www.doingbusinessincolombia.com
EMAIL: info@doingbusinessincolombia.com
TEL +57-305-461-9162
A Colombia commercial establishment or a store is a group of goods organized by an entrepreneur to fulfill the goals of a company. It can be owned by a person or a corporation, or shared among multiple individuals, and is dedicated to carrying out commercial activities. The purpose of a commercial establishment or store in Colombia is to facilitate the production, transformation, circulation, administration, custody of goods, or the provision of services. It serves as the core of the company, as all economic activities are conducted within one or more of these establishments.
It is important to differentiate in Colombia law between a commercial establishment/store and the commercial unit (physical asset) in which it operates. The owner of a commercial establishment may or may not own the Physical unit or asset. The use of unit or assets to operate a commercial establishment necessitates consideration of the regulations outlined in Articles 518-524 of the Code of Commerce, particularly in the case of lease contracts.
In example: John US citizen has a commercial store of Bikes and He looks in Colombia for a place to open his business. John finds Maria who owns a unit in a shopping mall and they sign a lease contract.
For Colombian law: John owns the business “selling bikes.”
Maria owns the physical unit “the space.”
Jonh opens his store in the unit of Maria because she rented it to John, but they are not together in the business of selling bikes, only john.
To summarize, a commercial establishment/store is in Colombia an essential component of a company, serving as the physical and logistical hub where business operations are conducted. It is crucial to understand the distinction between a commercial establishment and the commercial premises in which it operates. Compliance with the regulations outlined in the Code of Commerce is necessary when determining the use of premises for a commercial establishment, especially in lease agreements lasting over two consecutive years.
US citizens can open, own, and run a store only with US passport in Colombia.
If you are thinking of opening a business contact us for further information
www.doingbusinessincolombia.com
EMAIL: info@doingbusinessincolombia.com
TEL +57-305-461-9162
