Opening A Business In Colombia

• Published date: 19 June 2023
• Subject Matter: Corporate/Commercial Law, Employment and HR, Corporate and Company Law, Contract of Employment, Health & Safety, Employee Benefits & Compensation
• Law Firm: L&E Global
• Author: López & Asociados and Alejandro M. Castellanos López (López & Asociados)

1. INTRODUCTION

While globalisation has brought the world's markets closer together, complying with the various multi-jurisdictional legal obligations and responsibilities is becoming more and more challenging, especially after a pandemic situation and new market conditions for potential investors seeking to expand their operations.

Throughout 2020 and 2021, companies in Colombia required assistance with the design of the hiring and employment remuneration structure for their reactivation in the country, with the common goal to guarantee the service provision and continuity of services after more than a year of suspension of activities due to the Covid-19 crisis. In order to make it easier for businesses to satisfy the rigorous conditions imposed by the nation's laws, obtaining the appropriate legal advice is key when opening up shop in Colombia. The accompaniment of an experienced law office is therefore imperative, particularly since we are expecting important changes in labour and employment matters due to the new government proposals that will likely be issued in the first semester of 2023; and failure to comply with the necessary requirements such as corporate, commercial registrations and labour obligations, could expose the employer to significant legal, economic and even reputational risks.

With more than 15 years in the Colombian legal market, López & Asociados Abogados has earned a reputation for excellence as one of the nation's most prestigious law firms in labour, employment and benefits services. We would of course be delighted to serve as your strategic partner and assist with your organisation's Colombian expansion.

2. LABOUR AND EMPLOYMENT LAW REQUIREMENTS

a) Employer Policy Requirements

In order to be legally compliant, employers are required by legislation to create and implement a number of employment policies. The following are required statutory policies for any organisation, which seeks to start hiring employees and develop a commercial activity in Colombia:

• An employee handbook. An employee handbook is only mandatory for employers occupying more than five (5) employees in commercial companies, more than ten (10) employees in industrial companies, or more than twenty (20) employees in agricultural companies.
• A written management system of health and safety in the workplace. For implementing the written management system, a study must be done by a professional in health and safety at the workplace to determine specific requirements...