[ESTABLISHING A BUSINESS ENTITY IN COLOMBIA] 124
financial the Superintendence of Industry and Commerce. 8. Conclusions and Recommendations: penalties imposed by In order to determine which mechanism is the best for establishing business in Colombia, the first consideration that shall be made is if the activities that will be executed are permanent or not. If they are, the foreign company should
evaluate whether a branch or a subsidiary best suits the company’s purposes and structure. The most common entities for commercial purposes are the Simplified Shareholding Company (S.A.S). This entity has a clear division between capital and responsibility, limiting, as a general rule, the liability of the investor to the amount of its participation.
*** This memorandum is for information purposes only and reflects the existing regulations as of July 2025. Under no circumstances can it be considered as either a legal opinion or advice on how to proceed in particular cases or on how to assess them. If you need any further information on the issues covered by this memorandum, please contact Mr. Daniel García Piñeros (dgarcia@gclegal.co) or Juan Ignacio Gamboa (jigamboa@gclegal.co)
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