The country is an exciting place to invest at the moment. As the economy continues to develop and grow following a turbulent past, it is emerging as a top investment destination, with executives looking to incorporate a company in Colombia. Just like any other country, you will need local representation, which includes an auditor in Colombia.
Before you launch or move your business to the country it is crucial that you understand the local tax and accounting requirements, such as the tax authority (DIAN), as they may differ from your home market. An auditor in Colombia can help you navigate these new waters and make sure that your business stays compliant under both local and international law.
Partnering with a local specialist such as Biz Latin Hub means that you will have an experienced guide on your side as you enter the new market. We can set you up with an auditor in Colombia or elsewhere in Latin America and the Caribbean, with our 18 dedicated local offices across the region. Our array of back office services can help you through company formation and ongoing support such as help with accounting.
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Why invest in Colombia?
The country has an array of advantages that businesses can capitalize on. Its strategic location in South America provides easy access to regional and international markets. Colombia has a rapidly growing economy that is a hotspot for innovation.
The substantial number of young and skilled workers leads to competitive labor costs. Colombia’s growing workforce is a big reason businesses have been looking to expand into the country.
Colombia has made significant strides in improving its business climate through regulatory reforms that simplify bureaucratic processes and provide incentives for foreign investment.
For example, the government offers tax incentives and has established free trade zones for foreign entrepreneurs to incentivize company incorporation.
Colombia has abundant natural resources, especially agriculture, mining, and renewable energy. The ongoing enhancements in infrastructure and transportation networks also streamline business operations. Additionally, the country’s diverse and growing consumer base makes Colombia a promising market for companies seeking growth in Latin America.
Why does a company need an auditor in Colombia?
Local expertise is crucial for foreign investors to navigate the complexities of doing business in a new country. Financial regulations in Colombia, for example, can be particularly intricate, requiring several months or even years to fully comprehend.
As a precaution against potential issues, utilizing the services of local specialists is highly recommended. The three most common legal entity (company) structures in Colombia are a Joint Stock Company (Sociedad Anónima – S.A), a Limited Liability Company (Sociedad de Responsabilidad Limitada – S.R.L) or a simplified stock company (Sociedad por Acciones Simplificada – SAS). The S.A.S is our recommendation.
There are specific local laws and fiscal requirements when registering a new entity in Colombia. Any company that is publicly traded or has a significant presence must have an auditor. The latter is defined as assets equal to 5,000 times the minimum monthly wage or income around 3,000 times the same. There are also certain other conditions depending on sector and so forth.
It is also important to note that accounting records must be kept in Spanish.
What is the role of an auditor in Colombia?
The auditor is there to check that the company is conducting its business appropriately to aid financial transparency. That means that they may not be an employee of the company, nor may they be connected to the company in any way. This allows them to be impartial and independent when conducting the audit.
What qualities does an auditor need?
Your auditor must be a registered public accountant. When looking for an auditor in Colombia, there are certain factors to keep in mind, including:
- Experience: Look for an auditor that has experience working with foreign investors and in your industry.
- Reputation: Check online reviews and feedback to assess the quality of service you can expect.
- Language: Ensure that the auditor you work with is fluent in a language you are comfortable communicating in.
- Communication: If you will be spending extended periods outside of Colombia, choose a lawyer or firm that is proficient in using online tools for easy management and reporting.
FAQs on an auditor in Colombia
It is important to have an experienced auditor in Colombia to ensure that your company is compliant with the country’s financial rules.
Any company that is publicly traded or has a significant presence must have an auditor. The latter is defined as assets equal to 5,000 times the minimum monthly wage or income around 3,000 times the same. There are also certain other conditions depending on sector and so forth.
You can employ one, but you must also have an external auditor who is not in any way connected to the business.
They must be a registered public accountant. When looking for an auditor in Colombia, there are certain factors to keep in mind, including:
Experience: Look for an auditor that has experience working with foreign investors and in your industry.
Reputation: Check online reviews and feedback to assess the quality of service you can expect.
Language: Ensure that the auditor you work with is fluent in a language you are comfortable communicating in.
Communication: If you will be spending extended periods outside of Colombia, choose a lawyer or firm that is proficient in using online tools for easy management and reporting.
It is important to note that accounting records must be kept in Spanish.
Biz Latin Hub can provide you with an auditor in Colombia
Starting a company in Colombia requires the support of a qualified financial team from the outset to ensure that your business complies with local laws and is well-regarded by the authorities.
Without this, even a well-planned business may struggle to thrive. At Biz Latin Hub, we have a team of locally-based specialists who possess a comprehensive understanding of the Colombian business environment, including its laws and complications.
We are well-equipped to assist foreign companies looking to conduct commercial activity in the region with all accounting, taxation, and financial matters.
If you’re interested in learning more about the Colombian economy, the opportunities for starting a company there, and need an auditor in Colombia, please contact us today.
