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Colombia

Why create a company in Colombia?

Creating a local company in Colombia offers benefits for entrepreneurs looking to reduce business expenditures for their existing business through offshoring, and also those seeking to conduct business operations in Colombia itself.
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Business Formation, Offshoring, and Residency

By opening and operating a local company, you will be eligible for temporary residency in Colombia. This is a practical pathway for those who want to settle in Colombia and also operate their own local business.

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Should I open a company to purchase real estate in Colombia?

Many real estate investors ask if they should purchase real estate in Colombia using a local LLC.

If you are looking to structure your real estate purchase, there is certainly the option to purchase property using a local company. However, this is not the most tax-efficient method, and it can also lead to inconvenient bureaucratic hurdles.

If you are looking to take advantage of the benefits of owning real estate via an entity, it is recommended to register a foreign company such as an LLC or a corporation. This still gives you limited liability and the ability to sell ownership interests, but will avoid some of the complications you would face by doing it using a Colombian company.

It is worth noting that Colombia is far less litigious than the United States or Canada, for example. It is unlikely that problems related to owning assets in your own name in Colombia should lead to legal action here.

Using Colombia as an offshoring destination

Colombia is not a low-tax jurisdiction. Colombia’s main competitive advantage is low labor costs relative to the quality of human capital. An entry-level, English-speaking, college-educated employee can be hired for $1,000 – $1,200 a month.

Your foreign company can contract your local Colombian company to provide business services such as a call center or support activities. This is powerful leverage for North American companies who want to increase their margins without sacrificing quality.

Using offshore labor in Colombia is advantageous for North American companies who want employees who are more culturally in tune with their clientele, as opposed to talent from India or the Philippines. Colombia being in the same time zone as the US and Canada also helps with coordination and team-building.

Getting residency in Colombia through company formation

By opening a local company, you can get a migrant visa to Colombia that will lead to residency in the country.

My Colombian attorney Alan can help you open a company in Colombia

How do I open a company in Colombia?

My attorney Alan can help you open a company in Colombia. His firm has many informative brochures that will help you navigate the process. You can get in touch with him using the contact form below:

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