Today more than ever, free zones have demonstrated their ability to boost the economy of companies, regions, cities and a country. The numbers prove it and from Zona Franca de Occidente we will address this positive context and tell you how to establish your company in a free zone in Colombia and the requirements to start. Be part of the new muscle of the country's economy!
And what are these encouraging numbers? First, it must be said that "the Directorate of National Taxes and Customs, Dian, recalled, through a concept, that the operations carried out from the national customs territory to free trade zones are considered as exports", according to the newspaper El Tiempo.
The same media outlet states that "in this way, highly productive and competitive industrial processes can be developed under the concepts of safety, transparency, technology, clean production and good business practices. Likewise, trade procedures for goods and services can be simplified to facilitate their sale".
In line with this, the National Association of Foreign Trade(Analdex) reported that, at the end of July of this year, exports from the country's free trade zones amounted to USD FOB 278.3 million; this was equivalent to foreign sales with an increase of 16.2%, since they increased from 408.7 thousand metric tons to 474.9 thousand metric tons.
The top five destinations of the country's exports, according to the entity with data from the Dane, was established as follows:
On that path, another news item revealed that imports from free trade zones totaled US$180.6 million for August of this year, which meant that imports increased 2.3% compared to August 2022.
Under all this scenario, it is impossible not to think about the benefits of having a business in these special areas, so it is vital to understand how to establish your company in a free zone in Colombia and the requirements to start.
Key steps on how to establish your company in a free trade zone in Colombia
For those brave entrepreneurs who wish to go further and for those who still have doubts, we will go into the intricate details of how to establish your company in a free zone in Colombia and the requirements to get started. Setting up in such a special area requires a step-by-step guide.
The discovery
Before getting into the practical details, it is essential to understand what free trade zones really are and why they are so attractive for business in Colombia. They are delimited areas that offer tax, customs and logistic benefits for the companies that establish themselves in them. These areas seek to boost foreign trade, investment and employment generation.
The first thing is to know the details about what they are and how to establish your company in a free zone in Colombia and the requirements to start.
Research and selection: beyond the surface
Choosing the right free trade zone is like choosing the land on which to build your house. You should consider several aspects, among them, the geographical location and the additional services it offers, such as transportation infrastructure, security and logistic connections. In addition, it is good to know about the opinions of other organizations established there in terms of operational efficiency and satisfaction.
In Zona Franca de Occidente, we handle custom construction, where there are tailor-made projects with the development of Built to suit (BTS) warehouses, adapting each one to the productive processes, which means efficient investments and optimizing resources. Similarly, we have a circuit of internal roads with a width of between 10 and 17 meters for heavy traffic, a large external parking yard for cargo vehicles, warehouses with docks over 18 meters long and internal and external parking for visitors, among many other features.
Registration and documentation, ensuring the legal scaffolding of the company.
With the selection of the free zone decided, it is time to face the bureaucracy. A very important step of how to establish your company in a free zone in Colombia and the requirements to start, is necessary to register your company in the selected free zone. This will include legal incorporation, specific permits to operate in the free zone and other legal requirements.
To that free zone operating company, you submit a request for qualification to the user operator and the clarifying documents are delivered.
Some of the documents to be submitted are:
- Certificate of existence and legal representation: issued by the Chamber of Commerce, it certifies that the company is legally constituted and lists the persons authorized to represent it.
- Copy of the articles of incorporation: establishes the legal formation, detailing information on shareholders, company structure and other legal aspects.
Free Trade Zone Documents:
- Lease or concession contract: it accredits the authorization to use the space in the free zone. This contract must be signed with the corresponding free zone administration.
- Certificate of location: provided by the free zone, this certificate confirms the exact location of your company within the free zone.
Tax Documents:
- Registro Único Tributario (RUT): This is a fundamental tax document. You must obtain the RUT of your company, indicating the economic activity and tax information. It is vital in how to establish your company in a free trade zone in Colombia and the requirements to start your business.
- Tax Clearance Certificate: Issued by the National Tax and Customs Directorate (DIAN), this certificate verifies that the company has no outstanding tax debts.
- Technical and Environmental Compliance Certificates: Depending on the nature of your business, you may need certificates that demonstrate compliance with specific technical and environmental standards.
- Tort Liability Policy: Some free zones may require an insurance policy covering civil liabilities.
Customs and logistic formalities
Another requirement to start after registering the organization, your company needs to move efficiently in the customs and logistics environment. You must be clear about the customs procedures necessary to import and export goods, as well as strategies to optimize inventory management and the supply chain.
Strategies to maximize resources
Tax and financial benefits are often the main attraction of free zones. Planning is one of the requirements to start and be likely to enjoy the different benefits that free zones provide, ranging from tax reduction to reinvestment of profits.
It is necessary to plan specific strategies and to study how to make an effective financial management in a free trade zone.
Developing an ideal team
It is always important to take into account the human capital that is going to be organized, this is fundamental. For that it is good to know the specific labor regulations and tactics to promote a positive work environment, staff training and talent retention.
Environmental commitment and sustainability
In the era of environmental responsibility, your company must stand out in terms of sustainability. There too, it is important in terms of requirements to start understanding environmental regulations in a free trade zone, implement sustainable practices and, at the same time, you will be able to enhance your reputation as an entity committed to caring for the environment.
Establishing your company in a free trade zone in Colombia is a process in which entrepreneurs require advice and support, but the results were rewarding. With this detailed guide, you will be equipped with the knowledge necessary to make informed decisions and forge your path to business success in this unique environment.
Start a new business universe full of achievements and constant growth! In Zona Franca de Occidente we advise and accompany you so you can establish yourself in the free zone and enjoy multiple benefits. Talk to us to learn about the process in a personalized way.
