Registering a business

Peter (Moderator) says on Nov 22, 2007, 07:38:

I'm not sure about the specifics in Colombia but there are generally a lot of tax implications to understand, so do some research there. good luck!

Poor but snappy

usher127 says on Nov 22, 2007, 07:42:

yeah, but nobody seems to know anything! Even people that have registered their business!

vicshere says on Nov 22, 2007, 07:51:

cause the rules change for every person you ask and every city your in.....
you need camara de comercio first....no capital required
then a very long visit to DIAN..they do have a website that's pretty complete if you read Spanish

listo

Morrongo says on Nov 22, 2007, 07:52:

First go to Dian..and registar ..ask for ruta(think thats the spelling) with this in hand go to the Camara Comercio and with passport or cedula you can registar your business. This is one of the simple less complicated things to do here,its very user friendly. Depends on the business you want to registar, you can registar a business for 1,000,000 cop capital....but if you require a cedula later as a comerciate Independente you will need to registar 43,000,000 min cost 350,000,000 at the Camara ..lots of factors unknown here, like type of business, but that the bones of it!!

usher127 says on Nov 22, 2007, 07:56:

So Camara Comercio and then Dian... or as Morrongo says, the other way round?

Rob77 says on Nov 22, 2007, 07:57:

It is not that important to register your business with a lot of capital. If you put too little, it may make things more difficult in opening business bank accounts. Otherwise it doesn't come into play much, unless you are in the construction biz.

I once thought it would matter too. But I was set straight. An example: I have friends who own a company with 3000 employees. They told me they registered their business with capital of only 500 mil.

You get charged by entities like the Camara de Comercio, upon registering, and each year, based on the amount of capital. So, unless you find a specific purpose for registering with a high amount, keep it low and you will save money.

An individual business is still a company. Businesses with less than 25 employees will be considered Empresa Unipersonal (EU).

BOYCOTT CITGO - CHAVEZ SUCKS!!!

vicshere says on Nov 22, 2007, 07:59:

you can open a business without a rut...but do need a cedula

listo

RAAAY says on Nov 22, 2007, 08:00:

Get an accountant and an attorney...........You will need an accountant as................ once registered you will need to file tax forms.............some monthly.....some bi-monthly.........even if the business is not making any income.......

One of the annual taxes is based on how much you show as initial capital..........so, unless you are starting the business for the purposes of the business visa...........best keep this low. However, if you eventually want to take money out of the country...........???

I can give you my accountant's info...........so far I've been happy with him...........and he comes with a very useful added bonus..........his wife's job........and I'm talking strictly business here. You have my number.


.

.........Its useless to argue with ignorance

Morrongo says on Nov 22, 2007, 08:06:

Camara Comercio would not let me registar without rut in hand..this was in Buenaventura and Cali....this was my experience

usher127 says on Nov 22, 2007, 08:07:

Thanks people

So, in conclusion... I register the minimal amount of capitol... based on this amount I will pay a yearly amount of tax.

Thereafter... I pay tax both monthly and bi-monthly. Why do I pay 2 forms of tax?

RAAAY, I didnt quite understand the 'wife's job' comment. I guess i'm being thick...

vicshere says on Nov 22, 2007, 08:23:

wife opened oury business with her cedual.....at that time didn't want to attempt using my cedual......later we had to get a rut they give like 3-4 months to get a rut...because a lot of business end before the 3 months

listo

Rob77 says on Nov 22, 2007, 08:23:

Usher, once your business is registered, you must report to the DIAN every month, even if you report zero activity, or they fine you a minimum of 210 mil per month!

You do not need a RUT to register your business. The Camara de Comercio will give what they call a pre-RUT until your business is fully registered. Then you will go get a certificate of your RUT with the DIAN.

If you plan to start a very small, simple business, ask a friend who has a small business to recommend a very cheap accountant to do the work for you. If it is a major business you are planning, get a professional accountant who comes highly recommended and has some big clients already.

BOYCOTT CITGO - CHAVEZ SUCKS!!!

RAAAY says on Nov 22, 2007, 08:29:

...." I didnt quite understand the 'wife's job' comment. I guess i'm being thick..."

She has a very useful goverment job.

.........Its useless to argue with ignorance

vicshere says on Nov 22, 2007, 08:31:

a very useful job in Colombia could be....a prostitute

listo

usher127 says on Nov 22, 2007, 08:32:

it did cross my mind...

vicshere says on Nov 22, 2007, 08:37:

kind of figure it did

listo

Medellin Traveler says on Nov 22, 2007, 09:06:

"so, unless you are starting the business for the purposes of the business visa" - RAAAY

What does one need to qualify for this type of visa? Does it matter what type of business and how much capitla is invested to qualify?

Medellin es una chimba! www.medellintraveler.com

RAAAY says on Nov 22, 2007, 09:29:

M.T........I sent you an e-mail

.........Its useless to argue with ignorance

pedro says on Nov 22, 2007, 10:25:

Rob77, exactly what do you need to report to DIAN each month? IVA? That does not match my experience, which is to file every 2 months.

My experience is the same as Morrongo's. However I believe you'll need a raft of papers besides just your passport and RUT. Company consitution etc. Probably best to plan a reconnaissance visit to the camara to get the exact requirements. There's a camara de comercio in El Poblado.

que nota!

usher127 says on Nov 22, 2007, 11:20:

Btw, i've been told that it would be better to wait until January 1st to register the busines, otherwise I will incur the yearly tax costs just for the privaledge of being registered in Dec.

Does that make any sense? Seems ridiculous to me..

RAAAY says on Nov 22, 2007, 12:04:

Pedro...............you need to file your employee information monthly.....their pension health and other deductions.........etc etc..........sales tax and other stuff is bi-monthly.

.........Its useless to argue with ignorance

Morrongo says on Nov 22, 2007, 14:39:

Camara Comercio runs March to March here in Cali..so i suppose its the same where you are....?--if you register now you need to register and pay again in March. I cancelado one of my registrations after a year with no activity and paid no tax

MT there are a hoot load of different types of Visa...its depending how you are registered with the Camara..i registered the min of 43,000,000 for a Comerciente Independiente..
Usher127 It would appear that different areas have different rules...best ask at the Camara where you want to register..as i had to have rut in hand before allowed to register at the Camara in Cali

pedro says on Nov 22, 2007, 14:56:

Thanks Ray.

que nota!

aztec says on Nov 23, 2007, 03:59:

Legal Framework 2007


http://www.proexport.com.co/vbecontent/library/documents/DocNewsNo6050...

webmanco says on Nov 23, 2007, 05:03:

You need to describe your main activity by codes and secundary activities. The more money you register at the begining the more money you will had to pay.

If in Bogotá and for further information visit this link.

http://www.bogotaemprende.com.co/

(I really hate it when women get their panties all bunched up their butt, they can get so cranky!) Poor butt happy

Rob77 says on Nov 24, 2007, 05:29:

In theory, there should be no problem opening accounts with an EU either.

BOYCOTT CITGO - CHAVEZ SUCKS!!!

getting better says on Nov 25, 2007, 15:24:

A few points:
1. You cannot lose more than half your capital else you have to liquidate, so whilst a small capital seems to make sense, be careful.
2. It is easy for an individual to get a RUT at the DIAN, I applied on the internet and went to collect the number. The queue is about an hour but there is a ticket system so you can go for a coffee until your number comes up.
3. An accountant and revisora fiscal will cost around 800,000 pesos a month even if only a few hours work a week.