Register with the Registry of Commerce and obtain a taxpayer ID (RUT)
Agency: Chamber of Commerce of Bogota
A Sociedad por Acciones Simplificada (SAS) is incorporated by the parties (or by a lawyer) through a private document that is submitted to the Chamber of Commerce. It is not required to have a public deed. However, if the procedure includes the transfer of real property, it is mandatory to set up the company by public deed (Notary Public).
It is also necessary to submit the following documents: (i) Acceptance letters to the corporate positions of the company (i.e. legal representative, members of the Board of Directors and Statutory Auditor), with a copy of each of their ID, (ii) Legalized and/or apostilled POA if the incorporation procedure is going to be done by a lawyer or a third person, (iii) “Pre-RUT” form issued and dowloaded by the National Tax Authority’s (DIAN) website, and (iv) “RUES” form issued and dowloaded by the Chamber of Commerce of Bogota website.
Applicants can also use the online service to register the documents regarding the consolidation of a Pre-Rut through the DIAN website www.dian.gov.co. Therefore, documents regarding the incorporation of the company must be registered in the Chamber of Commerce, procedure that can be fulfilled online by accessing the following portal: https://linea.ccb.org.co/SAS/index.html#/. The portal provides access to information and speeds up the process of starting a business.
At the end of the process, a Business certificate (Matricula) and aTaxpayer’s ID (RUT) from the Tax Authorities are provided.
Time and cost: 3 days
- 0.7% of Capital registration tax, plus
- Company registration fee (COP 1,129,000), plus
- Business establishment fee (COP 139,000), plus
- Document registration fixed fee (COP 43,000), plus
- Registration form (COP 5,800), plus
- Certificate of existence and legal representative (COP 5,800), plus
- Registration fee per book (COP 14,400).
Obtain an authorization for invoices and an electronic signature
Agency: Tax Authorities (Dirección de Impuestos y Aduanas Nacionales, DIAN)
Business founders must visit DIAN’s offices to obtain an electronic signature for the company’s legal representatives, along with an authorization for the company’s invoices (Autorización de numeración de facturación). The authorization for invoices can also be requested online, by filing a form with the company information. Information is available at http://www.dian.gov.co/contenidos/otros/Facturacion_Numeracion.html.
Time and cost: 1 day, no charge
Register with the Family Compensation Fund (Caja de Compensación Familiar), the National Training Service (Servicio Nacional de Aprendizaje, SENA) and the Colombian Family Welfare Institute (Instituto Colombiano de Bienestar Familiar, ICBF)
Agency: Family Compensation Fund (Caja de Compensación Familiar), the National Training Service (Servicio Nacional de Aprendizaje, SENA) and the Colombian Family Welfare Institute (Instituto Colombiano de Bienestar Familiar, ICBF)
Article 3 of Decree 1362 of 2011 created a unified form to self-assess and pay social security and payroll contribution. The unified form can be submitted electronically but not in person to the National Training Service (Servicio Nacional de Aprendizaje, or SENA), the Colombian Family Welfare Institute (Instituto Colombiano de Bienestar Familiar, or ICBF) and the Family Compensation Fund (Caja de Compensación Familiar). To register for the Family Compensation Fund, the company must consult the Family Compensation Funds available in the market and apply for the membership, in general this process is available online.
The term for payment of the monthly contributions to the Family Compensation Fund expires within the first thirteen business days of each month depending on the last number of the Tax Identification Number (NIT) of the company.
Time and cost: 5 days, no charge
Register the employees for public health coverage
Agency: EPS
To register employees for health coverage, the company must submit a form that indicates the affiliation of its employees to the national health system (Plan Obligatorio de Salud, POS), be it through the public entity) or through a private “”promoter of health”” (EPS). Each employee has the right to choose a provider, and the company is obliged to submit the respective form to the provider designated by the employee. Normally, each company must make its submissions to at least one provider.
In practice, it can take longer than assumed here, because the providers normally do not accept affiliations immediately. The employer is obligated to complete and present different forms, enclosing the documents requested by each entity (which may vary), including the administrator of professional risks.
Time and cost: 6 days (simultaneous with previous procedure), no charge
Register the employer and employees for pension with Colpensiones or one of the private funds
Agency: Public fund (Colpensiones) or one of the private funds
The company must affiliate itself with a pension system. The company must then submit a form that indicates employee affiliation to the pension system (affiliation either to the public pension fund through Colpensiones or to a private pension and compensation fund). The employer cannot choose the pension fund on behalf of the employee. Each employee has the right to choose between the public or private pension fund, and the company must complete the respective submissions to the pension funds.
Time and cost: 1 day (simultaneous with previous procedure), no charge
Register the company with the Labor Risks Administrator (Administradora de Riesgos Laborales, ARL)
Agency: Labor Risks Administrator (Administradora de Riesgos Laborales, ARL)
The company must submit a form listing its affiliation and its employees to an administrator of labor risks (ARL), which covers workplace injury and professional illness. The employer chooses the ARL to which it affiliates all employees and pays the monthly contributions. Coverage begins 24 hours after submitting the form. Before affiliating employees, some administrators of professional risks request that they attend a short course.
Time and cost: 1 day (simultaneous with previous procedure), no charge
Register the employees with a severance fund
Agency: Severance fund
The company is required to present a form that indicates employee affiliation to the severance fund. Each employee has the right to freely choose the severance fund. Consequently, the company is obliged to complete the respective submission to the severance fund requested by the employee. Although 1 day is typically required to affiliate an employee to a severance fund, the time frame may vary depending on the number of entities chosen by the employees. The employer must deposit the employee’s severance payment annually before February 15th.
Time and cost: 1 day (simultaneous with previous procedure), no charge
