Did you know that any foreign company planning permanent commercial activities in this country must create a formal branch to operate legally? This single rule shapes how we enter the market and affects every corporate decision we make.
We walk through the practical steps so we can move from intent to operation with confidence. First, the parent company adopts a board resolution and executes a public deed with foundation documents, bylaws, assigned capital, and appointments for a general agent and statutory auditor.
Then, we register the establishment with the Chamber of Commerce and with DIAN to secure the RUT and NIT. Profits can be repatriated, but we must follow foreign exchange reporting and register foreign investment with Banco de la República.
Our goal is to present a clear, sequential guide that meets legal requirements and lowers setup risk for U.S. companies entering the Colombian market.
Key Takeaways
- Permanent commercial activities require forming a local branch and proper legal documentation.
- The parent company must approve a board resolution and notarize a public deed detailing capital and representation.
- Register with the Chamber of Commerce and DIAN to obtain the certificate of existence and tax identifiers.
- Appoint a general agent and a statutory auditor to meet oversight and representation requirements.
- Register foreign investment with the central bank and follow exchange-reporting rules for repatriation.
Understanding the legal framework for a foreign branch in Colombia
Before we act, we need a clear view of the laws that define foreign entities and their establishments here.
What the Code of Commerce requires
Colombian law (Commerce Code, art. 469 et seq.) defines a foreign company as an entity formed under foreign law with headquarters abroad. When such a company carries out permanent commercial activities in the territory, we must establish a local presence.
Which activities trigger establishment
- Opening a commercial establishment or an office for services or technical support.
- Contracting works or services and operating in extractive or concession-based sectors.
- Holding assemblies, board meetings, or managing investments sourced from private savings.
Legal status and required documents
A foreign branch is a commercial establishment managed by authorized agents and remains legally inseparable from the parent company. Claims against the establishment reach the parent, so our governance must reflect that unity.
| Activity | When permanent | Required documents |
|---|---|---|
| Commercial outlet or office | Continuous services or regular sales | Authenticated foundation documents, bylaws, resolution |
| Contracts for works/services | Ongoing or recurrent contracts | Notarized proof of legal capacity of representatives |
| Corporate meetings or investments | Management or fund operations in country | Verified existence of parent company and agent powers |
How to establish a branch office Colombia: step-by-step
Here we map the procedural milestones required to formalize our presence and open for commercial activity.
Home office resolution. We adopt a corporate resolution that authorizes the new entity and fixes the exact name as “Sucursal Colombia”. The resolution sets corporate purpose, domicile, duration, and the assigned capital, which must be fully paid at opening. Además, se establecerán las responsabilidades y facultades del representante legal de la sucursal. Es importante también considerar las diferencias entre sucursal y filial, ya que influyen en aspectos legales y fiscales. Finalmente, se determinarán las políticas internas que regirán las operaciones de la nueva sucursal en territorio colombiano. Asimismo, se establecerán alianzas estratégicas con empresas de reclutamiento en Colombia para facilitar la incorporación de talento local y optimizar el proceso de selección. El entendimiento del mercado laboral colombiano será crucial para el éxito de las operaciones de la sucursal. Por último, se realizarán capacitaciones periódicas para asegurar que el personal esté alineado con la cultura corporativa y los objetivos de la empresa. Además, se fomentará la formación de alianzas estratégicas con empresas locales, lo que facilitará la apertura de empresas conjuntas en Colombia y fortalecerá nuestra presencia en el mercado. Esta estrategia no solo permitirá un mejor entendimiento de las dinámicas comerciales locales, sino que también optimizará nuestros recursos y ampliará nuestras oportunidades de negocio. Se diseñarán, por ende, planes de colaboración que impulsen el crecimiento mutuo y el desarrollo sostenible de la Sucursal Colombia. Es fundamental considerar factores como el tipo de actividad económica y el mercado objetivo para elegir la estructura empresarial adecuada. Asimismo, se deberá realizar un análisis de los impuestos y regulaciones que afectarán la operación de la sucursal en Colombia. Una planificación adecuada garantizará que se cumplan todas las normativas locales y se maximice el potencial de negocio.
Appointments and powers. We appoint a general representative and a statutory auditor who are residents in the country. Each acceptance letter must include full name, title, ID number, and signature. When needed, we issue a special power of attorney so a local representative can act before the notary, Chamber of Commerce, and DIAN.
Notarial formalization and registrations. The branch is constituted by executing a public deed at the notary in the chosen domicile. We attach authenticated foundation documents, bylaws, the authorizing resolution, and certificates proving the parent company’s existence and representatives’ legal capacity.
