Colombia
Key entity, tax, banking, visa, and compliance guidance for foreign founders incorporating in Colombia.
Foreign Ownership Eligibility
Colombia welcomes 100% foreign-owned companies
Fully remote formation — you never need to set foot in the country.
- Foreign founders can establish local entities or operate via branch/PE
- General corporate tax rate baseline is 35%
- VAT standard rate is 19% with reduced categories
- DIAN registration and RUT setup are core onboarding requirements
Ownership
100% Foreign OK
Formation
100% Remote
Note
Immigration detail verification is required directly with official channels for publication-grade residency specifics.
Tax at a glance
Colombia Tax Overview
35%
Corporate income tax
PwC Colombia corporate taxes
19% standard with 5% and 0% categories
VAT
PwC Colombia other taxes
Bimonthly or every four months by revenue profile
VAT cadence
PwC Colombia other taxes
Municipal industry and commerce tax applies
Local business tax
PwC Colombia summaries
Pros & cons
Advantages & Considerations
Key Advantages
Large regional market and strategic location
Established DIAN digital tax infrastructure
Flexible structure choices for local entity or branch operations
Considerations
35% corporate tax baseline is material for planning
Municipal tax overlays increase compliance workload
Residency-path details require careful live verification
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Select legal-presence model
Register commercial presence
Activate DIAN profile
Set VAT filing frequency
Implement payroll and municipal filings
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Colombia setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? YES.
Banking options for non-resident founders in Colombia. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| Bancolombia | Traditional bank | Low (Visit Required) | Compliance and KYC dependent • Institution dependent • Institution dependent • Corporate registry data, DIAN records, UBO information, business purpose |
| Davivienda | Traditional bank | Low (Visit Required) | Compliance and KYC dependent • Institution dependent • Institution dependent • Corporate registry data, DIAN records, UBO information, business purpose |
| BBVA Colombia | Traditional bank | Low (Visit Required) | Compliance and KYC dependent • Institution dependent • Institution dependent • Corporate registry data, DIAN records, UBO information, business purpose |
| Banco de Bogota | Traditional bank | Low (Visit Required) | Compliance and KYC dependent • Institution dependent • Institution dependent • Corporate registry data, DIAN records, UBO information, business purpose |
| Digital and fintech options vary by risk profile | Fintech | High (Remote) | Compliance and KYC dependent • Institution dependent • Institution dependent • Corporate registry data, DIAN records, UBO information, business purpose |
Regulatory requirements
Annual Compliance Matrix
| Requirement | Deadline | Details |
|---|---|---|
Annual corporate tax filing | Ongoing | Maintain annual income-tax reporting under entity rules. |
Periodic VAT filing | Ongoing | File VAT according to assigned periodicity based on annual revenue profile. |
Payroll and social obligations | Ongoing | Apply mandatory payroll deductions and employer remittances. |
Municipal tax obligations | Ongoing | Track local industry-and-commerce compliance by city footprint. |
Frequently Asked
Speak with a Colombia specialist
Get personalised guidance on entity types, costs, timelines and banking — free, no commitment needed.