www.doingbusinessincolombia.com
EMAIL info@doingbusinessincolombia.com
TEL +57-305-461-9162
For doing business in Colombia, according to Article 10 of the Colombian Commercial Code, «merchants ( businessman) are individuals who professionally engage in any of the activities that the law considers commercial.
The status of Colombian merchant ( Colombian Businessman) is acquired even if the commercial activity is carried out through an attorney-in-fact, intermediary or third party». Therefore, a merchant ( Colombian Businessman) is a natural person or legal entity that voluntarily and regularly and professionally engages in a legal act considered commercial by law.
It is clear from the foregoing that the status of merchant is obtained by a person through the professional, regular, and non-occasional performance of commercial acts, as established in Article 11 of the Commercial Code, which states: «persons who occasionally carry out business transactions shall not be considered merchants with regard to such transactions.» Commercial activities.
Now that we understand that merchants ( Colombian Businessman) are individuals who, as stipulated by law, engage in commercial activities, we must define what these commercial activities are.
Well, Article 20 of the Colombia Commercial Code lists each of the activities that the law considers commercial: «For all legal purposes, the following shall be considered commercial:
- The acquisition of goods for consideration with the intention of selling them in the same manner, and the sale thereof.
- The acquisition of movable property for consideration with the intention of leasing it.
- The receipt of money on loan, with or without collateral, in order to lend it, and subsequent loans, as well as the regular lending of money.
- The acquisition or sale, for consideration, of commercial establishments, and the pledging, leasing, administration, and other similar operations related thereto.
- Participation as an associate in the formation of commercial companies, acts of management thereof, or the for-profit negotiation of interest, quotas, or shares.
- The issuance, granting, acceptance, guarantee, or negotiation of negotiable instruments, as well as the purchase for resale, exchange, etc., thereof.
- Banking, stock exchange, or auction operations.
- Brokerage, business agencies, and the representation of national or foreign firms.
- The operation or provision of services related to ports, docks, bridges, roads, and landing fields.
- Insurance companies and insurance activity.
However, just as the law establishes what commercial acts are, it also stipulates what activities are not considered commercial.
It does so in Article 23 of the Colombia Commercial Code: The following shall not be considered commercial:
- The acquisition of goods for domestic consumption or the use of the purchaser, and the sale thereof or of the surplus.
- The acquisition of goods to produce works of art and the sale thereof by the author.
- Acquisitions made by officials or employees for public service purposes.
- Sales made directly by farmers or ranchers of the produce of their crops or livestock, in their natural state. The transformation activities carried out by farmers or ranchers with regard to such produce shall also not be considered commercial, provided that such transformation does not constitute an enterprise in and of itself; and
- The provision of services inherent to liberal professions
For further information about doing business in Colombia please contact us
www.doingbusinessincolombia.com
EMAIL info@doingbusinessincolombia.com
TEL +57-305-461-9162
