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Business Permits & Incorporation for Foreigners in Bogotá

Good to know

Good to Know

  • You do not need a Colombian business partner to incorporate — full foreign ownership of an SAS is standard practice and does not require special sector approval in most industries.
  • Even though there's no local-partner mandate, setting up remotely usually means appointing a local legal representative (a Colombian resident) or granting a power of attorney to a lawyer/gestoría, which most foreign founders do anyway to smooth the bank-account step.
  • Opening the corporate bank account is often the slowest and most frustrating part of the process for foreign-owned entities — budget extra time and expect to bring your Chamber certificate, RUT and ID in person.
  • If you plan to bring investment capital from abroad, register it with the Banco de la República from day one — skipping this step can complicate profit repatriation and future investor-visa applications.
  • There's no legal minimum capital for an SAS, but declaring a token amount can look unconvincing if you later apply for an investor-type visa tied to the company, so plan the declared capital deliberately.
  • The 35% corporate tax rate is the same no matter which entity type you pick (SAS, Ltda., S.A., or branch) — the SAS just wins on speed, cost, and flexibility of setup, not on a lower tax rate.
  • If you're a solo freelancer working mostly for foreign clients, registering as a persona natural (rather than a full SAS) is usually faster and cheaper, but it comes with unlimited personal liability and no separate corporate entity shielding your personal assets.
  • Once incorporated, Colombia's compliance calendar is genuinely strict: monthly electronic payroll if you have staff, mandatory electronic invoicing, and an accountant (contador) is close to a practical necessity rather than a luxury.
  • There's some disagreement among sources on whether the nonresident dividend withholding rate is currently 20% or has already moved to 30% under 2026 reforms — confirm the current figure with a Colombian tax advisor or DIAN before modeling profit repatriation.

Other Recurring Business Taxes

Branch Alternative
If you operate as a branch (sucursal) of a foreign parent rather than a locally incorporated SAS/S.A./Ltda., profits repatriated abroad face a flat 20% remittance tax instead of the dividend withholding regime, on top of the same 35% corporate income tax.

VAT Iva

Rate Percent
19
Description
Colombia's IVA (VAT) is 19% on most goods and services sold locally. If you are billing local clients or selling goods/services inside Colombia, VAT registration and charging is generally mandatory.

Municipal Ica Tax

Description
Bogotá, like other municipalities, levies ICA (Industria y Comercio), a municipal gross-receipts tax on commercial, industrial, and service activity carried out within the city, typically ranging from about 0.2% to 1.2% depending on the activity. ICA is deductible against the national income tax base, softening its net impact.

Dividend Withholding

Description
Profits distributed as dividends to non-resident (foreign) shareholders currently attract withholding tax, generally cited at 20%, rising to a combined effect of roughly 35% + 20% if paid out of profits that were never taxed at the company level. A 2026 tax reform bill proposed raising the nonresident dividend withholding rate from 20% to 30%; whether and when that change is fully in force should be confirmed with a local tax advisor or DIAN before assuming either number.

Structure Options For Foreigners

Branch Sucursal
A branch is not a separate legal entity but an extension of the foreign parent company, meaning the parent bears full legal liability for the branch's obligations; it faces the same 35% corporate tax plus a 20% remittance tax on repatriated profits, rather than dividend withholding.

LTDA And Sa Alternatives

Sa
The S.A. (corporation) requires at least five shareholders and a board of directors, making it heavier and generally only relevant for larger businesses planning to raise capital locally or eventually list publicly; it is rarely the right fit for a solo foreign founder.
LTDA
The Ltda. (limited liability company) requires 2 to 25 partners, is more rigid than the SAS, traditionally requires a notarized public deed to form, and suits small, stable partnerships wanting strong transfer restrictions rather than outside investment.

SAS Sociedad Por Acciones Simplificada

No Visa Required To Incorporate
Foreigners can establish a company in Colombia without needing a residency visa to do so; formalities can be handled remotely via a power of attorney to a local representative, though a legal representative resident/registered in Colombia is required to run day-to-day operations.
Summary
The SAS, created by Ley 1258 de 2008, is the default and overwhelmingly dominant choice for foreign investors — it requires just one shareholder with no upper limit, sets no minimum capital, protects shareholders with liability strictly limited to their capital contribution, and allows the articles of incorporation to remain a private document rather than a notarized public deed, which shortens the registration process considerably.
Timeline
Sources differ on total timeline: the Chamber-of-Commerce registration step itself can take as little as 1-2 weeks, but going from registration to a fully working company with a NIT, RUT, and functioning bank account more commonly takes 4-6 weeks in practice.
Foreign Ownership
Colombia allows 100% foreign ownership across most economic sectors, meaning a foreigner can incorporate, operate, and repatriate profits without a Colombian partner.
Market Share Note
Some industry sources describe the SAS as covering roughly 95-98% of all new Colombian companies, though this figure varies slightly by source.

