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8/12/2019 Legal Guide to Do Business in Colombia 2013 Chapter 3
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TO DO BUSINESSIN COLOMBIA
WWW.PROEXPORT.COM.CO2013
LEGAL GUIDE
Libert y O rde
n
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CORPORATE
REGULATIONS
CHAPTER 3
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3. Corporte reultions
CORPORATE REGULATIONSFive thins n investor should know boutcorporte reultions in Colombi:
1. Corporte lw in Colombi enjos ret lel stbilit b mens of stble leisltion tht hs proressedwith time.
2.Investors who wish to ene in permnent business in Colombi must, s enerl rule, chnnel theirinvestments throuh lel vehicle, such s subsidir or brnch of forein compn.
3. Colombin commercil lw is flexible nd modern with rerd to subsidiries, nd it llows the cretion ofsole shreholder investment vehicles, whereb the libilit of the sole shreholder is limited to the mountof the correspondin contribution.
4. To crr out businesses in Colombi, forein investors do not need locl prtner or investor. Withfew exceptions,1the entire equit of corporte entit cn be forein-owned nd there re no lelrestrictions on its subsequent reptrition.
5.The incorportion of lel vehicle is, in enerl terms, simple nd expeditious, nd does not require priorovernment uthorition.
In Colombi, constitutionl principles such s the riht ofssocition2, the riht to equlit3, nd the protection offree enterprise nd privte inititive, enble the cretionof entities tht receive locl nd forein investments.This chpter summries the most relevnt lel spectsbout the most commonl used tpes of lel entities inColombi.
The S.A.S hs been welcomed b the business communitsince its lel cretion5 in 2008, prticulrl, becuseof its flexibilit in terms of the incorportion process,dministrtion, nd the mple freedom its shreholdershve to estblish the terms nd conditions for itsfunctionin nd internl structure. Thus the S.A.S.privilees the shreholders will, which is mnifestedthrouh the compns blws s the primr sourceto such entits reultion; s result of lw opertinonl in subsidir w. The possibilit to be the brnch
of forein compn is lso noteworth, prticulrlfor the minin nd hdrocrbon sectors, due to foreinexchne dvntes nd the flexibilit it offers to fundthe explortion ste.
1. See Chpter 2 on forein investment.2. Article 38 Politicl Constitution.3. Article 13 Politicl Constitution.4. There re other lel vehicles such s limited prtnership nd sole proprietorships. These re not commonl used b forein investors becuse of the unlimited libilit of the prtners nd wide specil rules for dministrtion ndunderwritin limittions for certin contrcts.5. Lw 1258 of 2008.
3.1. Most common legal vehicles to carry
out permanent activities in ColombiaThe most frequentl used vehicles b forein investors tochnnel their investments to Colombi re: (i) Simplifiedstock compn (S.A.S., in Spnish); (ii) Limited libilitcompn; (iii) Corportion; nd (iv) Forein compnbrnch.4
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3. Corporte reultions
The most relevnt spects rerdin Colombin commer-cil compnies re explined below:
Colombin commercil compnies re incorported bmens of public deed formlied before public notror notried privte document, dependin on the vehiclechosen b the investor to crr out its investment inColombi.
The comprtive tble t the end of this chpter indictesthe w in which ech tpe of commercil compn isincorported s well s its requirements.
The compnies tht reister with the commercil reistrkept b the Chmber of Commerce must obtin the RUT,which is processed vi form creted for this purpose ndm be downloded from the website of the ColombinTx Authorit (DIAN in Spnish) t www.din.ov.co.
Reultions for the reistr of the RUT require lel
entities to demonstrte the ownership of checkin orsvins ccount, for which pre-RUT form must be filledout previousl. Once the certificte of ownership of thecheckin or svins ccount is issued, the issunce of thedefinitive RUT m be requested t DIAN.
In ddition to the certificte tht proves the ownership ofthe checkin or svins ccount, the followin documentsmust be submitted:
Commercil corportions must reister in the commercilreistr kept b the correspondin Chmber of Commerce ofthe cit where the compn is to be bsed.6
To reister the compn, the corportions blws hve tobe submitted, s well s other documents tht the Chmberof Commerce m request, nd the letters of cceptnce ofthe persons ppointed s mners nd sttutor uditor(in the event the compn requires one). Additionll in orderto obtin the compns reistrtion the correspondin feesnd txes must be pid before the Chmber of Commerce.
3.2.1. Document of incorporation
3.2.3. Obtaining of the National TaxRegistry (RUT in Spanish)
3.2.2. Commercial registration
3.2. Commercial companies
6. Article 28, Code of Commerce.7. Articles 65 nd 259 of the Civil Procedure Code nd 480 of the Code of Commerce.8. Article 260 of the Civil Procedure Code.
1. Cop of the identifiction crd of the personwho will be fillin the request before theDIAN, for which the exhibition of the oriinlidentifiction crd will be required, nd
2. Cop of utilities invoice (wter, electricit,telephone, s nd others whose provision issubject to supervision b the Superintendencof Utilities), with exhibition of the oriinlinvoice or of the oriinl cdstrl nomenclturebulletin for the correspondin er ofreistrtion, propert tx return or properttx pid receipt, which must correspond to theddress provided on the reistrtion form ofthe RUT.
Once the correspondin RUT hs been obtined, n updto the commercil reistrtion must be requested t tChmber of Commerce in order for the finl Tx ID Numb(NIT) to be incorported in such reistr.
If the prospective prtners or shreholders cnnot bepresent or re vilble in the countr in order to ttendthe incorportion procedures, the must rnt dullelied written power of ttorne. If the investorcountr is sintor to the 1961 Hue ConventionAbolishin the Requirement for Lelition forForein Public Documents, the document must bepostilled. Additionll, document issued b publicnotr (or competent officil) must be includedcertifin its incorportion nd lel representtion.This certificte must lso be dul postilled. Ifthe countr of the investor is not sintor of theHue Convention, the power of ttorne must belelied b public notr s described bove ndsubmitted before the Colombin consulte where the
consulr officer will certif the incorportion ndlel representtion of the compn rntin thecorrespondin power of ttorne, s well s the fcttht the compn is exercisin its corporte purposein ccordnce with the lws of such countr.7
Documents issued in lnue different to Spnishmust be trnslted b n officil trnsltor duluthoried in Colombi nd whose sinture islelied b the Ministr of Forein Affirs.8
3.2.4. Power of attorney and otherdocuments issued abroad
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3. Corporte reultions
9. With some exceptions, such s finncil entities.10. See Chpter 2 on forein investment.11. Numerl 7.2.1.6 of the Colombin Centrl Bnks DCIN 83 circulr.12. Superintendenc of Compnies - Circulr 001 of 200713. Lw 1014 of 2006.14. Code of Commerce, Article 110.
