Guide to perform procedures after setting up a company in Colombia

Setting up a company in Colombia is a significant first step for any entrepreneur. However, merely completing the legal procedures to establish a company is not the final stage. To ensure your business operates lawfully and efficiently, there are crucial post-establishment procedures that must be carried out. This comprehensive guide from Viet An Law is designed to walk clients through these essential steps. We will detail the necessary registrations, administrative requirements, and compliance actions required after your company is formally incorporated, helping you transition smoothly from legal formation to active operation in the Colombian market.

Guide to perform tax registration procedures after setting up a company in Colombia

One of the post-establishment procedures is the registration of taxes with the Dirección de Impuestos y Aduanas Nacionales (DIAN) – the General Directorate of National Taxes and Customs to be issued a Tax Identification Number (NIT – Número de Identificación Tributaria). To complete the tax registration process and receive NIT in Colombia, businesses need to follow these detailed steps:

Preparation of registration documents

• A copy of the business registration certificate;
• A copy of the identity document of the legal representative;
• Contact Information: Include the business’s official phone number and email address;

Register online

Currently, DIAN has implemented an online tax registration system, so most of the NIT registration procedures are carried out through the agency’s official online platform, which can be accessed at www.dian.gov.co.

• Visit DIAN’s Portal
• Search for NIT Registration
• Complete the Online Form: Fill in all the information required in the online application form completely and accurately. This information includes details about the business, representative information, address, and other relevant information as instructed.
• Upload the documents prepared above

Complete registration and receive a tax identification number (NIT)

• Submit the application online: After completing the filling in and uploading the documents, you will proceed to submit the application through DIAN’s online system.
• Confirmation and issuance of NIT: If the information and documents provided are complete and accurate, DIAN’s system will process the application and issue a Tax Identification Number (NIT) to your business.

Next steps after having NIT

• Registering E-invoices: According to current regulations, most businesses in Colombia are required to use an e-invoice system. Therefore, businesses need to carry out the procedures for registering and activating the e-invoice system with DIAN.
• Compliance with periodic tax obligations: After having a NIT, enterprises must start fulfilling their tax obligations as prescribed, including:
  • Declaration and payment of Corporate Income Tax;
  • Declaration and payment of VAT;
  • Perform other tax reporting obligations as prescribed by law.

Guide to perform for obtaining a Local License after setting up a company in Colombia

The types of local permits that are commonly required include:

Operating License

This license is official permission from the local government for businesses to be allowed to conduct business activities in a specific location.

Application: Businesses need to submit an application for an operating license to the competent authority. This application includes details about the business, the location of the headquarters or operation, the type of business expected, and other relevant information.

Submit accompanying documents: The application for a license usually includes the following documents:

• A copy of the Business Registration Certificate;
• A copy of the identity document of the legal representative of the enterprise.
• Documents proving the right to use the business premises (e.g., lease agreement, certificate of ownership).
• Detailed floor drawings of the business location (in some cases may be required).
• Other papers depend on the specifics of the industry and local regulations.

Inspection and appraisal: Authorities may conduct physical inspections of business premises to ensure that the expected activities comply with local safety, urban planning, and other standards.

Approval and licensing: If the requirements are met, an operating license will be issued.

Planning approval

This is to ensure that the business activities of the enterprise are in accordance with the regulations on urban planning and land use of the area where the enterprise is located.

• Application: The enterprise submits an application for planning approval with detailed information about the type of business and location of operation.
• Planning inspection: The authorities will check whether the business activities are in accordance with the current regulations on land use planning in that area.
• Approval: If appropriate, the enterprise will be issued a planning approval certificate.

Medical License

It is especially important for businesses operating in sectors directly related to public health, such as restaurants, food service, food processing, medical facilities, etc. This license is intended to ensure that business activities strictly comply with standards for food hygiene and safety, health safety and other local health regulations.

• Application: The enterprise applies for a medical license.
• Facility inspection: The health authority will conduct a comprehensive inspection of facilities, operating procedures, measures to ensure food hygiene and safety, and factors related to public health.
• Licensing: If all standards and regulations are met, a medical license will be issued.

Other Specific Licenses

Depending on the specific line of business, there may be requirements for other specific types of licenses from local authorities or specialized regulatory bodies (e.g., advertising licenses, audio activity licenses, etc.).

Guide to perform for registering an employer procedures after setting up a company in Colombia

After completing the business registration procedures and obtaining the necessary operating licenses, one of the next important steps for businesses in Colombia that plan to recruit employees is to carry out registration with labor and social security authorities. This not only ensures compliance with labor laws and regulations but also helps businesses properly fulfill their obligations to employees, including insurance and social welfare regimes. The main employer registration procedures include:

Register with Social Security Agencies

• Health Insurance: It is the responsibility of the business to enroll its employees in one of the health insurance service providers authorized to operate in Colombia.
• Pension funds: Enterprises must register employees in pension funds in accordance with the law.
• Labor Damage Compensation System: Enterprises need to register with an occupational risk management organization to ensure the benefits of employees in the event of an occupational accident or occupational disease.

Register with Labour Agencies

• Ministry of Labor: Depending on the size and type of operation, businesses may need to carry out certain registration procedures or notify the Ministry of Labor. Specific regulations may relate to the registration of employment contracts, employment announcements, or occupational safety requirements.
• Other organizations (if any): Depending on the industry and collective labor agreements (if any), businesses may need to register with other organizations or agencies related to labor management.