COLOMBIA

FOR BUSINESS

Why Invest in Colombia?
Colombia has emerged as one of Latin America’s most dynamic business destinations, leading the regional energy transition by rapidly adopting renewable sources such as solar, wind, hydro, biomass, geothermal, and hydrogen—outperforming global averages and driving long-term sustainability.

With a highly competitive cost structure in human talent, raw materials, logistics, and production, Colombia offers a unique platform for efficient manufacturing. These advantages have unlocked opportunities in high-growth sectors including pharmaceuticals, automotive, construction, and metallurgy.

Beyond cost competitiveness, Colombia’s strength lies in its vibrant business ecosystem. The country is home to a robust entrepreneurial culture with more than 1,100 startups across 26 industries, nurtured by forward-thinking public policies that accelerate digital transformation. This ecosystem positions Colombia as a hub for innovation, technology, and global services—spanning knowledge-based industries, software development, and outsourcing.

For investors seeking a strategic gateway to Latin America, Colombia combines economic stability, competitive advantages, and a culture of innovation—making it an ideal destination to expand, innovate, and thrive.

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Establishing a Foreign Investment:

Introduction

Establishing a foreign investment involves a series of legal, financial, and administrative procedures that must be followed to successfully set up a business or invest in a country different from the investor's country of residence or nationality. Below is a step-by-step guide to establishing a foreign investment, considering general regulations, although it is crucial to adapt these steps to the specific laws of the destination country.

Step 1: Research and Planning (Pre-Establishment)

• Selecting the Destination Country:

  • Research the economic, political, and regulatory environment.

  • Analyze investment treaties and double taxation agreements.

• Defining the Investment Objective:

  • Determine the sector or industry of interest.

  • Establish financial and growth goals.

• Choosing the Investment Structure:

  • Foreign Subsidiary (Wholly Owned Subsidiary).

  • Limited Liability Company (Branch Office).

  • Joint Venture with local partners.

  • Investment in shares or bonds of local companies.

Step 2: Compliance with Legal and Regulatory Requirements

• Company Registration:

  • Obtain the business name and verify its availability.

  • Register the company with the commercial registry or equivalent.

• Obtaining Licenses and Permits:

  • Identify necessary licenses to operate in the selected sector.

  • Fulfill requirements for their acquisition.

• Compliance with Labor and Tax Regulations:

  • Understand labor laws for hiring local staff.

  • Familiarize yourself with tax obligations and filing requirements.

Step 3: Financial and Investment Aspects

• Opening a Bank Account:

  • Select a local bank that caters to international business needs.

  • Open an account in the local currency and, if necessary, in foreign currency.

• Funds Transfer:

  • Comply with exchange control regulations.

  • Transfer funds for the initial investment.

• Investment and Asset Management:

  • Execute the investment as planned (purchase of shares, establishment of infrastructure, etc.).

  • Establish an asset management and liquidity plan.

Step 4: Operational Setup

• Infrastructure Establishment:

  • Lease or purchase commercial or industrial premises.

  • Acquire necessary equipment.

• Staff Hiring:

  • Select and hire key personnel (managerial, technical, administrative).

  • Provide training as necessary.

• Commencement of Operations:

  • Launch the product or service into the market.

  • Implement management and control systems.

Step 5: Ongoing Monitoring and Evaluation

• Financial Monitoring:

  • Supervise cash flow and financial statements.

  • Make adjustments to the financial strategy as needed.

• Ongoing Regulatory Compliance:

  • Stay updated on legal and regulatory changes.

  • Maintain licenses and permits.

• Performance Evaluation:

  • Analyze key performance indicators (KPIs).

  • Make strategic adjustments to improve performance.

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Advice for the Investors

• Specialized Advice: Hire legal, financial, and tax advisors experienced in COLOMBIA.

• Flexibility: Be prepared to adapt to changes in the regulatory or market environment.

• Exploring Support Sources: Identify support programs for foreign investment that COLOMBIA government may offer.

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Advisory for all Countries