3.2.5. Payment of capital andregistration of the foreign investmentIn principle, Colombin leisltion does not require minimum cpitl contribution to incorporte commercil
compnies.9
This implies tht the cpitl contribution is setb the shreholders or prtners, s m be the cse, withrerd to the ctivities tht the compn plns to crr outin Colombi.
The contribution reime (csh, in kind nd work) forcommercil compnies is quite flexible nd it llows forret diversit for shreholders nd prtners, provided thtthe ssets to be contributed re convertible into monetrvlue.
Dependin on the lel nture of the compn to beincorported, there re rules pplicble to the time of
pment of the compns cpitl. In this mnner, forbrnches nd limited libilit compnies, the cpitl must bepid t the time of its incorportion; while for corportions,t lest 50% of the uthoried cpitl must be plced ndone third of the vlue of ech stock pid t the time ofincorportion; nonetheless, the outstndin plced cpitlhs to be entirel pid within er. With respect to theSimplified Stock Compnies, there re no cpitl rtios thtdetermine the proportion in which shres hve to be pid tits incorportion, et the plced cpitl must be pid within mximum period of two ers.
Forein currenc enterin the countr on behlf of
nonresidents, which is destined to cpitl contributions of compn, must be reistered s forein investment with theColombin Centrl Bnk, b mens of the chnnelin of suchcurrenc throuh intermediries of the exchne mrket duluthoried in Colombi for tht purpose, or throuh bnkccounts held brod known s compenstion ccountsreistered with the Colombin Centrl Bnk. Accordinl, thecorrespondin forein exchne declrtions must be filled,this is, Form No. 4 Exchne declrtion for interntionlinvestments.10The correct fillin out of the declrtion willbe sufficient to obtin the utomtic reistr of the foreininvestment. Conversel, if the investment is mde throuh contribution of ssets, its reistrtion should be directlrequested before the Colombin Centrl Bnk. Chpter twoof this Lel Guide to Doin Business in Colombi 2013,rerdin forein exchne reime contins detiledexplntion of the forein investment reistrtion process.
It should be tken into considertion tht the reistrtionof the forein investment hs to be updted on erl
bsis before the Colombin Centrl Bnk no lter thn June30. This oblition does not ppl to compnies tht reunder the oblition to submit finncil sttements beforethe Superintendenc of Compnies.11
As enerl rule, Colombin compnies do not requirepermits to operte in Colombi. However, there resome exceptions for compnies incorported to crrout certin ctivities which cn be of ntionl interest,such s finncil ctivities, stock brokere ctivities,insurnce services, provision of rmed privte securitnd surveillnce services or n other ctivit involvin
the mnement nd investment of funds obtinedfrom the public. These compnies will require prioruthorition from the competent dministrtiveuthorities to be incorported nd to operte inColombi.
As for the blws mendments, which must lws bepproved b the overnin bod of the compn, theenerl rule is tht n uthorition from the stteuthorities is not required. As n exception, mendmentsto blws ssocited to merers or spin-offs mrequire the prior uthorition of the Superintendencof Compnies (overnmentl entit in chre of
supervisin nd controllin compnies), provided certinconditions re met,12or of the correspondin supervisorentit nd on certin cses from the Superintendencof Industr nd Commerce. In n cse, mendmentsinvolvin reduction of cpitl with reimbursement ofcpitl contributions in n tpe of compn (except forthose tht re not supervised b the Superintendencof Compnies or n other Superintendenc nd tht donot meet certin conditions) re lws subject to prioruthorition of the Superintendenc of Compnies ndthe Ministr of Lbor.
Blws mendments of S.A.S. nd of other compniesincorported b mens of notried privte document13re lso crried out b mens of notried privtedocument. On the other hnd, blws mendments ofcompnies incorported throuh public deeds14 mustlso be formlied throuh public deed. Under nocircumstnce n mendment involvin the increse ofcpitl s result of n sset contribution tht requiresto be trnsferred b mens of public deed m bedone throuh privte document.
3.2.6. Operations and bylawsamendments of commercialcompanies
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The ppointment of the compnies dministrtors b thecompetent corporte bodies set forth in the blws, such sthe ppointment of lel representtives, tx uditors, ndmembers of the bord of directors mon others, must be
reistered in the commercil reistr kept b the chmberof commerce.15
For such purposes, the document notifin the ppointment,the letter of cceptnce, nd photocop of the ppointedpersons identit document shll be submitted.
Except for sttutor uditors, who hve to be Colombinpublic ccountnts, the mners of the compn m beforeiners not domiciled in Colombi.
3.2.7. Appointments
A compn is subordinte or controlled compn whenits decision-mkin uthorit is subject to the will of otherperson(s), whether individuls or lel, the ltter bein its prentor controllin compn. This control m be economic, politicl,or commercil nd it m be exercised throuh mjorit orcontrollin interest in the corporte cpitl of the subordintecompn, or throuh the execution of contrct or otherinstrument tht enbles prt to exercise dominnt influence
over the dministrtive bodies of the controlled compn,mon others.
If the prent compn exercises direct control over thesubordinte compn, the ltter is considered n ffilite; ifon the contrr, the prent compn exercises control withssistnce of the subordinte compn or throuh it, tht is,indirectl, it is clled subsidir. In this rerd, it is importntto hihliht the followin topics:
The lw reconies tht n entit mexercise control over nother entit withoutn cpitl prticiption in it.
Likewise, it is reconied tht corportecontrol cn be exercised b individuls ornon-corporte lel entities. Nonetheless,the controlled compn m onl hve corporte nture.
3.2.8. Regulation of parent Companies,subordinate companies, and businessgroups
In order to determine the existence of corporte rouin ddition to the reltionship of subordintion or contr common purpose nd direction mon ll the entiticomprised in the roup must exist.
The lw estblishes tht common purpose nd directiexist when the ctivities of ll the entities re desined chieve n objective defined b the prent or controllicompn b virtue of the direction tht it exercises over troup, notwithstndin the bilit of ech member to pursits corporte purpose individull.
The existence of sitution of control nd/or corporroup16must be reistered before the commercil reistof ech one of the relted compnies, menin before tcommercil reistr of the controllin compn nd of tcontrolled one, in order for such sitution to be disclosed third prties. Reistrtion must be completed within thirds fter the dte the control sitution or corporte ro
becme existent. In this extent, the sitution of control ndor business roup produces other oblitions with rerd ccountbilit nd preprtion of consolidted informtiunder the compn dministrtors responsibilit.
