Colombia

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Operating a Business in Colombia

Setting up a company | Working conditions | Cost of labor | Social partners

Setting up a company

Legal business entities

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Registration fees
Sociedad de Responsabilidad Limitada (SRL) is a limited liability company. no minimum capital.	Minimum of two partners. Maximum of twenty partners . Their liability is limited to the amount of their investment.	Register with the Registry of Commerce, obtain the "certificate of existence and legal representation"; register the company books and register with the National Tax Office (DIAN) at the Chamber of Commerce: 0.7% of capital in registration tax + COP 527,200.
Sociedad Anonima is a limited company. no minimum capital. PLEASE NOTE: it must be purchased at 50% and at least 1/3 of the value of each share must be paid. The remaining 2/3 must be turned over the following year.	Minimum of five partners. Their liability is limited to the amount of their investment.	Register with the Registry of Commerce, obtain the "certificate of existence and legal representation"; register the company books and register with the National Tax Office (DIAN) at the Chamber of Commerce: 0.7% of capital in registration tax + COP 527,200.
The Sociedad en acciones por comandita (SCA) is a partnership limited by shares. no minimum capital.	There are two types of partners general and silent. The liability of the general partner is unlimited. The responsibility of silent partners is limited to the amount of their investment.	Register with the Registry of Commerce, obtain the "certificate of existence and legal representation"; register the company books and register with the National Tax Office (DIAN) at the Chamber of Commerce: 0.7% of capital in registration tax + COP 527,200.
Sociedad en Comandita Simple (SCS) is a limited partnership. no minimum capital.	There are two types of partners general and silent. The liability of the general partner is unlimited. The responsibility of silent partners is limited to the amount of their investment.	Register with the Registry of Commerce, obtain the "certificate of existence and legal representation"; register the company books and register with the National Tax Office (DIAN) at the Chamber of Commerce: 0.7% of capital in registration tax + COP 527,200.

Business setup procedures: To form a company in Colombia, one must first appear before a notary to establish a protocol. This protocol must then be registered with the Chamber of Commerce and Industry. One must also obtain a tax identification number from the Colombian authorities (NIT), open an account into which the funds will be deposited through an international bank. Finally, one must register with the Banco de la Republica's international technical division.
The competent organization: Companies are registered at their local Chambers of Commerce, for more information visit the website of the Confederation of the Chambers of Commerce of Colombia.

Working conditions

Legal weekly duration: Working hours are limited to 48 hours per week spread over a maximum period of six days a week. With authorization granted by the Ministry of Social Welfare, an employee can work up to 12 hours of overtime per week. Employees in managerial positions are not subject to such restrictions.
Retirement age: The retirement age is 60 for men and 55 for women, or after a minimum of 1050 weeks of work.
Working contracts: All types of contracts stipulated by the Ministry of Social Protection are described here.

Cost of labor

Minimum wage: 433,700 COP (187 USD)
Average wage: Average monthly gross earnings in Colombia is COP 675,211 (USD 310).
Social contributions: Social security contributions paid by employers: 27%.
Social security contributions paid by employees: 7.38%

Social partners

Social dialogue and involvement of social partners: In accordance with Colombian labor legislation, any group of 25 workers or more, regardless of whether they are employed by the same company or not, can form a union. Employees of companies with fewer than 25 employees can join other unions. There is not a strong culture of unionization in Colombia.

The main unions are the CUT (Unified Congress of Workers), the CTC (Congress of Workers of Colombia), UTC (Union of Workers of Colombia) and the CGT (General Congress of Workers). They are mostly comprised of public employees, especially from the country's petroleum industry and the education sector. The constitution protects the right to form unions and unionized workers have specific legal protection that prevent them from being fired because of their union activity. Strikes in the essential public service sectors, such as the central bank and other activities related to the public health system, are illegal.

About 10% of the country's formal labor is unionized.
Unions: Unified Congress of Workers of Colombia
Unionization rate: 10% (of the formal sector)
Labor regulation bodies: Confederation of Employers
Ministry of Social Protection

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