Closing a deal in Colombia requires a strategic approach, adherence to local laws, and careful negotiation. Here is a step-by-step guide that can help businesses navigate the legal landscape when finalizing agreements in Colombia.

Due Diligence: Before closing any deal, conducting thorough due diligence is essential. This involves verifying the legal standing of the other party, evaluating assets or liabilities, and assessing any risks associated with the transaction. Due diligence should include legal, financial, and operational evaluations.

Contract Drafting and Negotiation: A well-drafted contract is key to a successful deal closure. Ensure that all terms and conditions, such as payment schedules, deliverables, and dispute resolution mechanisms, are clearly outlined. It’s essential to negotiate terms that protect your interests while adhering to Colombian contract law.

Compliance with Colombian Law: Contracts in Colombia must comply with local legal requirements. Key regulations include the Colombian Commercial Code, civil law, and, depending on the nature of the transaction, labor laws or specific industry regulations. For international businesses, understanding the interplay between Colombian law and international treaties is critical.

Notarization and Registration: In some cases, contracts must be notarized or registered with Colombian authorities. Real estate transactions, for example, require notarial services and registration with the National Registry. This step is crucial to ensure the enforceability of the contract.

Tax Considerations: Tax implications should be evaluated before finalizing any deal. Colombia has specific tax laws that may impact the deal, such as VAT, income tax, and local taxes. Consult a tax expert to understand how these laws will affect your transaction.

Closing the Deal: Once all legal and financial checks are completed, the deal can be officially closed. This usually involves the signing of the final agreement and the exchange of consideration, such as funds or assets. Ensure that all parties meet their obligations as outlined in the contract.

Post-Closing Obligations: After the deal is closed, there may be ongoing obligations, such as payments, regulatory filings, or compliance with specific conditions. It’s important to monitor and ensure all post-closing requirements are met to avoid legal issues.
For expert assistance in closing deals in Colombia, our law firm provides comprehensive legal support to ensure your transactions are legally sound and efficiently executed.

Colombia offers excellent opportunities for investors, and obtaining an investor’s visa is the key to legally residing and doing business in the country. There are two main types of investor visas: the Type R (Resident) visa for long-term investors and the Type M (Migrant) visa for medium-term investors. To qualify, you must make a qualifying investment in approved sectors such as real estate or business ventures. Once the investment is made, it must be legally registered with the Central Bank of Colombia to ensure compliance with local laws.
After registering your investment, you’ll need to prepare the necessary documents, including proof of your investment, passport, and the certificate from the Central Bank. Your visa application can be submitted to the Ministry of Foreign Affairs online or through a Colombian consulate. The approval process usually takes a few business days, provided all documents are accurate and complete. Proper preparation of your application is essential to avoid any unnecessary delays. Beyond the visa itself, an investor’s visa can open the door to long-term residency and, eventually, citizenship. With a Type R visa, investors may qualify for permanent residency, and after meeting certain conditions, they may apply for Colombian citizenship. Our legal team is here to guide you through each stage of the process, from the initial investment to securing your residency or citizenship, ensuring full compliance with Colombian law.

Starting a business in Colombia, particularly under the Simplified Stock Company (SAS) structure, is one of the most common and flexible options for entrepreneurs. The SAS allows for easy incorporation with limited liability, meaning shareholders are only responsible for their contributions. The first step is to choose a unique business name, which can be verified online through the Cámara de Comercio. Once the name is secured, the Articles of Incorporation (estatutos) must be drafted, outlining the company's purpose, capital structure, and management rules. This document can be filed electronically via the Cámara de Comercio's platform.
The next step is to formally register the business with the Cámara de Comercio, a crucial process that grants the company its legal existence and the Registro Mercantil (commercial registration). Registration requires submitting the Articles of Incorporation and paying the corresponding fees. Once registered, the business must also obtain a RUT (Registro Único Tributario) from DIAN, Colombia’s tax authority, which serves as the company’s tax ID. The RUT is essential for opening a corporate bank account and handling tax obligations.
After these initial steps, the business is legally recognized and can start operations. If the business will have employees, it is mandatory to register with the social security system to ensure compliance with labor laws. Depending on the business activity, additional licenses or permits may be required, but the SAS structure offers a streamlined and efficient process through the Cámara de Comercio, making it a popular choice for entrepreneurs in Colombia.

To transfer funds into Colombia, you can utilize international wire transfers via authorized financial institutions, which must comply with foreign exchange regulations and be reported to the Central Bank (Banco de la República). Other mechanisms include foreign direct investment (FDI), which requires proper registration to facilitate tax compliance and future repatriation. Our firm offers expert guidance on navigating these regulatory requirements, ensuring that your transactions are handled efficiently and in full compliance with Colombian law, safeguarding your investments at every stage.