How Much Does It Cost to Start a Company in Colombia?

Real Costs of Starting a Company in Colombia

One of the most frequent questions we receive from international entrepreneurs is: "how much does it cost to start my company?" The answer depends on several factors, but in this article we give you a complete and updated breakdown for 2026.

Creating a company in Colombia — specifically a SAS (Simplified Stock Company) — has costs ranging from approximately $500,000 COP (~$125 USD) to several million pesos, depending on capital, city, and whether you hire professional legal advice.

The important thing to understand is that these costs are an investment: operating as a sole proprietor has significant limitations in terms of asset protection, access to credit, electronic invoicing, and credibility with corporate clients.

Breakdown of Mandatory Costs

These are the costs you must pay when creating your SAS in Colombia:

1. Departmental registration tax. It's 0.7% of the company's subscribed capital. If your subscribed capital is $10,000,000 COP (~$2,500 USD), you'll pay $70,000 COP (~$17 USD). For a capital of $100,000,000 COP (~$25,000 USD), it would be $700,000 COP (~$175 USD). This is usually the most significant variable cost.

2. Chamber of Commerce registration fees. Range between $50,000 and $150,000 COP (~$12-$37 USD) depending on your city's Chamber of Commerce. Bogotá, Medellín, and Cali have slightly different rates.

3. RUES forms. The Unified Business and Social Registry charges approximately $6,500 COP (~$1.60 USD) per required form. You generally need 2-3 forms.

4. Business registration (first year). Depends on total declared assets. For new companies with assets under $2,847,000 COP (2 minimum wages), registration may be free or have a minimal cost. For higher assets, the rate scales progressively.

5. Book registration. Registering minutes books, shareholder registry, and accounting books costs approximately $15,000 to $30,000 COP (~$4-$7 USD) per book.

Optional but Recommended Costs

Beyond mandatory costs, there are expenses that while not legally required, are highly recommended:

Legal advice for bylaws drafting. Bylaws are the "DNA" of your company. Generic bylaws may work initially but create problems when you need to raise investment, resolve partner disputes, or protect intellectual property. Professional legal advice costs between $800,000 and $5,000,000 COP (~$200-$1,250 USD) depending on complexity.

Trademark registration. Protecting your company name as a trademark with the SIC costs approximately $1,100,000 COP (~$275 USD) in official fees (2026), plus attorney fees if you use legal counsel. The process takes 6-8 months.

Digital signature certificate. Required for electronic invoicing and DIAN procedures. Costs between $100,000 and $300,000 COP (~$25-$75 USD) annually.

Accounting software. From $50,000 COP/month (~$12 USD) for basic solutions to $500,000 COP/month (~$125 USD) for complete platforms with electronic invoicing, payroll, and tax reports.

Accountant. While not mandatory to have a full-time accountant for small companies, you do need one for tax filings. Monthly fees range from $300,000 to $2,000,000 COP (~$75-$500 USD) depending on transaction volume.

Costs by City: Bogotá, Medellín, Cali, and Barranquilla

Costs vary slightly between cities, mainly due to local Chamber of Commerce rates and the industry and commerce tax (ICA):

Bogotá. The Bogotá Chamber of Commerce (CCB) is the largest in the country. Its registration fees are standard. ICA in Bogotá varies between 4.14 and 13.8 per thousand depending on economic activity. For tech companies, the rate is usually 9.66 per thousand.

Medellín. The Medellín Chamber of Commerce has rates similar to Bogotá. ICA varies between 2 and 10 per thousand. The city offers tax incentives for technology and innovation companies.

Cali. The Cali Chamber of Commerce has competitive rates. ICA varies between 2 and 10 per thousand. Cali has a growing startup ecosystem with municipal support programs.

Barranquilla. The Barranquilla Chamber of Commerce offers similar rates. The Barranquilla free trade zone can offer significant tax benefits for qualifying companies.

In general, the cost difference between cities for incorporation is minimal (less than $100,000 COP / ~$25 USD). The real difference is in recurring municipal taxes (ICA).

Recurring Costs After Incorporation

Creating the company is just the beginning. These are the annual costs you should budget for:

Business registration renewal. Paid annually in the first three months (January-March). Cost depends on reported assets and revenue. For small companies, it can range from $50,000 to $500,000 COP (~$12-$125 USD).

Income tax filing. Filed annually. If you don't have a full-time accountant, you'll need to hire one for this filing. Approximate cost: $500,000 to $2,000,000 COP (~$125-$500 USD) for preparation.

VAT filing. If your company is VAT-responsible, you must file bimonthly or quarterly. Many tech service companies are VAT-exempt under certain conditions.

Withholding tax. Monthly filing if your company is a withholding agent.

Exogenous information. Annual report to DIAN with detailed information on clients, suppliers, and transactions.

ICA. Municipal tax on gross revenue. Filed bimonthly or annually depending on the municipality.

Budget between $3,000,000 and $15,000,000 COP (~$750-$3,750 USD) annually in tax compliance and accounting costs, depending on the size of your operation.

Personalized Advice for Your Incorporation

Every company has a different structure. At BREUK we analyze your capital, number of partners, and assets to give you an exact budget that includes all Chamber of Commerce costs, registration taxes, and legal fees.

Schedule a free call and receive a detailed budget for your specific case.

At BREUK we offer incorporation packages that include everything: custom bylaws drafting, complete procedure management, NIT obtainment, and post-incorporation advisory. Schedule a free call to discuss your specific case.