Spanish. Use a notary or specialized service.
- Authenticate at a Notaría — the founding document can be a private document if capital contributions are below a threshold, or requires notarization for larger formations. Your notary will advise on the threshold.
- Register at the Cámara de Comercio — submit the statutes, pay registration fees (based on capital amount) and receive your Número de Identificación Tributaria (NIT) pre-registration.
- Register with DIAN (RUT) — within 30 days of Cámara registration. The RUT (Registro Único Tributario) is your company's tax identity. Required for all commercial and banking operations.
- Open a corporate bank account — with NIT and RUT, you can open a business account at Bancolombia, Davivienda or BBVA Colombia.
- Register for ICA (local industry tax) — municipal business tax; requirements vary by city.
Documents Foreign Nationals Need for SAS Formation
- Passport (authenticated copy)
- Cédula de Extranjería (if holding a long-stay visa)
- Personal RUT (for the foreign shareholder) — obtainable from DIAN
- Colombian address for the company's registered domicile
- Company statutes (in Spanish, prepared with legal support)
The Investor Visa Path Through Your SAS
Forming an SAS creates the potential pathway to a Migrante Inversionista or Migrante Socio o Propietario de Empresa visa. For the Inversionista visa, a direct investment of at least 650 SMLMV (~USD 225,000+ at 2026 rates) must be registered through the Colombian Central Bank (Banco de la República). For the Socio/Propietario visa, participation in a legally constituted Colombian company may qualify at lower investment thresholds.
Tax Obligations for Your Colombian SAS
A Colombian SAS is subject to corporate income tax at 35%, VAT obligations (IVA), industry and commerce tax (ICA), and various reporting obligations with DIAN. As a foreign shareholder, dividend payments to you abroad may be subject to withholding tax. Colombia has a growing tax information exchange network — consult a bilingual tax advisor before proceeding.
Sources: Ley 1258 de 2008 (SAS Law). DIAN — dian.gov.co. Resolution 5477 of 2022. Cámara de Comercio. Not legal or tax advice.
Related: Investor Visa Guide · Business Owner Visa Guide
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