Colombia

Starting a Business in

Tunja - Colombia

Below is a detailed summary of the bureaucratic and legal hurdles an entrepreneur must overcome in order to incorporate and register a new firm, along with their associated time and set-up costs. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

The information appearing on this page was collected as part of the Doing Business subnational project in Colombia. Download this Doing Business report or explore other cities and topics.

No. Procedure Time to Complete Associated Costs
1 Purchase the company’s books

The company’s books can be purchased from a retail store or from the Chamber of Commerce.
Limited liability company shall use the following six books:
1. Inventory and Balance Book: An inventory and general balance sheet must be made at the start of activities and at least once a year to have a clear and complete picture of the assets
2. Main Ledger: All transactions are entered in this book using the double entry system, that allows a company to summarize on a monthly basis all its transactions
3. Cash book - daily: Accounting transactions in chronological order are entered in this book, individually or summarized, for a maximum of one month
4. Minutes Book: It could be of two types: Minutes book of shareholders’ meetings and minutes’ book of the Board of Directors. The first must be kept by all companies, the second only by those companies that have a board of directors. The minutes of the meetings must be recorded in chronological order, and signed by persons designated as secretary and president of the meetings
Once the company or firm is registered, its owner or legal representative should submit and request the registration of the company’s books by means of a letter addressed to the Chamber of Commerce and fill out an application form. The first page of each book or sheet should be submitted labeled (marked) in pencil at the top with the name of the company and the intended use to be given to each book; they must also be numbered consecutively and contain no accounting records.
1 day COP 14,000 [4 books (COP 3,500 per book, COP 35 per page, 100 pages per book)]
* 2 Payment of departmental registration tax

The tax is paid at the bank Banco Agrario. It is necessary to present the certificate of existence and legal representation.
1 day COP 734,610 [COP 718,010: departmental registration tax (0.7% of the initial capital of the company); COP 16,600 for systematization service]
3 Obtain the provisional Unified Tax Registration (pre-RUT) from DIAN

Before registering the company before the Chamber of Commerce, the company's legal representative must personally request from the DIAN the pre-RUT, presenting a certificate of existence and legal representation. The pre-RUT is assigned immediately. If the legal representative cannot attend personally, the request may be presented by a proxy.
1 day No cost
4 Register the company with the Mercantile Registry, obtain a copy of the certificate of existence and legal representation, register the company’s books and register the company before the National Tax Authority (DIAN)

A Business Service Center (CAE) does not currently operate in Tunja, although there is a project for its implementation.
Once the company or firm is registered, its owner or legal representative should submit and request the registration of the company’s books by means of a letter addressed to the Chamber of Commerce and fill out an application form. The first page of each book or sheet should be submitted labeled (marked) in pencil at the top with the name of the company and the intended use to be given to each book; they must also be numbered consecutively and contain no accounting records.
The procedures at the Chamber of Commerce are:
-Present the application form and books before any of the authorized booths
-Pay the fee for registering the books. With the payment receipt, the entrepreneur can claim the books
Advisers from the Chamber of Commerce also assign the NIT.
6 days COP 824,000 [COP 665,000: commercial license (133.92% of the legal minimum monthly wage); COP 83,000: commercial establishment fee; COP 3,500: registration form; COP 26,000: registration at the Chamber of Commerce and registration of the public document on company constitution; COP 3,500: certificate of existence and legal representation; COP 34,400: cost to register the company’s books (COP 8,600 per book)]
5 Open a bank account

The company needs to open an account at a commercial bank in order to operate. Opening a savings account only takes a few minutes, but opening a checking account may take up to three days, because the bank is required to verify the applicant’s data before approving the account. Each financial entity may have its own additional requirements for opening an account, such as a minimum deposit amount. In general, a checking account can be opened with a minimum deposit of COP 100,000, and a savings account can be opened with the equivalent of one legal monthly minimum wage, which is currently COP 496,900.
1 day No cost
* 6 Payment of the land use certificate

The entrepreneur must pay for this certificate at any commercial bank. The rate is fixed.
1 day COP 8,000
* 7 Obtain the land use certificate

