Did you know that a transfer of an ongoing concern in Colombia triggers a formal two‑month creditor opposition period that can reshape timelines and risk allocation?
We guide companies through the options: discrete asset sales, transfer of a commercial establishment, or liquidation. Each path has specific steps, approvals and registry touchpoints.
For SAS entities, transfers affecting 50% or more of net equity need a shareholder vote and prompt registration. Labor and tax risks move differently depending on whether contracts are assigned or the employer is substituted.
We focus on the practical checklist: certified financial statements for the commercial establishment, title documents, contract lists and clear roles for our legal, tax and finance team.
Our plan sequences publication, creditor notice, registration with the Chamber of Commerce, and any Banco de la República formalities when foreign exchange or investment rules apply.
Key Takeaways
- Choose the right exit route: asset sale, transfer of the commercial establishment, or liquidation based on scope and risk.
- Prepare documents: certified financials, titles and contract registers to speed diligence.
- Mind approvals: shareholder votes and timely registrations avoid delays for SAS and other companies.
- Allocate risks: labor liabilities can be joint for pre‑transfer obligations; tax travel is limited but specific.
- Plan timelines: newspaper publication, two‑month opposition and registry lead times are critical to closing certainty.
Choosing the right path: sale of assets, transfer of an ongoing concern, or company liquidation
We weigh three practical exit paths so partners can choose the route that best protects value and limits exposure. Each route shifts control of assets and liabilities differently and triggers distinct formalities that shape timing.
When an asset deal makes sense
We favor an asset sale when we need surgical control over what moves. The purchase agreement sets the perimeter and allocates remaining liabilities. Asset-by-asset formalities matter: real estate needs a public deed and registry filing; vehicles require title transfer; IP follows registry assignment.
Transferring an ongoing concern
This path preserves operations, customers and staff. For SAS, if assets and liabilities equal at least 50% of net equity at transfer date, shareholders must give a simple majority vote, and the decision registers with the Chamber of Commerce. The seller must publish a notice and allow a two-month creditor opposition period.
Liquidation and winding up
We recommend liquidation when no viable purchase is available or bylaws and law trigger dissolution. Timelines depend on bylaws, creditor settlement and statutory steps that close the company.
| Path | Key advantage | Main formalities | Typical risk |
|---|---|---|---|
| Asset sale | Selective transfer of assets | Purchase agreement; asset registrations | Post-closing claims for excluded liabilities |
| Ongoing concern | Operational continuity | Certified financials; notice; Chamber of Commerce | Joint labor liabilities |
| Liquidation | Clean wind-down | Bylaws steps; creditor settlement | Time and distribution disputes |
Closing or Selling a Subsidiary in Colombia: step-by-step process and documentation
We outline the practical steps and core documents that move a transaction from diligence to registry.
Preparation phase: we open a data room with corporate records, bylaws, contract inventories, lien searches and certified financial statements for the commercial establishment signed by a public accountant. This baseline limits surprises and speeds review.
Corporate approvals: we check bylaws and, when the transfer equals or exceeds 50% of net equity for SAS, obtain a simple majority vote of shareholders, record minutes and prepare acceptance letters and RUT updates for filing.
Drafting the agreement: the purchase agreement defines perimeter, allocation of assets and liabilities, representations, covenants and conditions precedent tied to publication, opposition lapse and registry confirmation.
Public notices and filings: for an ongoing concern we publish the newspaper notice, diarize the two‑month creditor opposition period, then submit registrations and acceptance letters to the Chamber of Commerce.
- Asset formalities: public deed and registry for real estate; title transfer for vehicles; IP registry filings.
- Labor & tax: plan for employer substitution or contract assignment, indemnities for joint liabilities, and ICA and property tax clearance where needed.
- Funds flow: map payment dates, 0.4% bank debits tax and any Banco de la República exchange filings to preserve repatriation rights.
Tax and regulatory implications that shape the transaction
We assess how tax and regulatory rules reshape deal economics and timing. Our goal is to convert those rules into clear tasks we can assign and track.
Corporate income and capital gains
Headline rates matter: Colombia applies a 35% corporate income tax baseline. We model whether a disposal is taxed as ordinary income or as a capital gain. Además, es fundamental considerar cómo estas tasas impositivas impactan en el desarrollo ejecutivo en Colombia, ya que pueden influir en las decisiones de inversión de las empresas. La estructura fiscal puede afectar la competitividad y la atracción de capital extranjero, lo que a su vez condiciona el crecimiento económico en el país. Por lo tanto, entender las implicaciones de la tributación es esencial para la planificación financiera estratégica. Además, es crucial considerar cómo estas tasas impositivas influyen en la inversión extranjera y en la competitividad del país. Al analizar las decisiones de inversión, también es importante evaluar los precios de ats en Colombia, que pueden afectar el retorno esperado de las inversiones. Por lo tanto, la estructura fiscal y el contexto económico son factores determinantes en la estrategia empresarial.
When assets qualify as long‑held, capital gains may be taxed at 15%. Short‑term gains are treated as regular income tax. We run scenarios to optimize net proceeds and payment timing.
Withholding on outbound payments
Withholding can change the cash the seller or buyer receives. Dividends to non‑residents face 20% where corporate tax was paid, or higher rates if not. Interest is generally 20% but drops to 15% for longer‑term debt.
Royalties carry a 20% withholding. We align gross‑up clauses and escrow mechanics to protect net receipts and meet local payment obligations.
Local taxes, fees and practical compliance
Local charges can alter price and closing costs. ICA is a municipal turnover tax (rates often start at 0.2%) and may apply when the transaction looks like a commercial unit sale in Bogotá.
Registration taxes, stamp tax on high‑value deeds, VAT rules and the 0.4% bank debits tax all affect funds flows. We allocate tax liabilities and design proration and indemnity clauses for assets such as real estate and vehicles.
We document filings, evidence and Banco de la República registrations into the closing checklist. For more detail on compliance and structural choices see our global tax guide.
Your next move: an action plan, timeline, and stakeholder alignment
We map the critical path so every stakeholder knows the votes, deadlines and owners. We align shareholders with bylaws and assign clear roles to our deal team for timely approvals and documented votes.
We finalize the agreement package and checklist, confirm which assets and liabilities transfer, and prepare the required documents for registry and the Chamber of Commerce. Acceptance letters, certified financials and title deeds are queued for signature.
We brief buyer, seller and advisers on tax exposure, payment mechanics and escrow terms. Our team tracks net proceeds, proration for real estate and vehicle taxes, and ICA estimates to protect value for the company.
We build contingencies for publication slippage, additional votes and post-closing filings, and keep communications ready to preserve trust across the business and partners.
