SAS Incorporation in Colombia: Guide & Heavnn Support

Business Setup guide

Quick answer — Colombian SAS at a glance. A Colombian SAS (Sociedad por Acciones Simplificada) can be formed by a single foreign shareholder and registered with the local Chamber of Commerce, often within days, with no minimum capital. Corporate tax is 35%. Spending more than 183 days in Colombia in any 365-day period makes you a tax resident taxed on worldwide income. The digital nomad visa allows long stays but does not prevent tax residency.

Executive Summary & Context

Medellín, Bogotá and Cartagena have become some of the most popular bases for remote workers in the Americas, helped by a dedicated digital nomad visa, a favourable time zone for North American clients and a lower cost of living. The SAS, introduced in 2008, made company formation simple and flexible.

The tax side needs care. Colombia's 183-day test uses any rolling 365-day period, so a nomad who splits time across two calendar years can become resident without noticing. Once resident, you are taxed on worldwide income. A Colombian SAS also pays 35% corporate tax, which is high by regional standards.

Who a Colombian SAS suits

Who it does not suit

It does not suit nomads serving only foreign clients who want to avoid Colombian tax residency. It is not designed for locally employed expats or retirees.

Comparing Latin American options? See our guide to open a company in Latin America.

Legal Entities & Comparison Matrix

EntityKey featuresTypical use
SASOne or more shareholders; flexible statutes; no minimum capitalMost founders
SATraditional corporationLarge companies
Branch of a foreign companyForeign parentForeign companies

Key Colombian taxes

TaxRule
Corporate income tax35%
Dividends to non-residents20% withholding, reduced by treaty
Dividends to residentsAdded to taxable income under special rules
VAT (IVA)19%
SIMPLE regimeOptional simplified regime for small businesses, based on gross income

If you are comparing destinations, see the Mexican S. de R.L. setup and Brazil LTDA vs SLU.

Substance, Residence & Compliance Governance

The 183-day rule

You become a Colombian tax resident if you spend more than 183 days in Colombia, continuous or not, within any 365-day period. If that period spans two years, you are resident for the second year. Track your days carefully.

Foreign investment registration

Foreign capital invested in a Colombian company must be registered with the Central Bank (Banco de la República) to allow repatriation of profits and capital.

Compliance and AML/KYC

Setup Costs & Economic Model

Cost itemOne-off or recurringIndicative amount (2026)Notes
Chamber of Commerce registrationOne-offDepends on capitalOnline or in person
Lawyer or formation serviceOne-offUS$500–2,000Common for foreigners
AccountantMonthlyUS$150–400Mandatory for most companies
Annual commercial registration renewalYearlyDepends on assets

Amounts are indicative.

The economic model: COP 400,000,000 of profit

StepAmount
Corporate tax at 35%COP 140,000,000
Dividend to a non-residentCOP 260,000,000
Withholding at 20% (before treaty relief)COP 52,000,000
Net to the shareholderCOP 208,000,000

Colombia is a high-tax option for company profits. Small businesses may benefit from the SIMPLE regime instead.

Step-by-Step Formation & Business Banking

  1. Check your residency position using the rolling 365-day rule.
  2. Draft the SAS statutes with one or more shareholders.
  3. Register with the Chamber of Commerce and obtain a provisional tax number.
  4. Open a bank account and deposit the capital.
  5. Register the foreign investment with the Central Bank.
  6. Finalise the RUT with DIAN and set up electronic invoicing.

The Colombia Business Bank Comparison Guide compares the main banks for foreign-owned SASs — get it when you start your Colombian setup with Heavnn.

Frequently Asked Questions (FAQ)

Can a foreigner open an SAS in Colombia?

Yes. An SAS can have a single shareholder of any nationality and no minimum capital.

What is the corporate tax rate in Colombia?

The general corporate income tax rate is 35%.

When do I become a tax resident in Colombia?

When you spend more than 183 days in Colombia, continuous or not, within any 365-day period.

Does the digital nomad visa make me tax-exempt?

No. The visa allows you to stay, but if you exceed 183 days in a 365-day period, you become a Colombian tax resident.

Do I need to register foreign investment?

Yes. Foreign investment in a Colombian company should be registered with the Central Bank to repatriate profits and capital.

Launch Your Colombian Setup with Heavnn

In Colombia, the calendar is your biggest risk. Heavnn tracks your residency before you set up.

Start your Colombian setup with Heavnn →

This guide is general information, not tax or legal advice. Rates and fees are indicative as of October 2026.

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