Corporate Income Tax

General Rate Percent
35
Sector Surcharges
A handful of sectors pay more: financial institutions (banks, insurers, brokers) carry an extra 5% surcharge through 2027, oil/coal extraction companies face a 5-10% (up to 15% for oil) surcharge above certain income thresholds, and hydroelectric power companies pay a temporary 3% surcharge through 2026. These are not relevant to most foreign-owned freelance, consulting, services, or small e-commerce businesses.
Structure Neutrality
Your choice between SAS, Ltda., and S.A. does not change your basic corporate tax rate; regardless of structure (SAS, SA, LTDA, or branch), the Colombian corporate income tax rate is 35% on net taxable income.
One Off 2026 Wealth Tax For Companies
An exceptional, one-time net wealth tax on legal entities was introduced for tax year 2026 only, applying to companies with net equity at or above roughly COP 10.47 billion (about USD 2.8 million) at a 0.5% rate (1.6% for certain financial/extractive companies). This is very unlikely to affect a small or mid-size foreign-owned SAS but is worth knowing if the business scales up substantially.
Description
Colombia's headline corporate income tax (CIT) rate is a flat 35% on net taxable profit, and this applies the same way regardless of which legal structure you pick.
Citation Note
The current general CIT rate is 35%, applied upon taxable income; this applies to resident entities and foreign companies with a permanent establishment alike.
Minimum Tax Note
Colombia also runs a minimum effective tax rate (Tasa Mínima de Tributación) of 15% for resident legal entities, calculated on an adjusted 'purged' profit figure; this minimum tax rule does not apply to foreign legal entities without a taxable presence in Colombia.

Incorporation Costs SAS

Nit Registration
Obtaining the NIT itself from DIAN is free; separate small registration-tax and commercial-registration fees apply on top of the Chamber of Commerce fee, scaled to the company's declared capital or asset range.
DIY Minimum Total
COP 2,500,000

Some founders cut costs to roughly COP 2-3 million total (about USD 600-900) by handling the Chamber of Commerce steps themselves and only paying a lawyer for document drafting.

Lawyer And Notarization Fees
COP 3,500,000

Illustrative midpoint of a commonly cited COP 2,000,000–5,000,000 range for a lawyer to prepare bylaws and handle registration paperwork.

Chamber Of Commerce Registration Fee
COP 350,000

Illustrative midpoint of a commonly cited COP 200,000–500,000 range for the Chamber of Commerce registration fee alone.

Filing And Compliance Obligations

Income Tax Return
Annual corporate income tax return filing deadlines are set by DIAN and vary based on the last digits of the company's NIT, generally falling between roughly August and October of the following year, though large taxpayers may have earlier partial-payment dates.
Electronic Payroll
If the company has employees, it must file nómina electrónica (electronic payroll) every month, within the first ten business days of the following month.
Registration Steps
Every company (and every persona natural doing business) must register with the local Cámara de Comercio (Chamber of Commerce) and obtain a NIT (tax ID) and RUT (tax registry) from DIAN, the national tax authority; the Chamber of Commerce typically forwards the application to DIAN automatically. This is required before you can open a business bank account.
Electronic Invoicing
Companies must issue facturación electrónica (electronic invoicing) for their sales — this is not optional once operating.
Simplified Regime Option
Smaller companies can opt into the Régimen Simple de Tributación, which consolidates several taxes (including income tax and sometimes ICA) into a single annual return with bimonthly advance payments — often a simpler path for small foreign-owned operations than the full ordinary regime.
Foreign Capital Registration
Any capital brought in from abroad to fund the company should be registered as foreign investment with the Banco de la República (Colombia's central bank); this creates the paper trail needed to later repatriate profits or capital.
Auditor And Accounting Requirements
Companies that exceed certain revenue or asset thresholds must appoint a revisor fiscal (a statutory external auditor registered with the Superintendencia de Sociedades), and companies classified as 'large taxpayers' must file financial statements under IFRS/NIIF. In practice, having a monthly contador (accountant) is close to mandatory for any operating company given how strict Colombia's filing calendar is.

Freelancer Or Sole Proprietor Vs Forming A Company

Key Tradeoff
The core distinction is legal liability and how the business is taxed at the entity level: a persona natural has no liability shield — personal and business assets are not legally separated, and there is no separate corporate income tax return, so business income flows through the individual's personal tax filings rather than the 35% corporate regime. A SAS or other company creates a distinct legal entity with limited liability, but takes on the 35% corporate tax plus its own DIAN filing calendar (invoicing, payroll if hiring, ICA, dividend withholding on payouts).
Persona Natural Route
Instead of incorporating a separate legal entity, a foreigner with valid, work-eligible immigration status can register as a persona natural (natural person) with a RUT and a matrícula at the local Chamber of Commerce, invoicing clients directly under their own name. This is generally faster and cheaper to set up than a SAS.
When Company Route Fits
A SAS becomes the practical choice once you plan to hire local staff, need a liability shield for contracts or investment, want to use the company as the basis for a business-owner/investor visa category, or are dealing with clients (especially larger Colombian companies or government entities) that require invoicing from a registered legal entity.
When Freelancer Route Fits
Solo remote workers or consultants billing mostly foreign clients, with no local employees and no need to demonstrate a formal company for a visa or contract, often find the persona natural route simpler day-to-day.

