DOING BUSINESS IN COLOMBIA -

1. Preliminary Considerations:

In Colombia, a foreign company is able to act and do business by itself, for example, by contracting with local entities or investing foreign currencies. Entering contracts, such as joint ventures, with local corporations or persons, depends on commercial negotiations, more than on legal requirements. Foreign investment, on the other hand, is subject to different regulations and the Central Bank supervises the activities (more information below).

However,when a foreign company, not only has investments in Colombia, but also desires to perform “Permanent Activities” in its territory, legal provisions require it to establish a branch or a subsidiary in Colombia (Article 471 of the Commercial Code). Colombian legal provisions do not provide general criteria for what should be understood as “Permanent Activities”, however article 474 of the Commercial Code contemplates a list of activities that are considered as permanent, which are...