www.doingbusinessincolombia.com
EMAIL: info@doingbusinessincolombia.com
TEL +57-305-461-9162
A simplified stock company, known as «SAS» (Sociedad por Acciones Simplificada) in Colombia, is a popular legal form of business organization in the country. The SAS structure was introduced to promote entrepreneurship and make it easier for small and medium-sized businesses to operate.
One of the significant advantages of forming an SAS is the simplified incorporation process. Compared to other types of companies, the SAS requires fewer legal formalities and can be established quickly. The process involves creating and registering the company’s bylaws, appointing a legal representative, and obtaining a tax identification number.
An SAS allows for flexible corporate governance, as the shareholders have the freedom to determine the company’s organizational structure and management rules. This means that shareholders can tailor the operational framework according to their specific needs and business goals. This flexibility often fosters a more efficient decision-making process.
In terms of liability, an SAS provides limited liability to its shareholders. This means that the personal assets of the shareholders are protected, and their liability is generally limited to the capital they have invested in the company. This feature helps mitigate risks and encourages investment.
Another attractive aspect of an SAS is the ease with which shareholders can transfer their shares. Unlike other types of companies, where share transfers may require complex procedures, an SAS allows for seamless share transfers through a mere endorsement or assignment. This flexibility promotes liquidity and facilitates investment in the company.
Furthermore, an SAS benefits in Colombia from certain tax advantages. It is subject to a simplified tax regime, known as the «integral tax regime» or Régimen Integral de Tributación. This regime simplifies the tax obligations, combining income tax, VAT, and withholding tax into a single payment, potentially reducing administrative burdens.
Overall, the SAS legal structure has become a popular choice for entrepreneurs and investors in Colombia, mainly due to its simplicity, flexibility, and limited liability protection. It has contributed to the growth of small and medium-sized businesses, stimulating economic development in the country.
If you want further information please contact us for a consultation.
www.doingbusinessincolombia.com
EMAIL: info@doingbusinessincolombia.com
TEL +57-305-461-9162