15. Code of Commerce, Article 28.16. Lw 222 of 1995, Article 30.17. Certified finncil sttements re those for which the lel representtive nd the ccountnt of the compn dectht the contents of the finncil sttements hve been previousl verified ccordin to the reultions nd tht contents hve been drwn directl from the compns records.18. Audited finncil sttements re certified finncil sttements tht re ccompnied b the uditors professjudment or of the independent ccountnt tht elborted them, rerdin the fct tht ll the informtion providin ccordnce with enerll ccepted uditin stndrds.19. Article 29, Decree 2649/1993.
The purpose of finncil sttements is to provide informtito those who hve no ccess to the compns recorbout the controlled ssets, the libilities tht m requ trnsfer of resources, chnes in equit, nd the nnuresults.
Commercil compnies must close their books issue certified17 nd udited18 enerl-purpose finncsttements t lest once er, on December 31. Howevthe prtners or shreholders m ree, within the terms the blws, to issue the finncil sttements on differend dditionl dtes. It is importnt to note tht in the eveof merer, spin-off or trnsformtion, the compn muprepre extrordinr finncil sttements.19
Generl-purpose finncil sttements re those preprt the end of specific period to provide informtion undetermined users interested in evlutin the cpci
of n economic entit to enerte positive csh flowThe finncil sttements include: the blnce sheet, tincome sttement, the sttement of chnes in equit, tsttement of chnes in finncil position nd the cflow sttement. Finncil sttements must be cler, concisneutrl, nd redil vilble.
3.2.9. Financial statements
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3.2.10. Profits
Profits re distributed on the bsis of true nd reliblefinncil sttements prepred in ccordnce withenerll ccepted ccountin principles, fter settinside the lel, sttutor nd occsionl reserves,22swell s the ppropritions for the pment of txes,in proportion to the pid portion of the pr vlue ofthe stocks, shres, or equit stke of ech prtner orshreholder, if the blws do not provide otherwise. Itmust be noted tht for the S.A.S., the lel reserve is notmndtor, provided such reserve is not contemplted inthe compns blws.
Cluses, which deprive n shreholder or prtner of full
prticiption in the profits, will be disrerded.23
Pursunt to the current tx leisltion, the profits of compn re lible to tx onl once, either b the compnor b the shreholder. Thus, if the compn ps thecorporte income tx on profits, the shreholder does nothve to p n dditionl tx on the received dividends. Ifthe corporte income tx is not pid b the compn, thedistributed dividends on behlf of non-resident individul orcompnies will be subject to 33% income tx rte, whichwill be withheld b the compn.
3.2.11. Tax payments by the shareholdersof a company in Colombia
The extinction of lel entit occurs s consequence ofthe dissolution nd subsequent liquidtion of compn.Therefore, the dissolution mrks the initition of the windin-up process, which ends with the ctul liquidtion of the
entit nd the cncelltion of the commercil reistrtion ofthe compn. Dissolution cn come bout b the expirtion ofthe period reed to b the equit holders for the corporte lifeof the entit, or b the occurrence of certin circumstnces(prescribed b lw or the blws) tht prevent continutionof ctivities in furthernce the corporte purpose. Thesecircumstnces could be, for exmple, decision b thehihest corporte bod or the relevnt uthorities, or theextinction of the object which exploittion constitutes thecorporte purpose, or the ccumultion of losses tht reducethe compns equit below 50% of its cpitl, when suchsitution is not solved within the lel term, mon others.24
When the compn hs been dissolved nd is in processof liquidtion, its corporte purpose is restricted to sinle objective, tht is: to liquidte the ssets to p noutstndin libilities, nmel, to proceed with ll stepsnecessr to wind up the lel entit.25However, once inititedthe windin-up process, there re certin mechnisms thtllow termintion of such process in order for the compnto continue performin its socil purpose. These mechnismscorrespond to the rectivtion, the improper merer nd thereconstitution of the compn, ech of which provide fordifferent conditions nd times in order to be vible.
Within the wind-up process nd provided form nd timerequirements re met, creditors re entitled to presentthemselves in order to file their clims nd obtin pmentof their credits in the order nd with the priorit ndpreferences estblished b lw.
Once the finl liquidtion sttement of the compn isreistered in the commercil reistr kept b the Chmber ofCommerce, the compn must lso file income tx return forthe correspondin portion of the er nd proceed to cncelthe RUT before the DIAN nd the forein investment withthe Colombin Centrl Bnk.
3.2.12. Dissolution and winding-upThe finncil sttements shll be nnull deposited in theChmber of Commerce of the compns domicile,20if thecompn is not under the oblition to submit them beforethe Superintendenc of Corportions.21
For tx control purposes, corporte roups tht re reisteredin the commercil reistr of the Chmber of Commercemust submit before the DIAN their consolidted finncilsttements on mnetic medi, no lter thn June 30 ofech er.
Chpter fourteen of this Lel Guide to Doin Business inColombi 2013, rerdin ccountin reime, contins detiled description of the ccountin reultions pplicblein Colombi.
20. Article 41, Lw 222/1995.21. Article 150, Decree 19/2012.22. Article 451, Code of Commerce.23. Article 151, Code of Commerce.24. Article 218 of the Code of Commerce nd rticle 34 of Lw 1258 of 2008.25. Article 222 of the Code of Commerce.26. Article 263, Code of Commerce.27. Article 471.
3.3. Foreign company branchBrnches from forein compnies re onoin concernsopened b compn for the development of its corportepurpose,26for this reson brnches do not hve n independentlel personlit different from tht of the compn, whichmens tht the brnch nd the forein compn (minoffice) re the sme lel entit nd, therefore, the brnchwill never hve lel cpcit reter thn or different fromtht of its min office. The Colombin Code of Commerce27
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sets forth tht if forein compn wishes to crr outbusiness in Colombi on permnent bsis, it must estblish brnch in the countr.28
The followin re considered permnent ctivities, et reestblished b the lw in merel enuncitive mnner:29(i) openin commercil estblishments or business offices,even if the onl offer consultin services; (ii) prticiptions contrctor in projects or the provision of services;(iii) prticiption in n w in ctivities relted to themnement or investment of funds obtined fromprivte svins; (iv) prticiption in n of the sementsor services of the extrctive industries; (v) the lloction of concession from the Colombin Government, trnsferof or prticiption in the exploittion of the object of thisconcession in n mnner; nd (vi) holdin shreholder,prtner or bord of directors meetins, or mnin, ordministrtin in Colombi.
