Business Reforms in Colombia
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Starting a Business: Colombia made starting a business easier by streamlining registration procedures.
Paying Taxes: Colombia made paying taxes less costly for companies by reducing the payroll tax rate and introducing exemptions for health care contributions paid by employers.
Registering Property: Colombia made transferring property easier by eliminating the need for a provisional registration.
Getting Credit: Colombia improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a centralized, notice-based collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral, establishes clear priority rules inside bankruptcy for secured creditors, sets out grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures and allows out-of-court enforcement of collateral.
Paying Taxes: Colombia made paying taxes more complicated for companies by introducing a new profit tax (CREE), though it also reduced the corporate income tax rate and payroll taxes.
Getting Electricity: Colombia made getting electricity easier by opening a one-stop shop for electricity connections and improving the efficiency of the utility’s internal processes.
Enforcing Contracts: Colombia made enforcing contracts easier by simplifying and speeding up the proceedings for commercial disputes.
Starting a Business: Colombia made starting a business easier by eliminating the requirement to purchase and register accounting books at the time of incorporation.
Starting a Business: Colombia reduced the costs associated with starting a business, by no longer requiring upfront payment of the commercial license fee.
Paying Taxes: Colombia eased the administrative burden of paying taxes for firms by establishing mandatory electronic filing and payment for some of the major taxes.
Resolving Insolvency: Colombia amended regulations governing insolvency proceedings to simplify the proceedings and reduce their time and cost
Starting a Business: Colombia eased the process of Starting a Business by reducing the number of days to register with the Social Security System.
Dealing with Construction Permits: Colombia eased construction permitting by improving the electronic verification of prebuilding certificates.
Starting a Business: Colombia made starting a business easier by establishing a new public-private health provider (Nueva EPS) that enables faster enrollment of employees and by introducing online preenrollment with the Social Security Institute (Instituto de Seguro Social).
Dealing with Construction Permits: Colombia made dealing with construction permits easier by introducing regulations that categorize building projects on the basis of risk and allow electronic verification for certain documents.
Registering Property: Colombia made transferring property easier by making certificates required for the process available online and providing a standard preliminary sale agreement free of charge, online and in notary offices.
Getting Credit: Colombia improved access to credit information by guaranteeing borrowers’ right to inspect their own data and by making it mandatory for credit providers to consult and share information with credit bureaus.
Protecting Minority Investors: Colombia strengthened investor protections by making it easier to sue directors when a related-party transaction harms the company.
Paying Taxes: Colombia made paying taxes easier and less costly for companies by introducing electronic filing and payment and reducing some payments.
Trading across Borders: Colombia speeded up the customs clearance process by implementing the electronic data interchange system MUISCA.
Resolving Insolvency: Colombia enhanced its insolvency process through several decrees regulating the profession of insolvency administrators.
Starting a Business: Colombia reduced the time, cost and number of procedures to start a business by introducing online company registration and simplifying other registration formalities.
Dealing with Construction Permits: Colombia made dealing with construction permits easier by fully adopting the “silence is consent” rule and by introducing a new unified application form for building permits.
Paying Taxes: Colombia made paying taxes easier for companies by integrating and unifying electronic forms for tax payments and making electronic payment mandatory for companies with more than 30 employees.
Trading across Borders: Colombia reduced the time for exporting and importing through the implementation of risk management procedures, electronic data interchange and electronic payment of customs duties and through improvements in the banking sector.
Resolving Insolvency: Colombia improved its insolvency process by introducing 2 new proceedings—a reorganization procedure to restructure insolvent companies and a mandatory liquidation procedure—and tightening the time limits for negotiating reorganization agreements.
Protecting Minority Investors: Colombia strengthened investor protections by increasing disclosure requirements for related-party transactions in the annual report.
Paying Taxes: Colombia made paying taxes easier for companies through the diffusion of electronic facilities—though it also increased employers’ social security contribution rate.
Trading across Borders: Colombia made trading across borders easier by extending operating hours for customs and the port in Cartagena.