Starting a business in Bogotá in 2026: process, costs and taxes
Foreign direct investment into Colombia has stabilized in early 2026 after several volatile regional cycles.
Bogotá remains the country’s economic command center. The capital hosts the main regulators, the national tax authority (DIAN),
arbitration institutions, and the largest domestic and international banks.
Incorporation is administratively efficient, but not informal. Corporate income tax stands at 35%.
Banking due diligence for non-resident shareholders is rigorous.
Reporting standards increasingly reflect global transparency requirements.
Damalion facilitates structuring and incorporation procedures to ensure legal consistency and tax alignment from the outset.
Incorporation usually takes 2–3 weeks. The Sociedad por Acciones Simplificada (SAS) is the most commonly used structure. Corporate income tax is 35%. Banking onboarding requires full KYC documentation.
Company forms used in practice
The legal structure determines shareholder liability, governance flexibility, dividend distribution mechanics,
and reporting obligations.
The most widely used vehicle is the Sociedad por Acciones Simplificada (SAS).
It permits a single shareholder, whether an individual or a corporate entity.
In practice, subscribed capital is often below COP 1 million.
Bylaws can be tailored, and electronic filing reduces formalities.
The Limited Liability Company (Ltda) is typically used for closely held businesses with a stable ownership structure.
The Corporation (SA) is more common in larger enterprises or regulated sectors where governance formalities are stricter.
Structural comparison
| Entity | Minimum Shareholders | Capital Practice | Governance | Typical Use |
|---|---|---|---|---|
| SAS | 1 | Often < COP 1 million | Flexible | Subsidiaries, SPVs, holding companies |
| Ltda | Commonly 2+ | No strict statutory minimum | Moderate | Closely held operating companies |
| SA | Multiple | Flexible | More formal | Larger or regulated activities |
Registration process and timeline
Incorporation involves coordination between the Chamber of Commerce and the national tax authority (DIAN).
When documentation is properly prepared, the sequence is procedural rather than complex.
- Name reservation: Conducted online, usually completed within 24 hours.
- Drafting bylaws: Clear definition of corporate purpose, capital structure, and legal representation.
- Chamber registration: Minimum fee approximately COP 380,000 (around USD 95 as of early 2026).
- NIT issuance: Tax identification number delivered within 2–5 business days.
- Bank account opening: Requires incorporation certificate, NIT, and full KYC documentation. Activation often takes 10–15 business days.
For most non-regulated sectors, the full timeline for business registrationis approximately two to three weeks.
Activities in finance, energy, or hospitality may require additional permits.
Costs and capital requirements
Entry costs are moderate compared with other regional capitals, though ongoing compliance must be budgeted carefully.
- Chamber of Commerce fee: COP 380,000 minimum
- Registration tax: 0.7% of subscribed capital
- Notary/legalization fees: typically COP 250,000–400,000
- Initial bank deposit: commonly COP 1–2 million depending on institution
Annual accounting and compliance expenses generally range between COP 6–10 million.
Corporate income tax remains at 35%, and municipal industry and commerce taxes may apply depending on activity.
Cross-border dividend distributions should be reviewed in light of applicable double taxation treaties.
Regulatory developments in 2026
Current legislative discussions include potential adjustments to VAT refund procedures for exporters and reinforced transfer pricing enforcement.
Beneficial ownership reporting requirements continue to strengthen.
For foreign-controlled entities, consistency between corporate records, tax filings, and banking disclosures is essential.
Operational considerations
Incorporation is only the first step. Operational readiness requires compliance with several additional requirements.
- Registered address: Mandatory at incorporation.
- Immigration status: Foreign legal representatives may require a Migrant (M) visa.
- Sector licensing: Hospitality, energy, and financial services require additional approvals.
- Digital filings: Many procedures now accept digital signatures.
Damalion supports investors, entrepreneurs, and family offices establishing and structuring their business in Colombia. Contact your Damalion experts now.
FAQ
How long does incorporation take?
Typically 2–3 weeks for non-regulated sectors.
Can a foreigner be the sole shareholder of an SAS?
Yes.
What is the corporate income tax rate?
35%.
Is a local address required?
Yes.
