Quickstart: to Market Entry Colombia
Learn how TMF Group can help you expand into Colombia.
Briefing paper: An overview of current tax reforms in Colombia Since January 2015, companies operating in Colombia have been faced with a new tax reform. It seems to be a burden for foreign companies, but it is necessary to take a deeper look in order to realize the real impact on multinational companies. Our Colombian managing director provides insight into the changing tax landscape in the country.
Types of legal entities in Colombia There are about four (4) types of legal structures in Colombia. Simplified Stock Company (SAS) and Limited Liability Company (Ltda.) are the more widely used forms of business representation by foreign investors. Branches and Anonymous Stock Companies (S.A) are required to appoint an external auditor or Fiscal Reviewer. Other companies are required to appoint an auditor in certain cases.
Withholding tax in Colombia
One of the most complex taxes in Colombia is the withholding tax. Learn the general structure of the tax, where companies can go wrong, its penalties, and some considerations to be aware of.
Minimize the risk on Anti-money and Anti-Terrorism law
A recent regulation in Colombia demands all companies to have an anti-money and anti-terrorism internal policy to prevent illicit activities. One of the options companies have is to implement the “know your client” policy which provides due diligence of a company’s clients, providers or any third party they do business with.
Overall payroll process in Colombia
Besides the normal payroll payments to employees, there are basic obligations, derivatives, fiscal and labor obligations related to the payroll process in Colombia. The Colombian social security contribution includes coverage for health, retirement, risks and additional contributions to the National Learning Services and the Colombian Institute of Family Welfare.
Practices for a successful selection and recruitment processes
Selecting and recruiting the best employees for a Colombian company can be done successfully by taking into account recruitment sources, and the level of expertise you are looking for. Having a successful process will help establish a long term commitment between the employer and employee.