One notarized copy is filed with the Chamber of Commerce for registration. The Chamber issues certificates that list the name, corporate purpose, domicile, assigned capital, legal representatives, and the statutory auditor. We then register with DIAN to obtain the RUT and NIT and declare applicable taxes.
| Step | Responsible | Required documents | Time / Fees |
|---|---|---|---|
| Home office resolution | Parent company board | Resolution naming “Sucursal Colombia”, capital, duration | 1–3 days / Internal corporate costs |
| Appointments & powers | Parent & appointees | Acceptance letters, ID, power of attorney | 1–2 days / Notary fee if POA used |
| Public deed notarization | Notary & local rep | Authenticated foundation docs, bylaws, certificates | 2–3 days / Fees tied to assigned capital |
| Chamber registration | Chamber of Commerce | Notary copy of deed, identification | Same day to a few days / Registration fee |
| DIAN registration | DIAN or representative | Chamber certificate, deed, tax forms | Same day / Administrative fee |
Practical tip. Sequence notarization, Chamber registration, and DIAN registration to avoid mismatches. Keep exact copies of all documents since authorities may request them during routine checks.
Operational requirements and compliance in Colombia
Operational compliance sets the pace for smooth, lawful activity once we start trading. We must keep concise records and follow formal procedures to meet statutory obligations.
Accounting books and corporate records. We maintain the general ledger, journal entries, balance sheets, and minutes of meetings. These books must be registered with the Chamber of Commerce and kept current so that audits and inspections proceed without delay.
Statutory audit obligations
We appoint a statutory auditor who performs oversight comparable to that required of local companies. The auditor must be independent and qualified to review financials and internal controls.
Bank account and foreign investment registration
We open a Colombian corporate bank account to process payroll, payments, taxes, and vendor disbursements. Pick a bank with strong international services to ease onboarding for a foreign company. Es esencial que el banco elegido también ofrezca asesoría para el registro de una empresa LTDA en Colombia, ya que esto facilitará el proceso administrativo y legal. Además, considere la eficiencia de los servicios en línea para gestionar transacciones de manera rápida y segura. Así, podrá asegurarse de que su operación en Colombia sea fluida desde el inicio. Es fundamental que el banco elegido ofrezca asesoría sobre los aspectos laborales en Colombia, ya que esto garantizará el cumplimiento de la normativa local. Además, asegúrese de que el banco tenga experiencia en el manejo de cuentas comerciales para empresas extranjeras, lo que facilitará la gestión de su operación. Una buena relación con la entidad financiera puede ser clave para un crecimiento sostenido en el mercado colombiano.
We also register our foreign investment with Banco de la República. The registration covers initial capital and later increases and depends on the origin of funds. Foreign exchange reporting rules apply to profit remittances.
- Keep annual Chamber registration current and synchronize statutory data across authorities.
- Retain copies of all filed documents and confirmations in an audit-ready file.
- Embed compliance checkpoints into daily workflows, from invoices to capital approvals.
| Requirement | What to file | Responsible |
|---|---|---|
| Accounting books | General ledger, journal, balance sheet, minutes | Local representative / accounting team |
| Statutory auditor | Appointment letter and auditor reports | Parent company & auditor |
| Bank account | Corporate documents, identification, Chamber certificate | Local bank / legal counsel |
| Foreign investment | Registration with Banco de la República; proof of funds | Finance team / central bank liaison |
Capital, governance, and ongoing control between branch and parent
We set funding and governance rules so liabilities, decision-making, and exit paths remain clear in the host country.
Assigned capital vs. supplementary capital
Assigned capital must be fully paid when the entity is formed. It serves as the primary guarantee for local liabilities.
Supplementary capital can be injected by the home office as cash or assets without amending the opening deed. By contrast, increasing assigned capital requires a new public deed and updated Chamber registration.
Decision-making and limits of local authority
The general agent handles daily administration and ordinary-course contracts. Strategic moves—capital increases, purpose changes, or dissolution—stay with the parent company’s corporate bodies.
Winding-up and legal alignment
Liquidation of the parent cascades to the local presence. We also respect Colombian dissolution rules that apply to branches and keep the registered name and records current.
- Document approvals and powers to protect third-party enforceability.
- Use supplementary capital for liquidity and assigned capital for long-term guarantees.
- Anchor controls in applicable laws to limit risk for the parent company.
Ready to launch your branch and start commercial activities in Colombia
With registration and tax numbers in hand, we are ready to transact, hire, and operate under local rules.
Once the public deed is recorded with the Chamber and the DIAN RUT shows the correct NIT number, we may begin commercial activities. We open a local bank account and set up FX procedures so funds flow smoothly.
We confirm that Chamber certificates match tax records and reflect the establishment’s name, purpose, domicile, assigned capital, and representatives to avoid delays in registration and compliance.
We register foreign investment with Banco de la República and keep all acknowledgments in our compliance file. Finally, we align billing, payroll, and reporting so the company can operate in the country from day one.
