If you’re looking to set up a business in Colombia as an expat, it’s always best practice to know where potential pitfalls for new companies lie.

At Expat Group, we’re always being asked by our clients and partners about which barriers are most telling for foreign nationals who look to start a Colombian enterprise, and top tips for overcoming these obstacles.

For this reason, we’ve picked out our five most notable challenges for doing business in Colombia as an expat.

Let’s get started.

Before setting up your Colombian business as a foreign investor, it’s crucial to understand all of the legal requirements.

At Expat Group, our clients are constantly asking us about the best way to legally structure their business, how to navigate DIAN for their tax number and dealing with the Colombian Chamber of Commerce.

With this in mind, we’ve put together a comprehensive list of the most important steps you need to take legally to incorporate your Colombian business.

You’ll learn about:

The letter stating POA
The different legal structures for Colombian businesses
What you need for the Chamber of Commerce
How to get your Colombian tax number (NIT)

At Expat Group, many people ask us what makes Colombia such an ideal environment to do business.

It’s clear that Colombia is a country that’s filled with economic opportunity, showing high levels of economic growth that is contributing to a rising middle class.

But why, specifically, should people look to do business in Colombia over other Latin American countries?

In this article, we’re taking a look at three key factors to explain.

Let’s start by looking at Colombia’s economic overview.
At Expat Group, many people ask us what makes Colombia such an ideal environment to do business.

It’s clear that Colombia is a country that’s filled with economic opportunity, showing high levels of economic growth that is contributing to a rising middle class.

But why, specifically, should people look to do business in Colombia over other Latin American countries?

In this article, we’re taking a look at three key factors to explain.

Let’s start by looking at Colombia’s economic overview.

In 2019, Colombia’s real GDP increased by 32% from 2.5% to 3.3%, the second highest growth rate of any South American country over the same one-year period.

Statistics like these — despite being in a period of worldwide economic uncertainty — show that Colombia’s economy is a global leading light for prosperity and growth. As well as this, notable improvements to Colombia’s banking, travel and commerce sectors have made it an increasingly attractive investment proposition for foreign entities.

In fact, the level of total foreign direct investment (FDI) in Colombia grew by $3.5billion USD over the same period. This increase in FDI is understandable when considering Colombia’s tech startup success stories of the recent past.

Food delivery platform Rappi, for instance, became Colombia’s first tech unicorn (startups valued in excess of $1 billion USD) within three years of its creation. Meanwhile, fintech startup OmniBnk has become Colombia’s first online bank that lends specifically to Latin American SMEs (small-to-medium enterprises).

It’s clear, therefore, that the question isn’t: ‘should you invest in a business in Colombia’ but rather ‘how?’.

To help answer the above, we’ve broken down the best practices for doing business in Colombia in this comprehensive guide.

When you look at the statistics, it’s unsurprising to hear that Colombia is fast becoming one of South America’s most popular places for foreign investment.

According to the 2020 World Investment Report, Colombia received $14.5 billion in foriegn direct investment (FDI) in 2019, representing a more than 25% increase from the previous year.

With continuous improvements to urban infrastructure, technology and language proficiency, more and more expats are looking at Colombia as the place to start a business.

For this reason, we’ve picked out the five best industries for foreign nationals to invest in, and why they hold such lucrative business opportunities.

Let’s begin with the biggest up-and-coming industry in Colombia.