Over the last few years, the Harris Gomez Group has seen an increasing amount of interest in Colombia. Colombia represents countless opportunities for those willing to invest; from resource-based industries to infrastructure projects and beyond.
Colombia has a population of 46 million, giving it the third largest population and the fourth largest economy in Latin America. It is the only country in South America with access to two coasts: the Pacific and Caribbean, this provides tactical shipping advantages for the importation and exportation of goods. With major improvements in security, steady economic growth and moderate inflation, Colombia has become a free market economy with major commercial and investment ties to the rest of the world.
In order to take full advantage of Colombia, we recommend taking a longer-term view of the region. Similar to other Latin American countries, Colombian businesses prefer partners who have a local presence. This ensures Colombians that your business will be able to provide the after sales support and assistance needed.
Setting up a business in Colombia does not need to be an expensive undertaking and is not difficult. Choosing the right partner is the key to ensuring your set up is both stress-free and cost effective. The right partner will help you navigate the legal system, the tax system and provide advice on the right corporate structure.
Choosing the right structure is important because it has legal and tax implications for the future. Your company may have a tight budget but choosing a certain structure because it is cheaper to set up can have negative implications. This is not the time to save a few thousand dollars. Implementing the correct business structure will save your company time and money in the long term.
Proexport Colombia provides a legal guide and a chart outlining the characteristics of the most commonly used business structures. The chart, see below, provides companies with a better understanding of the differences in each potential structure.
The Harris Gomez Group, has over 19 years experience in South America and Australia, and is proud to continue to provide our clients with commercial, tax and legal advise from both an Australian and local perspective. Our aim is to make your business in the region as seamless and straightforward as possible.