Originally from:
Doing Business in Colombia - 2nd Edition - Hardcover
Doing Business in Colombia - 2nd Edition - Electronic
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Chapter 4
Types of Companies and Branches of
Foreign Companies in Colombia
I. GENERAL CONSIDERATIONS
In general terms under a corporate contract two or more individuals
agree to undertake cash, labor or other monetary contributions in order to
distribute between the same any profits generated from such undertaking or
business activity.
Upon incorporation the company becomes a legal person different from
the partners considered individually.
Business companies may engage in the development of three separate
types of actions:
• Those determined as main activities under their corporate purposes;
• Those directly related to such main activities; and
• Those intended to exercise rights and fulfill legal or conventional
obligations derived from the very existence and activity of the
company.
Those actions listed under literals a) and b) above are related to the
purpose pursued by the company or activity of the company and, they must
be directly related to the same. Those listed under literal c) are actions
different from the corporate purpose but which the company is in capacity
of completing since they are necessary for enforcing its rights (actions of
civil, administrative, etc., nature) or for fulfilling obligations arising from
the existence and activity of the company (i.e., labor contracts, consulting
agreements, labor related undertakings, etc.).
II. TYPES OF COMPANIES
The main types of business companies in Colombia are stock
corporations, limited liability companies, simplified stock companies,
general partnerships and limited partnerships. Often, foreigners doing
business in Colombia prefer to establish the branch of a foreign company.
Below we provide the most outstanding features of each of the aforesaid
types of companies:
About the Firm:
Cavelier Abogados, a Colombian law firm established in 1953 that combines experience and innovation and stands out as a leading advisor in Latin America in several fields of the law. Using the most modern legal infrastructure and technology, the firm offers clients a strategic partnership for business development with legal services in Colombia and overseas countries. The strength of Cavelier Abogados lies in its Intellectual Property Law and Business Law areas, but the firm is also strong in Corporate Law, Financial Law, Foreign Investment Law, Tax Law and Mining and Hydrocarbons Law. Besides occupying prominent places in the top rankings of law publishers, the firm employs several university professors and authors of books on the practice areas of the firm. Cavelier Abogados also has a network of 469 correspondents in 143 countries. It was also one of the first Colombian law firms to have its own Code of Ethics, which contains higher standards of conduct compared to local legislation. The firm uses a multidisciplinary approach to find creative, prudent and value generating business solutions that optimize clients' return on investment while minimizing risks.
Contributors Include:
Natalia Tobón-Franco; lawyer from Universidad de los Andes (Bogota, Colombia); L.L.M. in Intellectual Property Law from Franklin Pierce Law Center (New Hampshire, U.S.A.); professor and author of several books and articles on Copyright Law, Freedom of Speech and Entertainment Law; associate at Cavelier Abogados.
Eduardo Varela-Pezzano; lawyer and specialist in Intellectual Property Law from Universidad del Rosario (Bogota, Colombia); L.L.M. candidate on Technology & Intellectual Property Law from the University of Liverpool (Liverpool, U.K.); Intellectual Property Law professor at Universidad del Rosario and author of several books and articles on Freedom of Speech, Patent, Trademark, Copyright and Entertainment Law; associate at Cavelier Abogados.
