March 21, 2023
The branch of a foreign company in Colombia refers to businesses or companies domiciled and created abroad, which upon their incorporation and compliance with all requirements in Colombia, may exercise their permanent economic activities. Hence, they are subject to Colombian regulations and laws, as well as its Code of Commerce, judges and courts.
A branch of a foreign company is a commercial establishment opened in Colombia by a foreign company domiciled abroad. The Colombian Code of Commerce establishes the regulatory provisions on branches of foreign companies in the national territory, from article 469 onwards.
If your business is successful in your country, and you wish to establish a branch in Colombia, this article will provide you with the necessary information to do so safely. We will address the requirements needed, legal recommendations and other relevant information for you to expand your business to other territories.
In order to initiate the process of establishing a branch of a foreign company, a resolution or act must be executed in which it is agreed to establish permanent activities in Colombia. The aforementioned document must contain and describe the following information:
It is important to note that foreign companies wishing to undertake permanent business in Colombia must necessarily establish a foreign branch in the country.
Therefore, at the time of understanding the nature of permanent activities, the meaning of this concept must be thoroughly contemplated, since not every activity that initially appears to be permanent, is permanent. Accordingly, the activity that the branch wants to develop must be thoroughly analyzed to determine whether it meets the essential requirements of the notion of permanence.
According to Art. 474 of the Colombia's Commercial Code, the so-called permanent activities are:
Additionally, it is essential to bear in mind that when a foreign company can undertake permanent business in Colombia, it will be required to notarize these documents in a notary's office of the chosen domicile:
Authentic copies of the document of its foundation, copies of its bylaws, the resolution or act that agreed the establishment, and the documents that prove the existence of the company and the legal capacity of its representatives.
At AGT Attorneys, our specialized lawyers in Commercial Law and Corporate Governance will help you determine whether your business model and the commercial activities you wish to undertake in Colombia are permanent activities.
In that sense, we will provide you with high quality advice to establish and incorporate a branch of your foreign company in Colombia, complying with all the legal requirements and pertinent legal documentation. We are committed to your business.
To continue with the incorporation of the branch, the following legal documents are required to incorporate the company in Colombia:
With the correct compliance of each of the stages, the incorporation of a foreign branch in Colombia will be successful. In order to obtain a more clear understanding of the procedures required to incorporate a branch, you can seek for legal advice from specialized lawyers. Personalized advice from experienced attorneys on Incorporation Law in Colombia, will be key on the establishment of a branch in the country.
It is important to highlight that, the representation of a lawyer allows you to carry out some stages of the incorporation, that if done without a lawyer, would require you or someone from your company to be physically in Colombia.
Our commercial lawyers in Bogotá will provide you with specialized legal advice to incorporate your foreign company branch, complying with all the legal requirements set forth in the Colombian commercial regulations. Likewise, we will take care of any other necessary procedure for the beginning of commercial activities, such as, the opening of a bank account for a foreign company in Colombia.
In this way, you will be able to start your commercial activities in the country efficiently and safely.
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