Colombia's SAS is about as foreign-founder-friendly as company formation gets in this series: one shareholder, no minimum capital, your passport is sufficient ID, and no local partner or nationality requirement stands in the way. Here's what it takes to start a business in Colombia in 2026.
1. Which business structure fits you?
Before you register anything, it helps to know what you're actually choosing between.
- SAS (Sociedad por Acciones Simplificada). The default choice and by far the most common structure registered in Colombia. One shareholder, no minimum capital (even 1 Colombian peso is technically legal, though banks expect more in practice), limited liability.
- SRL. Requires two to 25 partners with restricted ownership transfers.
- SA (Sociedad Anonima). Requires at least five shareholders and a mandatory board of directors.
A Sucursal (branch office) is also possible for foreign companies wanting a local presence without a separate Colombian entity, but it exposes the parent company to unlimited liability in Colombia, worth weighing carefully against an SAS.
2. Register your business
Registration starts at the Camara de Comercio (Chamber of Commerce) in your city, Bogota, Cali, and Medellin each maintain separate registries, where you check name availability through RUES (Colombia's unified business registry), reserve the name for 30 days, and submit your company's estatutos (bylaws) and shareholder documents. The Chamber automatically forwards your application to DIAN (the national tax authority), which issues your NIT (company tax ID) and RUT (tax registry), both required before opening a corporate bank account. The full process typically takes 3 to 4 weeks and can be completed entirely remotely through an apostilled, Spanish-translated Power of Attorney. Drafting the articles of incorporation with a lawyer typically costs COP 1 to 2 million and takes 3 to 5 days.
3. Check licenses and permits
Colombia doesn't issue a single national business license. What you need depends on your CIIU economic activity code and municipality; certain regulated sectors carry additional permits.
4. Understand Colombian taxes
Corporate income tax is a flat 35% on net profits (reduced to 20% for companies operating in designated Free Trade Zones). VAT (IVA) is 19% standard. ICA (Industria y Comercio), a municipal commerce tax, runs roughly 0.2% to 1.4% of gross revenue depending on the city and sector, and some municipalities layer on surcharges, Medellin adds a 1% ICA surcharge earmarked for the fire department, easy to overlook when budgeting. Withholding tax on cross-border payments is 20%, reducible under double tax treaties, and capital gains tax sits at 15%.
5. Consider the M-6 business visa
A common path for expat founders is to register the SAS first, since a demonstrated business with real activity supports a Type M-6 Business Owner Visa application. The 2026 investment threshold is roughly 100 times Colombia's monthly minimum wage (SMMLV), landing somewhere around USD 39,000 to 47,000 depending on the exact calculation used, or alternatively employing at least 10 Colombian workers. A tourist visa doesn't authorize running the business day to day, so many founders register the company on a tourist or digital nomad visa, then transition to the M-6 once the business is established.
6. Stay compliant
Annual Camara de Comercio renewal runs roughly COP 200,000 to 500,000 depending on declared assets, and monthly bookkeeping with a local accountant typically costs COP 300,000 to 800,000, required even with zero revenue. Even a dormant SAS costs roughly COP 300,000 to 500,000 a year to keep alive, plus the accountant's fee. Annual corporate income tax filing is typically due by 31 March.
Colombia business costs at a glance
| Item | Cost |
|---|---|
| SAS minimum capital | None required |
| Articles of incorporation (with lawyer) | ~COP 1 to 2 million |
| Corporate tax, standard | 35% |
| Corporate tax, Free Trade Zones | 20% |
| VAT (IVA), standard rate | 19% |
| ICA municipal commerce tax | ~0.2% to 1.4% of gross revenue |
| M-6 visa investment threshold (2026) | ~$39,000 to $47,000 |
Frequently asked questions
How much capital do I need to start an SAS in Colombia?
None required by law, even 1 Colombian peso is technically legal, though banks expect more in practice.
Can a foreigner own 100% of a company in Colombia?
Yes, an SAS needs just one shareholder, your passport is sufficient ID, and there's no local partner or nationality requirement.
What's the corporate tax rate in Colombia?
A flat 35% on net profits, reduced to 20% for companies operating in designated Free Trade Zones.
What is Colombia's M-6 business visa?
A visa for expat founders with a 2026 investment threshold of roughly $39,000 to $47,000, or alternatively employing at least 10 Colombian workers.
How long does it take to register a company in Colombia?
Typically 3 to 4 weeks, and the process can be completed entirely remotely through an apostilled Power of Attorney.
Fees and rates above come from Confecamaras and DIAN as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Colombia-qualified accountant or lawyer about your specific situation.