For a foreign company entering Colombia, choosing the right legal structure can feel like a technical incorporation question. In practice, it is a much bigger decision. A branch or a subsidiary in Colombia can determine who bears commercial liabilities, how the local operation is governed, how capital moves between Colombia and the parent company, and […]
For many foreign investors, one of the first questions about entering Colombia is surprisingly simple: Do I need a Colombian partner? The answer is no. A foreign individual or company can generally establish and own a Colombian business without giving shares to a Colombian citizen. Colombia’s simplified stock company, or SAS, can be incorporated by
When an international company enters into a commercial agreement involving Colombia, one of the questions that often appears near the end of the negotiation is also one of the most important: Which law will govern the contract? A foreign company may assume that the parties can simply choose the law of their preferred jurisdiction, particularly
A founder in Colombia raising capital may receive an investment proposal that looks very familiar to anyone who has raised capital in Silicon Valley: an investor wants to put money into the company through a SAFE, or Simple Agreement for Future Equity. The document may be only a few pages long, and the investor may
If you are considering investing in, acquiring, or partnering with a Colombian company, the data room can tell you far more than the company’s financial statements. We’ve covered this matter before (more info here), but on this occasion we’re diving deeper into the documents you’ll find and need during the transaction. A data room can
Foreign companies often believe that avoiding incorporation in Colombia means avoiding Colombian taxes. Unfortunately, that assumption can become a very expensive mistake. As international businesses expand into new markets, they frequently begin with relatively limited operations. They hire a local consultant, appoint a country manager (check out our how-to guide here), lease a small office,
Expanding into Colombia does not always begin with incorporating a subsidiary or opening an office. For many international businesses, market entry starts with hiring local workforce. Perhaps a sales representative to explore commercial opportunities, a technical specialist to support existing clients, or a project manager to oversee local operations. Before making that first hire, however,
There is a version of M&A in Colombia that looks very clean on paper. The numbers make sense, the growth story is compelling, the team seems capable, and the opportunity appears to be obvious and very attractive, until you start digging. What you find is not necessarily negative, but it is almost never as simple
If your company operates in Colombia, you may be required to implement an anti-money laundering system called SAGRILAFT. This guide explains who must comply, what triggers the obligation, and what you actually need to do so you can operate in Colombia with clarity and avoid surprises. What Is SAGRILAFT and Why It Matters SAGRILAFT stands
