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 […]
When a commercial relationship breaks down in Colombia, one of the first questions a foreign company usually asks is deceptively simple: how much can we recover? Under Colombian law, damages can include both losses that have already occurred and profits that were expected but never materialized. At the same time, not every financial consequence of
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
Boutique Hotels Draws Its Value From Something It Does Not Own Take a moment to think about the boutique hotels you’ve loved most. Perhaps it was a restored colonial house tucked away on a quiet street. A cabin overlooking a lake. A coffee farm where mornings began with birdsong instead of traffic. Or a mountain
One of the first questions many foreign investors have before entering Colombia is one they rarely feel comfortable asking out loud: “Will I need to make unofficial payments to get things done?” It is a fair question. Whether you are opening a subsidiary, investing in a Colombian company, importing products, or applying for permits, you
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,
