Legal recommendations when investing in Colombia

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Legal recommendations when investing in Colombia

septiembre 18, 2015 Slideshow inglés 0

Legal recommendations when investing in Colombia

Colombia has witnessed a considerable increase in the volume of foreign investment within the past years.

 Globalization, economic growth, stability of the Colombian market and the signature of free trade and cooperation agreements, have caused an increase in the confidence to invest in the country.

 Investing in a foreign country can be daunting given the many aspects to be taken into account and that, if not observed, may have a negative impact on the economy and reputation of the investor.

 For this reason, at the moment of committing to an investment, it is necessary to  analyze several basic points that would determine the outcome of the investment. By way of example we suggest the analysis of (i) under what legal form the investor will undertake the business, such as forming a separate legal entity or establishing a partnership with a local business, (ii) how and where is the investor going to purchase any assets, especially when it comes to real estate (if that is the proposed project purpose), (iii) where is the new company going to operate, (iv) what is the tax impact and foreign exchange impact associated with the project investment, (v) what benefits are there for new companies, which could be used to ease the financial burden of the investor during the first years of the project, (vi) if applicable, how to import the machinery and goods needed for the operation and, equally important, (vii) management of the expatriates entering the country (either for a short period of time to help with the set-up of the operation, or those who stay in the country for a long term).

 If you want to know more about investing in Colombia, we invite you to visit the following link




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