For these purposes, in ddition to this list of ctivities, it islso worth notin tht the Colombin lw does not providefor specific criteri or term of durtion to define whethern ctivit is permnent or not, therefore permnence willdepend on the prticulr circumstnces in which the ctivitis performed in Colombi, such s the nture or scope ofctivit, the infrstructure tht is required to in Colombi forits execution, its reulrit, the recruitment of personnel inColombi, mon others.
3. Corporte reultions
3.3.1. Creation
To crete forein compn brnch in Colombi, theblws of the forein min office must be formliedb mens of public deed nd the followin must lsobe submitted: (i) cop of the min offices decision toopen brnch in Colombi, pproved b the competentcorporte bod; nd (ii) the documents tht certif thtthe officers hve the uthorit to represent the compn.These documents must be dul lelied30or postilledin the countr of oriin, nd, if issued in lnue otherthn Spnish, the must lso be trnslted into Spnishb n officil trnsltor.
The resolution uthoriin the cretion of the brnch isissued b the min office nd it must include, t lest, thefollowin info:
3.3.2. Creation resolution
The nme of the brnch.
The business it intends to pursue.
The mount of the ssined cpitl
nd of cpitl from other sources, ifn.
The domicile of the brnch.
The durtion of its business in thecountr nd the cuses for termin-tion.
The ppointment of enerl repre-senttive, with one or more lterntes,to represent the brnch in the businessctivities tht it intends to pursue in
Colombi.
The ppointment of the tx uditor,who must be Colombin resident.
28. Pursunt to rticle 471 of the Code of Commerce nd the Expert Opinion No. 220-065654 of 18 November of 2005of the Superintendenc of Compnies, forein compn m crr out its permnent ctivities in Colombi b openin sinle brnch.29. Code of Commerce, Article 472.30. The documents will be submitted to postille or lelition dependin if the countr where the forein compn isincorported is member or not of the Hue Convention.31. The dditionl investment to the llocted cpitl is n equit ccount tht functions s current ccount betweenthe brnch office nd the min office for the mnement of resources between the two entities.Article 207 of the code of Commerce.
The forein compn brnch must reister in the commercreistr kept b the Chmber of Commerce in the jurisdictiwhere the brnch will be bsed, under the sme terms nconditions stted bove for commercil compnies.
3.3.3. Registration
Forein currenc enterin the countr, which is destinto the llocted cpitl of the brnch, must be reisteres forein investment before the Colombin CentrBnk, b mens of its chnnelin throuh exchnmrket intermediries in Colombi dul uthoried to so, or throuh compenstion ccounts reistered with t
Colombin Centrl Bnk. Consequentl, Form No. 4 Exchndeclrtion for interntionl investments must be filleProper fillin out of Form No. 4 will be sufficient to obtutomtic reistrtion of the forein investment.
Additionl mone remittnces from the min office m chnneled s supplementr investment to the ssincpitl,31which constitutes direct forein investment, withe oblition to be reistered before the Colombin CentrBnk ccordin to the bove mentioned.
3.3.4. Registration of foreigninvestment
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32. Article 207, Code of Commerce.33. Article 29 of Lw 1429 of 2010.
3.3.5. AmendmentsAmendments to the blws of the min office or to theincorportion resolution of the Colombin brnch mustbe formlied before public notr in the domicilewhere the brnch is bsed. The documents issuedbrod must be lelied s indicted bove for thepowers of ttorne.
3.3.6. AppointmentsThe ppointment of the representtives nd thesttutor uditor of the brnch must be reisteredin the commercil reistr kept b the Chmber ofCommerce. For such purposes, the document notifinthe ppointment dul lelied or postilled, theletter of cceptnce nd cop of the ppointedpersons identit document shll be submitted. Therepresenttives of the brnch m be foreiners notdomiciled in Colombi.
3.3.8. DecisionsExcept for the enerl ents uthorit to mkedministrtive decisions nd those reltin to theordinr course of business ssined to the enerlent, the decision-mkin uthorit is held b thepproprite corporte bod of the min office, inccordnce with pplicble corporte reultions in thecountr of oriin of the min office.
3.3.7. Corporate bodiesThe forein compn brnch is n onoin concern.Therefore, its min corporte bodies re the sme sthose of the min office. However, the brnch hs enerl representtive, who mnes the estblishmentnd represents the forein compn in trnsctions
Bsed on the fct tht brnch is n extension of the minoffice nd depends on it to subsist, brnch will be liquidtedin ccordnce with the sme cuses provided nd pplicbleto the min office.
The rounds for liquidtion tht ppl to Colombincompnies cn lso ppl to f, provided the re comptiblewith its lel nture.
A forein compn brnch m lso be rectivted tn time fter the windin-up process hs been initited,provided tht the externl libilities re not reter thn 70%of the corporte ssets nd tht the reminin ssets hvenot been distributed to the min office.33
All profits enerted b the brnch will be distributedccordin to the results of the end of er blnce sheet.Thus, the brnch m not mke dvnce pments orremittnces to the min office on the bsis of presumedprofits. For tx purposes, the trnsfer of profits from thebrnch to its min office is ssimilted to dividends.
3.3.9. Special causes for winding-up
3.3.10. Profits
If the brnch (other thn those prt of the specil exchnereime) is not under the oblition to submit finncilsttements before the Superintendenc of Compnies, itmust updte on erl bsis to the Colombin CentrlBnk the reistrtion of the direct forein investment bfillin out Form No. 15 Equit concilition for compniesnd brnches enerl reime no lter thn June 30 ofever er.
For specil exchne reime brnch, is mndtor toupdte nd inform to the Centrl Bnk the supplementrinvestment mde to ssined cpitl, no lter thn June 30of ech er, throuh the fillin out of Form No. 13 Reistr ofsupplementr investment to ssined cpitl nd updtinof equit ccounts--specil exchne reime brnch. Thisoblition is independent from finncil reports tht hveto be submitted before the Superintendenc of Compnies.
before third prties. Additionll, the lw provides tht itis mndtor for forein compnies brnches, to ppoint sttutor uditor, who must crr out the externludit ccordin to the functions stted b the lw.32
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3. Corporte reultions
3.4. Steps and related costs of setting up the vehicles
3.4.1. Simplified Stock Company (S.A.S.):
The steps nd ssocited costs of settin up the vehicles re the followin:
1
N. ACTIVITY AND/OR DOCUMENT
ACTIVITY AND/OR DOCUMENT
COST
COST
2
3
4
6
5
Personl ppernce of the ttorne in fct or the shreholder before public notr to formlie the incorportion throuh privte document.