Incorporation Process And Requirements

Steps

  • Choose the entity type (almost always SAS) and check/reserve the company name for uniqueness in the Bogotá Chamber of Commerce registry.
  • Draft the estatutos (bylaws) covering company name, domicile, purpose, capital structure, governance and the legal representative — for an SAS this can remain a private document rather than a notarized deed unless real estate is being contributed as capital.
  • Register the company's statutes and shareholder documents at the Cámara de Comercio de Bogotá, paying the commercial registration fee plus a registration tax of roughly 0.7% of the subscribed capital.
  • The Chamber issues the Certificado de Existencia y Representación Legal (proof the company exists and who can sign for it) and, in Bogotá, this step is often folded into the chamber's single-window process that forwards the application directly to DIAN for the NIT/RUT (tax ID), whereas some other Colombian cities require a separate provisional RUT first.
  • Open a corporate bank account — not optional, since DIAN requires proof of the account to issue the definitive NIT, and the company's invoicing and payroll must flow through it. Foreign-owned entities can face extra scrutiny here (a 'Pre-RUT' from DIAN is sometimes needed to get the account moving before the final RUT is issued).
  • If bringing capital from abroad, register the foreign investment with the Banco de la República — required for future repatriation of profits and for investor-visa applications.
  • Register for VAT (IVA) and any applicable municipal taxes, typically done alongside the NIT assignment.

Timeline

Breakdown
Roughly: drafting estatutos (a few days), Chamber of Commerce registration (about a week), NIT/RUT assignment (a few days, often near-automatic in Bogotá), and corporate bank account opening (roughly a week, sometimes longer for foreign-owned entities).
Typical Range
2 to 4 weeks for a clean incorporation with documents ready, extending toward 4 to 6 weeks once corporate bank account opening and any DIAN follow-up questions are factored in.

Typical Cost

DIY Self Filed
COP 3,000,000

Midpoint of a commonly cited 2,000,000–4,000,000 COP DIY range covering Chamber of Commerce and DIAN registration fees; excludes lawyer fees.

Additional Variable Costs
A registration tax of roughly 0.7% of the company's subscribed capital is charged at the Chamber of Commerce, and notary fees (only needed in specific cases, e.g. real-estate capital contributions) commonly range from about $55 to $547 depending on paid-up capital.
Full Professional Service
COP 4,250,000

Midpoint of a commonly cited 3,500,000–5,000,000 COP range for using a lawyer/gestoría to handle drafting, registration, and NIT/RUT assignment.

Documents Required

  • Valid passport for each foreign shareholder (apostilled/legalized corporate documents if a shareholder is a foreign legal entity)
  • Draft estatutos naming the company, purpose, capital, shareholders, and legal representative
  • Registered Colombian fiscal/business address
  • Appointment of a legal representative (must be a Colombian resident if the founder is setting up from abroad, or arranged via power of attorney)
  • Spanish-language documents, or certified translations where originals are in another language

Recommended Entity Type

Name
SAS (Sociedad por Acciones Simplificada)
Alternative Structures
Ltda (2-25 partners, more rigid) and S.A. (minimum five shareholders, used for larger/publicly-oriented companies) exist but are rarely chosen by foreign solo founders because of the extra shareholder and governance requirements.
Description
The SAS, governed by Ley 1258 de 2008, stands as Colombia's most widely used corporate structure and the default choice for foreign investors: it requires just one shareholder with no upper limit, sets no minimum capital, protects shareholders with liability strictly limited to their capital contribution, and allows the articles of incorporation to remain a private document rather than a notarized public deed, which shortens the registration process considerably.

Official Registry And Tax Links

  • Cámara de Comercio de Bogotá: https://www.ccb.org.co
  • DIAN (Dirección de Impuestos y Aduanas Nacionales): https://www.dian.gov.co
  • Banco de la República (foreign investment registration): https://www.banrep.gov.co

Local Partner Or Sponsor Mandate

Details
Colombia allows 100% foreign ownership across most economic sectors, meaning you can incorporate, operate, and repatriate profits without a Colombian partner. There are no nationality or residency requirements for SAS shareholders, and the company can be formed remotely through a power of attorney.
Required
No
Practical Caveat
Colombian law requires you to appoint a local legal representative if you're setting up a company from abroad, and this person must be a Colombian resident who handles official correspondence and can sign documents on your behalf — this is an operational/administrative role, not an ownership stake, and many foreigners simply appoint a local lawyer or accountant to fill it.
AI-generated estimateData refreshed July 2026

Sources cited for this category

These are the sources cited in this business permits & incorporation for foreigners research for this city. Individual figures may not each trace to one of them.

  1. 1.ccb.org.co
  2. 2.dian.gov.co

More About Bogotá

Data last updated July 2026 · Verify anything important.