Starting a Company in Colombia and Trademark Registration

March 25, 2023

Starting a company in Colombia is a legal procedure that you can make if you want to enter the Colombian market. It is an exciting prospect for companies who are searching to expand their business and commercial operations. However, setting up and taking advantage of a business model comes with its own unique challenges. Without proper planning, due diligence and legal assistance, your venture could face potential obstacles.

Additionally, trademark registration is crucial when enterprises own intellectual property assets, as it can provide your company from counterfeiting and other infringements on your rights.

If you want to start a company or make a trademark registration for your products or services, it is essential to have adequate legal advice from expert attorneys in the Colombian legal system. Each business has its own legal requirements when starting commercial activities in a new country like Colombia.

At AGT Attorneys, we have years of experience advising foreign companies who plan to enter the Colombian market, whether it's in the establishment of branches or the trademark registration process. Our lawyers will be great allies for your business plans here in Colombia! Do not hesitate to contact us at +57 3105706331.

Benefits of Starting a Company in Colombia

Foreign companies looking to start a business in Colombia can benefit from the country's free-market economy, improved safety, tax incentives, access to talent and resources. Here are some of the top benefits of doing business in Colombia:

Cost-effective:

Colombia offers a lower cost of living and labor costs compared to many other countries of the region, this can result in a significant increase in the cost savings for foreign companies.

Skilled workforce:

The country has a highly educated and skilled workforce, with a large pool of professionals in various fields, including technology and finance.

Strategic location:

Apart from having direct control over the company operations and employees, your business will be able to build relationships with local partners and costumers. It presents numerous opportunities for foreign investors and business seeking to expand their operations.

Investments:

Holding fixed assets is possible with a legal entity.

If you want to learn more about the types of companies that exist in Colombia, or how to establish your already formed company in the country, we invite you to visit our legal article: How to incorporate a company in Colombia? - All you need to know

Requirements to Incorporate a Company in Colombia

When you are wishing to establish a foreign company in Colombia, a great option offered by our legal system is the incorporation of a branch. This will be a commercial establishment form that allows businesses domiciled abroad to exercise economic activities in the country.

In order to initiate this process, the following legal documents are required:

• Company Incorporation document of the foreign business.
• Certificate of existence and legal representation, which certifies the existence of the foreign company, corporate bodies and powers of its legal representatives.
• Resolution issued by the competent entity where the opening of the branch in Colombia is approved, including, name, activities, assigned capital, address, duration, powers of the representatives and fiscal auditor.
• Single Business Registration Form.
• Registration form in the Single Tax Registry.

Process of Starting a Company in Colombia

For the process of starting a company, you and your law firm will have to:

1. Establishment of company's foundation by checking the name availability and definition of bylaws.
2. When a new business is being created, it is important to bear in mind that Colombia has several legal structures for creating a company. A simplified stock company or S.A.S. is the easiest business structure in Colombia created for entrepreneurs and foreign investors.
3. Constitute the incorporation process through a public deed or through a private document in the chamber of commerce located in the city where the company will have its principal domicile.
4. Obtain your company's tax identification number, this will be presented and carried out before the Direction of National Taxes and Customs (DIAN). This step includes the process to receive the so called "Pre-RUT" and the final RUT.
5. Opening a bank account in the financial institution selected by the company of its representatives.
6. Proceed with the registration of the company's books in the Chamber of Commerce.
7. Registering the foreign investment at the Bank of the Republic, if necessary.

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. Contact us at +57 3105706331 or fill out the next Contact Form.

Benefits of Trademark Registration in Colombia

A trademark registration is a powerful tool for entrepreneurs and business owners who want to secure their brand in the marketplace. Trademarks are used to distinguish businesses, products, and services from their competitors, allowing customers to quickly identify them. Having a registered trademark can provide numerous benefits, ranging from better marketing opportunities to improved legal protection.

The benefits of the trademark registration in Colombia are:



• Trademark registrations allow companies to have a standout element in comparison to other businesses.
• A registered trademark may build trust with clients and generate remembrance.
• Some trademarks are even more valuable than all tangible of a company.
• It generates the exclusive right to prevent third parties who sell products and offer identical or similar services with identical or similar trademarks.
• Enhanced credibility and recognition in the marketplace.
• Ability to license or assign the mark to another party.
• Easier enforcement of rights against infringers.

Read more about: Trademark Protection in LATAM.

Requirements of Trademark Registration in Colombia

The legal requirements of the trademark registration in Colombia are:

• Fill out the trademark application for registry with the respective NICE classification of your product or service.
• 8cm x 8cm art of your brand (This applies if your distinctive sign is three-dimensional, figurative or mixed).
• Payment receipt.
• Carry out a study of the brand history.
• If your procedure is being carried out by a law firm, a power of attorney must be presented.
• Follow up on the trademark registration process, since other procedures could take place like corrections on the application and oppositions.

Do you need a Trademark Lawyer or Company Incorporation Lawyers in Colombia?

As a foreign investor that need to start your company in Colombia, it is advisable for you to get help from experienced business and corporate law attorneys in Colombia, contact us at: +57 3105706331. At AGT Attorneys, we take pride in offering you the most qualified attorneys with wide experience in foreign investment in the country.

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