Reistrtion of the privte incorportion document (blws) in theChmber of Commerce of the cit where the compn is to be bsed.
Blws must be ccompnied b ll documents required b theChmber of Commerce. Reistrtion duties nd txes must be pid.
Pre-Rut request for the cquisition of bnk ccount in Colombi.
Processin the RUT with DIAN.
Request the certificte of incorportion nd lel representtionissued b the Chmber of Commerce.
Updte request of the certificte of incorportion nd lelrepresenttion of the compn before the Chmber of Commerce to
include the definitive tx identifiction number (NIT, in Spnish). A copof RUT issued b DIAN must be ttched.
Notrs fee COP 4,000 (pprox. USD 2).
0.7% of the subscribed cpitl vlue of thecompn (reistrtion tx) + COP 31,000
(pprox. USD 17) (reistrtion fees).
No chre.
No chre.
No chre.
COP 4,100(pprox. USD 2).
3.4.2. Foreign company branch
1
N.
The blws of the min office nd n otherdocument required b the Colombi Code of
Commerce must be formlied b mens of public deed.
3 X 1,000 over thessined cpitl to the
brnch (notril fees) + 16%VAT over such notril fees.
2Reistrtion in the Chmber of Commerce of the
public deed indicted bove.
Up to 0.7% of the ssinedcpitl vlue of the
compn (reistrtion tx)+ COP 31,000 (pprox. USD
17) (reistrtion fees).
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3. Corporte reultions
4
5
6
Processin the RUT before the DIAN.
Request updte of the certificte of incorportionnd lel representtion of the compn before
the Chmber of Commerce to include thedefinitive NIT. A cop of RUT issued b DIAN must
be ttched.
Request the Certificte of incorportion ndlel representtion issued b the Chmber ofCommerce.
No chre.
No chre.
COP 4,100(pprox. USD 2).
3Pre-Rut request for the cquisition of
bnk ccount in Colombi.No chre.
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3.4.3. Corporations and limited liability company
1
N.
2
3
4
5
6
The blws must be formlied b mens of public deed or b notried privte document ofincorportion, in the event the compn meets the
requirements set forth in Lw 1014 of 2006.
Reistrtion of the public deed before the Chmberof Commerce of the jurisdiction where the
compn is be to be bsed.Blws must be ccompnied b ll documents
required b the Chmber of Commerce.Reistrtion duties nd txes must be pid.
Pre-Rut request for the cquisition of bnk ccount in Colombi.
Processin the RUT before the DIAN.
Request updte of the certificte of incorportionnd lel representtion of the compn beforethe Chmber of Commerce in order to include thedefinitive NIT. A cop of the RUT issued b DIAN
must be ttched.
Request the certificte of incorportion ndlel representtion issued b the Chmber of
Commerce.
3 X 1,000 over the socilcpitl or subscribed
cpitl (notril fees) +16% VAT over notril
fees, in the event of thepublic deed. In the cse ofnotrition of privte
document of incorportion,COP 4,100 (pprox. USD 2)
0.7% of the socil cpitl orsubscribed cpitl vlue ofthe compn (reistrtiontx) + COP 31,000 (pprox.USD17) (reistrtion fees).
No chre.
No chre.
No chre.
COP 4.100 (prox. USD 2).
ACTIVITY AND/OR DOCUMENT COST
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3. Corporte reultions
3.5. Time for the incorporation of legal vehicles in ColombiaAs result of the procedures nd requirements for the incorportion of the different vehicles nled bove, plese findbelow n estimte of the time required for the incorportion of such vehicles. The ds re expressed in workin ds.
Corporte documentselbortion ste (2 weeks
pprox.)
- Perprtionnd lelition/postille ofcorportedocuments: (i)power of ttorne;
(ii) blws; (iii) forbrnches blwsof its min officend resolution toincorporte thebrnch.
- Chnnel offorein currenccorrespondin tothe contributions.
- Automticreistrtionof the foreininvestmentbefore theColombinCentrl Bnk.
- Receipt ofdocuments for theestblishment orincorportion of thecompn or brnch.
- Execution of theprivte document/public deed for theincorportion of thecompn or brnch.
- Processin of NITfor the compn orbrnch before theDIAN.
- Openin ofbnk ccount.
- Request of pre-Rut to open thebnk ccount.
- Reistrtionbefore the chmberof commerce of theprivte document/public deed ofincorportion of thecompn or brnch.
- Reistrtionof theppointments (lelrepresenttives,bord of directorsmembers, externludit, if pplicble.
From this point on,the compn orbrnch hs full lelcpcit to executereements nd filereistrtions etc.
D 0 D 2 D 6 D 8 D 10 D 15
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3.6. Steps and costs for the voluntary winding-up of vehiclesThe steps nd costs to dissolve nd liquidte the vehicles re s follows:
3.6.1. Simplified stock corporation (S.A.S., in Spanish):
1
7
N. ACTIVITY AND/OR DOCUMENT COST
2
9
3
4
6
8
10
5
Shreholders meetin pprovin the dissolution of the compn.This corresponds to n mendment to the compns blws,therefore should be done b mens of privte document with
personl ppernce before notr public nd reister with theChmber of Commerce.
Reistrtion in the Chmber of Commerce of the finl settlementccount nd cncelltion request to mercntile reistr.
Appointment of liquidtor nd reistrtion of this ppointmentwith the Chmber of Commerce.
Filin of income tx return for the correspondin frction of theer.
Written submission to the DIAN notifin the liquidtion.Notifiction to creditors nd third prties bout theliquidtion b mens of published notifiction in
newspper of the compns domicile.
Elbortion of the compns inventor nd determintion ofexternl libilities.
Approvl of the finl liquidtion ccount b the shreholdersmeetin. Determintion of the remnnt.
In cse of remnnt, it should be distributed to shreholders.
Filin of NIT cncelltion request before the DIAN.
Sle of corporte ssets nd pment of externl libilities.
Notr fees COP 4,000 (bout USD 2) + 16% VAT.
Reistrtion tx t nominl vlue: COP 109,600
(pprox. USD 60) + COP 31,000 (pprox. USD 17)
(entr fee).
With reminin: 0.7% of the reminin vlue + COP
31,000 pprox. USD 17) (entr fee). No remnnts, COP
109,600 (pprox. USD 60) + $ 8,300 (pprox. USD 5)
(cncelltion request).
Reistrtion tx - COP 109,600 (pprox. USD 60)
+ COP 31,000 (pprox. USD 17) (entr fee).
Vlue of txes determined.
Approximtel COP 500,000 (pprox.
