There are four legal entity types that are most widely used by foreign investors to channel their investments into Colombia: (i) simplified stock company, (ii) limited liability company, (iii) corporation, and (iv) foreign company branch.

The simplified stock company (“S.A.S.”) has been well-received by the business community since its creation in 2008, particularly because of its flexibility in terms of the incorporation process and the simplicity for its shareholders have to establish the terms and conditions to regulate its internal structure (i.e. possibility of including an undetermined corporate purpose, having a sole shareholder, stating an undefined term of duration, among others).

In other cases and due to certain foreign exchange benefits, companies active in the mining and hydrocarbon sectors may prefer to establish a foreign company branch.

I will like to state some brief comments on the corporations as well as the incorporation of a foreign company branch regulation: