Host Your Event in Bogota

Contenido del acordeón

Contracts in Colombia can be executed under Colombian law, allowing foreign individuals to engage in commercial activities without the need for a legal presence in the country. These include:

• The collaboration agreement, where parties join forces to conduct a project or activity without forming a new company.
• The mandate agreement, under which an agent performs business acts on behalf of the principal in exchange for a fee.
• The service provision agreement, where the contractor conducts activities independently in exchange for payment.

A foreign company can operate in Colombia temporarily through individual contracts or establish a permanent presence by forming a company, choosing the appropriate legal structure based on its needs. Options include:

• The Simplified Joint Stock Company (S.A.S.), offering flexibility with limited liability and no cap on the number of shareholders.
• The Limited Liability Company, ideal for small groups with up to 25 shareholders and liability limited to contributed capital.
• The Corporation (S.A.), suitable for large operations, requiring at least five shareholders.

Companies incorporated in Colombia must comply with various tax obligations, including a 35% income tax on taxable income. They are also subject to withholding tax depending on the type of service contracted (e.g., 4% for general services), the general 19% VAT on services—with exceptions and reduced rates for specific activities—and the Industry and Commerce Tax (ICA), which applies to income generated in each municipality where services are provided, with rates ranging between 0.2% and 1% depending on the municipality or district.