USD 278) (publiction).
No chre.
No chre.
No chre.
No chre.
No chre.
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3.6.2. Foreign company branch
1
7
N. ACTIVITY AND/OR DOCUMENT COST
Resolution of the min office providin the dissolutionof the brnch; incorportion of such resolution in public deed nd reistrtion before the Chmber of
Commerce.
Reistrtion in the Chmber of Commerce of thefinl settlement ccount nd cncelltion request to
mercntile reistr.
Notr fees + 16% VATChmber of Commerce Reistrtion COP109,600 (pprox. USD 60) + COP 31,000
(pprox. USD 17) (entr fee).
With reminin: 0.7% of the remininvlue + COP 31,000 (pprox. USD 17)
(entr fee). No remnnts, COP 109,600(pprox. USD 60) + $ 8,300 (pprox. USD
5) (cncelltion request).
2
4
6
8
10
9
5
3
Appointment of liquidtor nd reistrtion of thisppointment before the Chmber of Commerce.
Elbortion of the brnchs inventor nd determintionof externl libilities to p.
Approvl of the finl liquidtion ccount b the min
office. Determintion of the remnnt.
In cse of remnnt, it should be remitted to the minoffice.
Filin of NIT cncelltion request before the DIAN.
Filin of income tx return for the correspondinfrction of the er.
Sle of corporte ssets nd pment of externllibilities.
Written submission to the DIAN notifin theliquidtion. Notifiction to creditors nd third
prties bout the liquidtion b notice published in newspper of the brnchs domicile.
Reistrtion tx - COP 109,600 (pprox.USD 60) + COP 31,000 (pprox. USD 17)
(entr fee).
No chre.
No chre.
No chre.
No chre.
Vlue of txes determined.
No chre.
Approximtel COP 500,000 (pprox.USD 278) (publiction).
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ACTIVITY AND/OR DOCUMENT COST
10 Filin of NIT cncelltion request before the DIAN. No chre.
3. Corporte reultions
1
7
3
N.
Shreholders meetin or prtnership bord pprovinthe compns dissolution. This corresponds to nmendment to the compns blws, therefore it
should be done b mens of public deed or notriedprivte document if the requirements of Lw 1014 of
2006 re fulfilled. Such document should be reisteredbefore the Chmber of Commerce.
Recordin in Chmber of Commerce of the finlsettlement ccount nd cncelltion request to
mercntile reistr.
Written submission to the DIAN notifin theliquidtion. Notifiction to creditors nd third
prties bout the liquidtion b notice published in newspper of the compns domicile.
Appointment of liquidtor nd reistrtion of this with
the Chmber of Commerce.
Development of the brnchs inventor nddetermintion of externl libilities to p.
In cse of remnnt, it should be distributed mon theshreholders.
Filin of income tx return for the correspondinfrction of the er.
Sle of corporte ssets nd pment of externllibilities.
Approvl of the finl liquidtion ccount b theshreholders meetin. Determintion of the remnnt.
Notril fees t nominl vlue + 16% VATnotril chres
COP 4,000 (bout USD 2).
Reistrtion tx t nominl vlue: COP109,600 (pprox. USD 60) + COP 31,000
(pprox. USD 17) (entr fee).
With reminin: 0.7% of the remininvlue + COP 31,000 pprox. USD 17)
(entr fee). No remnnts, COP 109,600(pprox. $ 60) + $ 8,300 (pprox. USD 5)
(cncelltion request).
Approximtel COP 500,000 (pprox.USD 278) (publiction).
Reistrtion tx - COP 109,600 (pprox.USD 60) + COP 31,000 (pprox. USD 17)
(entr fee).
No chre.
No chre.
Vlue of txes determined.
No chre.
No chre.
3.6.3. Corporation and limited liability company
2
4
8
9
5
6
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3. Corporte reultions
3.7 Time for dissolution and winding-up of legal vehiclesFollowin the procedures nd requirements for dissolution nd voluntr windin-up of different vehicles nled bove, thefollowin is n estimte of the steps nd the term to fulfill them. The ds re expressed in workin ds.
D 5D 1 3 meses*D 10 D 150 D 160 D 170
Shareholders
meetin / prtnershipbord or minoffice decreeinthe disolution ndthe beinnin ofthe compns orbrnchs liquidtion.
Inventor
development ofcompn nd theexternl libilitdetermintion.
Approvl of the finlsettlement ccountnd determintion of
the remnnt.
Distribution ofremnnts toshreholders/prtners ormin office.
Notifictionto the DIAN,creditorsnd thirdprtiesbout thewindin-upprocess.
Presenttionof income txreturn.
Sle of oods ndpment of externllibilities.
Formlitionof public deeddeterminin theliquidtion ofthe compn orbrnch or notriedprivte document,if pplicble.
Request cncel ofNIT before thenDIAN.
Appointment ofliquidtor.
Reistrtion withthe Chmber ofCommerce.
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3.8 Comparative analysis of the different vehicles from a legal perspective
SUMMARY TABLE OF TYPES OF COMMERCIAL COMPANIES ANDFOREIGN COMPANY BRANCH
The followin summr tble shows the min chrcteristics of the most commonl used vehicles in order to chnnel foreiinvestment, indictin similrities nd differences.
LIMITED LIABILITYCOMPANY
INCORPORATION
NUMBER OFPARTNERS /
SHAREHOLDERS
LIABILITY
SIMPLIFIED STOCKCOMPANY
FOREIGN COMPANYBRANCH
CORPORATION
Usull, b mens
of public deed.However, it m beincorported b
privte document ifthe compn meetsthe requirements setforth in Lw 1014 of
2006.
Limited to themount of the cpitlcontribution for noblition, unless the
blws stipulte reter responsibilitfor ll or some of theprtners. Prtners re
not lible for pmentof n debt, except fortx oblitions or lbor
libilities, for whichthe re severll ndjointl lible with the
compn.
The compns libilitfor n oblition is
limited to the mountof the shreholdersequit. In principle,shreholders re
not lible for creditoblitions, unless specific urnteehs been provided.
Shreholders shll belible beond the vlueof their contributions
for frud, or theprent or controllincompn is lible in subsidir mnnerwith rerds to thecompn it controlswhen the ltter is
insolvent or underoinjudicil liquidtion
due to ctions of theprent or controllin
compn.
The compns libilitfor n oblition is
limited to the mountof its equit. In
principle, shreholdersre not lible for n
debt incurred intob the compn.
Shreholders rejointl nd severlllible onl when thecompn is used toviolte the lw or
cuse dme to thirdprties.
