---
name: co-company-formation
description: "Source-cited draft: company formation & entity choice for Colombia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/co-company-formation"
  jurisdiction: "CO"
  tax_year: "2025"
  last_updated: "2026-07-13"
  review_status: "pending_review"
---

# Colombia Company Formation & Entity Choice

## Entity types, incorporation and annual compliance

- **Most common entity — SAS** — Sociedad por Acciones Simplificada — limited liability, 1+ shareholder, may be foreign-owned, no residency requirement for shareholders  _(Ley 1258 de 2008 (SAS) — https://multilaw.com/Multilaw/Multilaw/Global_Business_Entities_Guide/Colombia_-_Simplified_Stock_Company.aspx)_
- **Other entity types** — Sociedad Anónima (S.A.), Sociedad de Responsabilidad Limitada (Ltda.), branch of a foreign company (sucursal)  _(Código de Comercio (Decreto 410 de 1971) — https://www.bizlatinhub.com/incorporate-a-company-in-colombia-everything-you-need-to-know/)_
- **Minimum share capital (SAS)** — No statutory minimum; subscribed capital must be paid within 2 years of incorporation  _(Ley 1258 de 2008 — https://multilaw.com/Multilaw/Multilaw/Global_Business_Entities_Guide/Colombia_-_Simplified_Stock_Company.aspx)_
- **Incorporation document (SAS)** — Bylaws may be a private document (no notarization required) unless real property/specific assets are contributed  _(Ley 1258 de 2008, art. 5 — https://nexo.legal/company-incorporation-colombia-2025/)_
- **Legal representative** — At least one legal representative required; no residency requirement  _(Ley 1258 de 2008 — https://multilaw.com/Multilaw/Multilaw/Global_Business_Entities_Guide/Colombia_-_Simplified_Stock_Company.aspx)_
- **Registration with Chamber of Commerce** — Register with the local Cámara de Comercio to obtain legal personality and Matrícula Mercantil (~5 business days)  _(Código de Comercio; Ley 1258 de 2008 — https://nexo.legal/company-incorporation-colombia-2025/)_
- **Tax registration** — Obtain RUT and NIT (tax ID) from DIAN; required before invoicing and banking  _(Estatuto Tributario Nacional (RUT obligation) — https://www.bizlatinhub.com/incorporate-a-company-in-colombia-everything-you-need-to-know/)_
- **Registry tax (impuesto de registro)** — 0.3%–1% of capital, depending on municipality/department, plus Chamber of Commerce registration fees %  _(Ley 223 de 1995 (impuesto de registro) — https://nexo.legal/company-incorporation-colombia-2025/)_
- **Typical incorporation timeline** — 5 to 10 business days (Chamber of Commerce registration plus NIT) (approx — varies by city and bank onboarding)  _(Ley 1258 de 2008 (procedural) — https://www.mg-legalgroup.com/n/sas-colombia-setup-guide-us-investors-2025)_
- **Annual commercial registry renewal** — Renew Matrícula Mercantil with the Cámara de Comercio annually (deadline 31 March) (confirm current deadline)  _(Código de Comercio — https://www.bizlatinhub.com/incorporate-a-company-in-colombia-everything-you-need-to-know/)_
- **Core annual compliance** — File annual CIT return with DIAN, periodic VAT and withholding returns, financial statements, and (where thresholds met) exógena information returns  _(Estatuto Tributario Nacional; DIAN annual deadline decree — https://nexo.legal/taxes-in-colombia-companies-2025-guide/)_
- **Statutory auditor (Revisor Fiscal)** — Required where gross assets exceed 5,000 SMLMV or gross income exceeds 3,000 SMLMV at prior year-end  _(Ley 43 de 1990; Código de Comercio art. 203 — https://multilaw.com/Multilaw/Multilaw/Global_Business_Entities_Guide/Colombia_-_Simplified_Stock_Company.aspx)_

The Sociedad por Acciones Simplificada (SAS) is by far the most common vehicle in Colombia — flexible, single-shareholder-capable, with no minimum capital and incorporation by private document. Companies acquire legal personality on registration with the local Cámara de Comercio.

<!-- openaccountants-cta-block -->

---

## Talk to a verified accountant

This guide is maintained by the OpenAccountants network — accountants who put
their name behind the tax answers AI gives people. The live, always-current
version (and the professional behind it) is at
[openaccountants.com](https://www.openaccountants.com).

- Use it in your AI: https://www.openaccountants.com/connect
- Meet the accountants: https://www.openaccountants.com/network

> **General reference only.** This document does not constitute tax, legal, or
> financial advice. Verify figures against the cited primary sources or with a
> licensed professional before relying on them.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `co-company-formation` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/co-company-formation. If neither is available, confirm every figure against the official source pages cited above before relying on it.