To complete this procedure the company must present the following:
1. A written request addressed to the Office of Municipal Planning providing: the company’s name, business, address, telephone number, signature and identity card number of the applicant
2. A photocopy of the most recent payment on property tax
3. The certificate of existence and legal representation
4. Duly granted power of attorney when acting by proxy
5. The regulation of condominiums and developments, if required
6. The written consent of the landowner or property owner for the development of the requested activity
7. Municipal certificate of good standing

9 days No cost
* 8 Register the company for the payment of Industry and Commerce Tax

This procedure constitutes the local fiscal registration. To register, the entrepreneur must obtain an application form at the Municipal Government, fill it out and submit it along with a certificate of existence and legal representation, copy of the RUT and copy of the identification card of the legal representative.
1 day No cost
* 9 Obtain the certificate from the Fire Department

This security control must be completed annually while the company exists. The company requests an inspection which takes place within the following 10 to 17 days. Then within two to four days after the inspection, the certificate is issued.
20 days No cost
10 Register the company with a family compensation fund (caja de compensación familiar), the National Training Service (SENA) and the Colombian family Welfare institute (ICBF)

Once it is registered, the company must pay these payroll-based contributions within the first eight days of each month. The contribution is then distributed internally between SENA and ICBF. The registration procedure at a family compensation fund only takes a few minutes, but the request is subject to evaluation for approval or rejection.
The documents that must be submitted include: registration form, certificate of existence and legal representation issued by the Chamber of Commerce, photocopy of the legal representative’s identification card and the payroll list, with copies of the employees’ identification cards and documentation related to their children.
Decree 3667 of 8 November 2004, states that the self-assessment and payment of contributions to the Integrated Social Security System (“Sistema de Seguridad Social Integral“) and parafiscal contributions shall be completed by a single or integrated form and all employers shall make parafiscal contributions to the family compensation funds, the SENA, the ICBF, the ESAP, industrial schools, technical institutes, and contributions to integrated social security in the places determined by the administrative bodies within the calendar month following each work period.
1 day No cost
* 11 Affiliate the company to a Professional Risk Management Company (ARP)

The Professional Risk Management Company (ARP) insures against risks due to work accidents and disability due to professional illnesses. The company must affiliate its employees to a public or private ARP of its choice. The procedure for registration with the ARP takes a few minutes and involves the submission of the form, but coverage begins from the following day. Monthly payments are made by means of the integrated form for social security contributions (PILA).
1 day No cost
* 12 Affiliate employees to the public pensions system

The company must affiliate its employees to a pension fund, which may be either the government’s Social Security Institute (ISS) or a private pension fund. Employees may select the fund of their choice. The application process to the ISS takes one day and is completed once the appropriate form is submitted. However, the ISS may take, on average, 8 days to confirm the affiliation. An agent from the public pension fund may visit the company and complete the registration procedure.
8 days No cost
* 13 Affiliate employees to a private pension fund

When employees select a private fund, a representative of the fund will generally visit the company to assist in filling out the forms and expediting the registration process.
1 day No cost
* 14 Affiliate employees to a mandatory healthcare plan

The company is required to affiliate its employees to a Mandatory Health Plan (POS) through a Healthcare Promotion Entity (EPS). Each employee has the right to select the EPS of his or her choice, and companies are required to register the employee at the selected EPS. The employee registration process varies depending on the EPS and the employee’s records.
The EPS representative visits the company’s facilities, obtains the information required for affiliation and submits the request to the EPS. Requirements: copy the identity card of each employee, complete the form, attach a copy of the employment contract; when the employee has family, a copy of the civil registration of the children and of the identity card of the spouse or permanent companion must be attached.
In August of 2008, a new EPS named Nueva EPS S.A. was created as a result of the exceptional transfer of the affiliates of the public-sector EPS ISS, in the framework of Decree 055 of 2007. Nueva EPS was established as a healthcare promotion entity under the contributive regime by means of Resolution 371 of April 3, 2008 of the National Health Superintendence.
3 days No cost
* 15 Affiliate employees to a severance fund

Each employee is free to select the severance fund of his or her choice. The company submits the documents for affiliation and must deposit every year –on February 14th– payment of each employee’s severance entitlement.
1 day No cost
* Takes place simultaneously with another procedure.
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