The forein minoffice is lible for thectivities in Colombi
Accordinl, if the
brnchs equit isnot enouh, the minoffice m be lible.
Minimum twoprtners, mximum
25.
Usull, b mensof public deed.
However, it m beincorported b
privte document ifthe compn meetsthe requirements ofLw 1014 of 2006.
Minimum fiveshreholders, noneof which m hve
95% or more ofthe outstndin
cpitl stocks of thecompn.
Minimum oneshreholder, no
mximum limittionprovided b lw.
Does not ppl.
Resolution from themin office must beformlied b mens
of public deed.
Usull b mens of privte document.
Nonetheless, if thecontributions includessets tht ccordinto the pplicble lwrequire public deedfor its ssinment,
incorportion must beformlied b mens
of public deed.
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CAPITAL
RESERVES
SOCIAL PURPOSE
TERM OF DURATION
ASSIGNMENT OFSHARES/STOCK
Prtner contributionsshll be pid in full
when the compn isincorported, s wells when n increse
is reed.
The lel reserve isequivlent to 10% ofthe nnul net insup to n equivlent
of 50% of thecompns equit.
Socil purpose shllbe determined,
nd the compns
lel cpcitwill be restrictedto ctivities
contemplted undersuch socil purpose.
Defined (with thepossibilit to beextended b the
prtners).
Sle or ssinmentof the limited
prtnership shresimplies tht the
compns blwsmust be mended.The decision to sell
or ssin shresmust be lelied bmens of public
deed dul reisteredwith the Chmber of
Commerce.
Does not ppl.
Initill, shres refreel trnsferble
nd no blwsreform is requiredfor their neotition.Shre ssinmentm be crried outb endorsin thecertifictes nd
reisterin them inthe stock leder. The
trnsfer of shresm be limited b theblws estblishin lien in fvor of the
compn nd theshreholders t thetime of neotition.
Initill, shres refreel trnsferble
nd no blws
reform is requiredfor their neotition.Shre ssinmentm be crried outb endorsin thecertifictes nd
reisterin them inthe stock leder.
Assinment cn belimited up to ten
ers nd be subjectto uthorition of shreholders meetinor n other corportebod or to preferentil
subscription rihts.
At the moment of
incorportion theshreholders mustsubscribe t lest
50% of the uthoriedcpitl nd p t
lest 1/3 of thesubscribed cpitl.The reminin 2/3
must be pid within er.
The lel reservefor corportion isequivlent to 10% ofthe nnul net insup to n equivlent
of 50% of thesubscribed cpitl.
Socil purpose shllbe determined,
nd the compns
lel cpcitwill be restrictedto ctivities
contemplted undersuch socil purpose.
Defined (with thepossibilit to beextended b theshreholders).
The subscription nd
pment of cpitlcn be mde underthe conditions, in theproportion nd terms
estblished b theshreholders. In n
cse, shreholders hve term of two ers top for the subscribed
shres.
No lel reserveis mndtor,
unless otherwisecontemplted in thecompns blws.
Socil purpose m beundetermined, llowin
the compn toperform n licit ct ofcommerce.
M be indefinite.
Once the brnch isincorported, ll thessined cpitl must
be pid. Additionlcpitl m be
ssined b mensof supplementrinvestment to thessined cpitl.
The lel reserve for brnch is equivlentto 10% of the nnulnet ins up to n
equivlent of 50% ofthe ssined cpitl.
Socil purpose shll bedetermined, nd the
brnchs lel cpcitwill be restricted tothe min officessocil purpose.
Defined (with thepossibilit to be
extended b the minoffice dependin onthe term of durtion
of such entit.)
LIMITED LIABILITYCOMPANY
SIMPLIFIED STOCKCOMPANY
FOREIGN COMPANYBRANCH
CORPORATION
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FOREIGN INVESTMENT
TAX LIABILITY
Investment of privtecpitl in moneis utomticllreistered beforethe Colombin
Centrl Bnk whenthe correspondin
exchne declrtion(Form No. 4) is
processed with nexchne mrket
intermedir(commercil
bnk), or throuh compenstion
ccount reisteredbefore the Colombin
Centrl Bnk.
The prtners ndthe compn reseverll lible
towrds the txuthorities for thenon-pment of
txes, in proportionto their prticiption
nd the period oftime durin which
the hve been ctins prtners.
In the event tx buse is
committed or if thecompn is usedwith the purposeof defrudin the
tx dministrtion
or unfirl s mechnism of txevsion, the tx
uthorit m removethe corporte veil,
nd prtners will bejointl nd severll
lible before the DIANfor the compns
oblitions resultinfrom such cts nd
for the dmescused.
Investment of privtecpitl in moneis utomticllreistered withthe Colombin
Centrl Bnk whenthe correspondin
exchne declrtion(Form. No. 4) is
processed with nexchne mrket
intermedir(commercil
bnk), or throuh compenstion
ccount reisteredbefore the Colombin
Centrl Bnk.
In the event tx buse is
committed or if thecompn is usedwith the purposeof defrudin the
tx dministrtionor unfirl s
mechnism of txevsion, the txuthorit m
remove the corporteveil, nd shreholders
will be jointl nd
severll liblebefore the DIANfor the compns
oblitions resultinfrom such cts nd
for the dmescused.
Investment of privtecpitl in moneis utomticllreistered withthe Colombin
Centrl Bnk whenthe correspondin
exchne declrtion(Form No. 4) is
processed with nexchne mrket
intermedir(commercil
bnk), or throuh compenstion
ccount reisteredbefore the Colombin
Centrl Bnk.
In the event tx buse is
committed or if thecompn is usedwith the purposeof defrudin the
tx dministrtionor unfirl s
mechnism of txevsion, the txuthorit m
remove the corporteveil, nd shreholders
will be jointl nd
severll liblebefore the DIANfor the compns
oblitions resultinfrom such cts nd
for the dmescused.
Investment of privtecpitl in moneis utomticllreistered withthe Colombin
Centrl Bnk whenthe correspondin
exchne declrtion(Form No. 4) is
processed with nexchne mrket
intermedir(commercil
bnk), or throuh compenstion
ccount reisteredbefore the Colombin
Centrl Bnk. If themin office forwrdsdditionl funds
s supplementrinvestment to the
ssined cpitl, suchforein currenc shlbe chnneled throuhthe forein exchne
mrket.
The min officend the brnch reseverll lible forthe brnchs tx
pments.
