How to Start a Business in Colombia as a Foreigner (SAS Guide)

I know at least a dozen expats in Medellín who've started businesses here — restaurants, consulting firms, real estate agencies, e-commerce stores. Every one of them said the same thing: the process was easier than they expected, but figuring out what to do was the hard part. Nobody had a clear guide.

Here's that guide. How to set up a business in Colombia as a foreigner, step by step, with actual costs and timelines.

The SAS: Colombia's LLC Equivalent

The SAS (Sociedad por Acciones Simplificada) is the business structure you want. It's Colombia's version of an LLC — flexible, simple, and by far the most popular choice for foreigners. Key features:

• No minimum capital required — you can start with less than COP 1,000,000 ($270)
• Capital contribution can be delayed up to 2 years after registration
• Single or multiple shareholders — you can be the sole owner
• Limited liability — your personal assets are protected
• Simplified bylaws — less bureaucracy than traditional corporations (S.A.)
• Foreign shareholders allowed — no local partner required

About 80% of new companies in Colombia are registered as SAS. There's a reason — it's the easiest and cheapest structure to set up and maintain.

Step-by-Step Registration

1. Check name availability: Search the RUES registry (rues.org.co) to make sure your business name isn't taken.
2. Draft articles of incorporation: The escritura de constitución outlines your company's purpose, structure, and rules. A lawyer can draft this for COP 500,000-1,500,000 ($135-$400).
3. Power of attorney (if needed): If you can't be physically present, you'll need a notarized and apostilled power of attorney so a representative can sign on your behalf.
4. Register with Cámara de Comercio: Submit your bylaws, shareholder IDs, and proof of address. Registration fee: starting at COP 380,000 (~$103) plus 0.7-1% of declared capital.
5. Get your NIT (tax ID): Register with DIAN to receive your business tax number. Takes ~1 business day.
6. Register foreign investment: If you're the majority shareholder, declare your investment to the Colombian Central Bank through SIRE.
7. Open a business bank account: Bring your Existence Certificate (from Cámara de Comercio), NIT certificate, legal representative ID, and opening balance sheet. Takes 10-15 business days.

Total Timeline and Costs

Timeline: 2-4 weeks from start to fully operational, including bank account. If you hire a lawyer who specializes in company formation, they can handle everything and you just sign documents.

Can You Start a Business on a Tourist Visa?

Technically no. A tourist visa doesn't authorize work or business activities in Colombia. However, you CAN register a company — you just can't legally operate it while on a tourist visa.

The practical path: register the SAS, then use it to apply for a business visa (Type M). The SAS registration demonstrates business legitimacy and is often a requirement for the visa application. Many expats register the company first, then transition from tourist/digital nomad visa to a business visa.

Ongoing Compliance

• Annual Cámara de Comercio renewal: COP 200,000-500,000 ($54-$135) depending on declared assets
• Monthly bookkeeping: COP 300,000-800,000 ($81-$216) for a local accountant. Required even if revenue is zero.
• Tax filing: Annual corporate tax return (August-October). VAT returns monthly or bimonthly if you charge IVA.
• Social security: If you hire employees, you must cover health, pension, ARL (workplace risk), and parafiscal contributions — roughly 40-50% on top of salary.

Common Businesses Foreigners Start

• Consulting/freelancing: Use the SAS to invoice Colombian and international clients
• Real estate management: Managing short-term rentals for other foreign property owners
• E-commerce: Importing goods or selling online
• Restaurants/cafés: Popular in El Poblado and Laureles (saturated market — do your research)
• Tourism: Tours, experiences, travel agencies
• Tech/software: Development shops, SaaS products

If you're hiring, check our job board at trabajo.colombiamove.com — post job listings for free and reach both Colombian and international candidates.

The Business Visa Angle

A registered SAS with demonstrated activity can support your application for a Type M business visa. The financial threshold for 2026: your company needs to show investment of 100x the minimum wage (COP 175,090,500 / ~$47,300 USD) OR employ at least 10 Colombian workers. The investment threshold is the more common path for small businesses.

Preguntas Frecuentes

❓ Do I need a Colombian partner to start a business?

No. Foreigners can be 100% sole owners of a SAS. No local partner, no nationality requirements, no government approval beyond standard registration. Your passport is sufficient ID for the process.

❓ How much does it cost to maintain a SAS annually?

Budget COP 4,000,000-8,000,000 ($1,080-$2,160) per year for Cámara de Comercio renewal + monthly accounting + tax filing. This is the baseline even if revenue is zero. If you have employees, add their social security contributions (40-50% on top of salary).

❓ Can I hire foreigners for my Colombian company?

Yes, but with restrictions. Colombian labor law limits foreign employees to 10% of specialized staff and 20% of general staff. Each foreign employee needs their own work visa. Most small businesses hire Colombians and contract foreigners as independent consultants.

❓ What's the corporate tax rate?

35% on net income for 2026. This is the flat rate for all companies (SAS, S.A., etc.). Deductible expenses reduce your taxable base significantly — good bookkeeping matters.

❓ Should I start a SAS or just freelance on a digital nomad visa?

Depends on your situation. If you only work for foreign clients and don't need to invoice in Colombia, the digital nomad visa is simpler. If you want to invoice Colombian clients, hire employees, buy property through a company, or transition to a business visa — you need the SAS.