Understanding the business etiquette in Colombia is paramount to the success of your business endeavors in one of Latin America’s most vibrant and promising economies. Navigating through local laws, corporate protocols, language nuances and cultural disparities can present challenges for foreign executives seeking to penetrate the Colombian market. So if you are considering starting a business in Colombia, the following seven tips on business etiquette in Colombia should come in handy.
Key takeaways on business etiquette in Colombia
| Build relationships | A great deal of importance is placed on building personal relationships, knowing who you are doing business with and using correct formalities. |
| Punctuality | Ignore the stereotypes and make sure you do things on time to make a good impression. |
| Negotiation | Be prepared to negotiate and business etiquette in Colombia requires patience when doing so. |
| Communication | Clear communication in English and Spanish will help both with business matters and with building those personal relationships. |
| Stay respectful | Colombians do not appreciate lazy stereotypes about the country and negative portrayals. However, engaging positively with the culture will reap rewards. |
7 tips on business etiquette in Colombia:
When you are doing business in Colombia, you should remember these seven things for smooth relations with your partners:
- Comply with local regulations.
- Dress accordingly.
- Be aware of business formalities.
- Learn some Spanish.
- Be punctual.
- Understand the culture.
- Avoid common cultural stereotypes.
1. Comply with local regulations
Without exception, all multinational companies and foreign businesses must comply with Colombian regulations. This is essential to avoid fines and penalties from local authorities that can compromise civil and criminal liability. Understanding corporate laws and business etiquette in Colombia provides you with the necessary tools to face any legal problem or inconvenience that may arise.
Certain aspects of the Colombian judicial system can be tricky to navigate, such as when and how you can appeal decisions, or sudden changes in legislation that are approved by the Congress or municipal authorities.
For those unfamiliar with Colombian laws and regulations, it is highly recommended that you partner up with a locally based expert to guide you along your commercial journey.
2. Dress accordingly
While this might seem obvious, keep in mind that weather affects business etiquette in Colombia. Some cities, such as the capital Bogotá, are relatively cold with regular rain, while many other cities are hot all year round, with sometimes oppressive humidity on the coasts.
3. Be aware of business formalities
4. Learn some Spanish
However, to demonstrate your interest in the local culture and any partnership you are seeking to develop, it is highly recommended to learn some Spanish basics. Most Colombians you meet for business will say “nice to meet you,” but that doesn’t have to stop you impressing them with the response “mucho gusto.”
5. Be punctual
Colombians are often depicted as easy-going people with a flexible attitude to timekeeping. While in social settings that can often be true, it is increasingly uncommon in professional environments, especially those with regular dealings with foreign companies.
Punctuality is an essential aspect of business etiquette in Colombia if you want to make a good impression, especially if you are from a country perceived to be very punctual, as many English-speaking countries are within the local business environment.
6. Understand the culture
As a courtesy, local businesses that host foreign businesspeople will often invite them on a tour of the main historical sites of the city they are visiting, as well as take them to famous or typical restaurants. Therefore, it may be a good idea to do some preliminary research on the place you want to visit and the activities you would be keen to do. Showing a genuine interest in Colombia will get you a long way in both social and professional settings.
Colombia offers a very rich and diverse culture. Its carnivals, varied regional cuisine, historical heritage, and biodiversity, among a host of other factors, attract millions of people from all over the world each year.
7. Avoid common cultural stereotypes
Aspects of Colombian society and its recent history have become popularised by TV shows and movies in recent years, which often reinforce certain negative stereotypes associated with the country. While foreign visitors often use these topics to break the ice in conversations, it is worth taking into account that Colombians are generally proud of their country and frustrated by pervasive negative stereotypes about it.
Avoid uncomfortable situations with potential business partners by steering clear of such topics, unless you can speak about them in an informed manner. Even if you can, unless there is a direct question that necessitates an answer, feigning a lack of knowledge can avoid causing irritation.
FAQs on business etiquette in Colombia
These are some of the most common questions we receive from international investors interested in business etiquette in Colombia.
1. Can a foreigner own a business in Colombia?
Yes, by either legal persons (legal entities) or natural persons (individuals).
2. Why do business in Colombia?
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.
3. How long does it take to register a company in Colombia?
Registering a company in Colombia takes four weeks.
4. What does an LTDA company name mean in Colombia?
LTDA in a company name in Colombia refers to a Sociedad de Responsabilidad Limitada, which is similar to a Limited Liability Company. This type of corporate structure is characterized by the partners’ liability being limited to their contributions to the company’s capital.
In an LTDA, partners are not personally responsible for the company’s debts beyond their investment, providing a level of protection for individual assets. Small to medium-sized businesses frequently use it in Colombia because it combines elements of partnership and corporate structures, providing flexibility and legal protections.
5. What does an S.A.S company name mean in Colombia?
S.A.S means Sociedad por Acciones Simplificada, which is similar to a Joint Stock Company. This is a type of commercial company with legal presence and assets independent from those of its owners. Shareholders are liable only up to the amount of their respective contributions corresponding to the integration of the shares they subscribe to or acquire. Shareholders are not liable for labor, tax, or any other type of obligations incurred by the company beyond its contribution, except if the legal presence of the company is declared unenforceable.
6. What entity types offer Limited Liability in Colombia?
Both the Sociedad por Acciones Simplificada (S.A.S) and Sociedad de Responsabilidad Limitada are Limited Liability Companies in Colombia.
Biz Latin Hub can help you with business etiquette in Colombia
Understanding business etiquette in Colombia can be key to the long-term success of your business. Engage a local trusted expert who can offer you professional commercial representation and guide you in all of your local dealings to guarantee success.
Get in touch with us today to find out more about business etiquette in Latin America and receive personalized assistance. Or learn more about our team and expert authors.