LIMITED LIABILITYCOMPANY
SIMPLIFIED STOCKCOMPANY
FOREIGN COMPANYBRANCH
CORPORATION
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TAX AUDITOR
BOARD OF DIRECTORS
GOVERNMENTCONTROLS
DIVIDENDREMITTANCES
Not required, exceptwhen (i) the vlue
of the ross ssetsis equivlent toor reter thn5,000 times thecurrent minimum
lel monthl we(pprox., USD
1,637,500),34or (ii)the ross income
for the immeditelprecedin er is
equivlent or reterthn 3,000 times
the current minimumlel monthl
we (pprox. USD982,500).35
The compn is notrequired to hve bord of directors.
This bod is optionl.
Limited Libilit
Compnies resupervised b theSuperintendenc
of Compnies onlif their ssets or
revenues re equlto or reter thn30,000 times thecurrent minimum
lel monthl
If the foreininvestment hs
been dul reisteredwith the ColombinCentrl Bnk, theinvestor will hveforein exchnerihts to remit
dividends bsed
on rel nd reliblefinncil sttements.
If the foreininvestment hs beendul reistered with
the Colombin CentrlBnk, the investor willhve forein exchne
rihts to remitdividends bsed on rel
nd relible finncil
sttements.
If the foreininvestment hs beendul reistered with
the Colombin CentrlBnk, the investor willhve forein exchne
rihts to remitdividends bsed on relnd relible finncil
sttements.
If the foreininvestment hs beendul reistered with
the Colombin CentrlBnk, the investor willhve exchne rihtsto remit profits bsed
on rel nd relible
finncil sttements.
Mndtor for stockcompnies.
The bord ofdirectors is
mndtor corportebod.
Stock compnies
re controlled b theSuperintendencof Compnies onlif their ssets or
revenues re equlto or reter thn30,000 times thecurrent minimum
lel monthlwe (pprox.
Not required, exceptwhen (i) the vlue ofthe ross ssets is
equivlent to or reterthn 5,000 times thecurrent minimum lelmonthl we (pprox.,USD 1,637,500),36 or(ii) the ross incomefor the immeditel
precedin er isequivlent or reterthn 3,000 times thecurrent minimum lelmonthl we (pprox.
USD 982.500)37.
The compn is notrequired to hve
bord of directors. Thisbod is optionl.
Simplified Stock
Compnies recontrolled b theSuperintendenc of
Compnies onl if theirssets or revenues re
equl to or reterthn 30,000 times thecurrent minimum lelmonthl we (pprox.
USD 9,825,000).40
Brnches re
supervised b theSuperintendenc ofCompnies when (i)the mount of its
ssets or revenues isequl to or reterthn 30,000 times
the current minimumlel monthl we(pproximtel USD
Mndtor forbrnches.
Does not ppl.
34. Bsed on the minimum lel monthl we for 2013, COP 589,500.35. Bsed on the minimum lel monthl we for 2013, COP 589,500.36. Bsed on the minimum lel monthl we for 2013, COP 589,500.37. Bsed on the minimum lel monthl we for 2013, COP 589,500.
LIMITED LIABILITYCOMPANY
SIMPLIFIED STOCKCOMPANY
FOREIGN COMPANYBRANCH
CORPORATION
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REPATRIATION OFCAPITAL
If the foreininvestment hs
been dul reisteredwith the ColombinCentrl Bnk, theinvestor will hveforein exchne
rihts to reptritethe invested cpitl
fter liquidtionof the compn orcpitl reductionprovided certinrequirements re
met.
If the foreininvestment hs
been dul reisteredwith the ColombinCentrl Bnk, theinvestor will hveforein exchne
rihts to reptritethe invested cpitl
fter liquidtionof the compn orcpitl reductionprovided certinrequirements re
met.
If the foreininvestment hs beendul reistered with
the Colombin CentrlBnk, the investor willhve forein exchne
rihts to reptritethe invested cpitl
fter liquidtion of thecompn or cpitlreduction provided
certin requirementsre met.
If the foreininvestment hs beendul reistered with
the Colombin CentrBnk, the investor wihve forein exchne
rihts to reptritethe invested cpitlfter liquidtion of
the brnch or cpitlreduction (both forssined cpitl
nd supplementrinvestments to thessined cpitl)provided it meets
certin requirements
38. Bsed on the minimum lel monthl we for 2013, COP 589,500.39. Bsed on the minimum lel monthl we for 2013, COP 589,500.40. Bsed on the minimum lel monthl we for 2013, COP 589,500.
3. Corporte reultions
GOVERNMENTCONTROLS
we (pprox.USD 9,825,000).38
Government controlis exercised overfinncil spectsnd requires tht
the nnul finncilsttements be
submitted to theSuperintendenc.Additionll, some
chnes to theblws require prioruthorition from
this entit.
USD 9,825,000).39Government controlis exercised overfinncil spectsnd requires tht
the nnul finncilsttements be
submitted to theSuperintendenc.Additionll, some
chnes to theblws require prioruthorition from
this entit.
Government controlis exercised overfinncil spectsnd requires tht
the nnul finncilsttements be
submitted to theSuperintendenc.Additionll, some
chnes to theblws require prioruthorition from
this entit.
9,825,000, (ii) whenit is within processof reornition orrestructurin nd
(iii) if the min officewhich estblished th
brnch is under contrsitution or is prt
of corporte roupreistered in Colombi
LIMITED LIABILITYCOMPANY
SIMPLIFIED STOCKCOMPANY
FOREIGN COMPANYBRANCH
CORPORATION
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3. Corporte reultions
REGULATORY FRAMEWORK
SUBJECTNORM
Generl nd specific reultion on corportions ndforein compn brnch.
Amends the Code of Commerce in mtters pertininto corportions nd reultes spects such s spin-offs, corporte roups, duties of mners, preferred
stocks with dividends nd without votin rihts, mjoritrequired for the stock corportion nd one-person
business.
Whereb the possibilit nd the requirements toset up n entrepreneuril compn, b mens of
privte document is estblished.
The simplified stock compn (S.A.S.) is creted nd thepplicble norm for this kind of corportion is set forth.
Forein Investment.
Whereb provisions for the elimintion nd reform ofprocedures in the public dministrtion re set forth.
Whereb the provision for enerl uthorition ofmerers nd spin-offs re set forth.
Lw on Formlition of Emploment nd Job Cretion
Whereb reultion in tx mttersre set forth.
Code of Commerce
Lw 222 of 1995
Lw 1014 of 2006
Lw 1258 of2008
Reultor CirculrDCIN 83 issued b the
Colombin Centrl Bnk
Decree 19 of2012
Externl Circulr 001 of 2007of the Superintendenc of
Compnies
Lw 1429 of 2010
Lw 1607 of 2012
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