The SAS: Colombia's Equivalent to an LLC
- Juan Valdez
- Apr 18
- 4 min read
Updated: May 10
Introduction, The SAS: Colombia's Equivalent to an LLC
When foreign investors, especially from the United States, explore opportunities in Colombia, one of the most common questions is: What is the LLC equivalent in Colombia? With increasing interest in regions like Jericó along La Ruta del Suroeste in Antioquia, understanding the local legal structures is essential to making strategic business and real estate decisions. At Jericó Colombia Real Estate, our mission is to deliver the hottest properties and expert investment guidance, backed by specialized teams and a forward-thinking approach. The SAS: Colombia's Equivalent to an LLC
Establishing a legal business structure is crucial for tax planning, liability management, and operational flexibility. Fortunately, Colombia provides a modern, accessible, and investor-friendly model that mirrors the US LLC in many aspects.
Understanding Business Structures in Colombia
Before diving into the Colombian equivalent of an LLC, it’s helpful to understand the broad categories of business entities in Colombia. There are various corporate structures, including:
Sociedad Anónima (SA)
Sociedad Colectiva
Sociedad en Comandita Simple (SCS)
Sociedad de Responsabilidad Limitada (SRL or Ltda.)
Sociedad por Acciones Simplificada (SAS)
Among these, the Sociedad por Acciones Simplificada (SAS) has emerged as the most flexible and commonly used structure for both local and foreign investors.
The SAS (Simplified Stock Company) was introduced in 2008 and has since become the preferred structure for entrepreneurs, foreign investors, and real estate developers. It is designed to offer the liability protection, operational simplicity, and structural flexibility that closely aligns with the United States' LLC model.
Key Features of the SAS:
Limited Liability: Shareholders are only liable up to the amount of their capital contribution.
Single or Multiple Shareholders: A SAS can be formed by a single individual or multiple parties.
No Minimum Capital Requirement: Flexibility in setting the capital structure.
Operational Autonomy: The bylaws of the SAS can define governance, decision-making, and management roles.
Tax Identity: The SAS is treated as a separate legal and tax entity.
This corporate form is ideal for those investing in real estate in places like Jericó, where a business-friendly climate and scenic beauty align perfectly with strategic investment.
Key Advantages of Forming an SAS in Colombia
Forming an SAS provides multiple benefits, especially for international buyers and real estate professionals:
Simplicity in Formation: The process is streamlined and can be completed relatively quickly.
Privacy and Control: The structure offers greater confidentiality regarding ownership.
Management Flexibility: Shareholders can choose how the company is managed.
Access to Credit and Banking: A formal structure enables easier access to credit and commercial bank accounts.
Foreign Investment Registration: Enables legal currency exchange and repatriation of profits.
Adaptable for Real Estate Investment: Ideal for acquiring, managing, and selling property in Colombia.
Legal Requirements and Process to Establish an SAS
Creating an SAS involves several legal steps, many of which our expert partners at Jericó Colombia Real Estate can assist with:
Drafting the Bylaws: Tailored to the company’s needs, including capital, governance, and responsibilities.
Registration with the Chamber of Commerce: This formalizes the entity.
Obtaining a NIT (Tax ID) from DIAN: Necessary for tax compliance.
Opening a Corporate Bank Account: Helps manage operations and receive investments.
Registering Foreign Investment (if applicable): Mandatory if capital is coming from outside Colombia.
SAS vs. Other Corporate Entities in Colombia
Here is how the SAS compares to other business forms:
SAS vs. SRL: SAS offers more flexibility in governance and allows for a single shareholder.
SAS vs. SA: Less complex structure, fewer regulatory requirements, and more suited for SMEs.
SAS vs. SCS: SCS is more restrictive and better for traditional partnerships.
The SAS is uniquely equipped for modern business operations, especially for real estate purchases in regions like Jericó and throughout La Ruta del Suroeste.
Real Estate Investment through an SAS
Whether you’re purchasing a boutique hotel, eco-lodge, or residential property, forming an SAS provides a shield of liability and a practical framework for managing your assets in Colombia.
Through your SAS, you can:
Hold real estate legally in Colombia
Lease or sell properties as a corporate entity
Hire staff and contractors for property management
Benefit from potential tax advantages
This makes the SAS a strategic option for foreign investors aiming to buy into the vibrant real estate market of Jericó and the greater Antioquia region.
Conclusion
For foreign investors, especially those from the United States, the SAS represents the closest equivalent to an LLC in Colombia. It provides the legal foundation and flexibility needed to invest confidently in Colombia’s expanding real estate market. With the breathtaking landscape of Jericó, its position along La Ruta del Suroeste, and a surge in investor interest, now is the perfect time to take advantage of this structure.
At Jericó Colombia Real Estate, our specialized teams offer not only the hottest properties in Jericó but also expert advice and outsourced services to help your business thrive.
FAQs
1. Can foreigners own an SAS in Colombia?
Yes. Foreign individuals and legal entities can own 100% of an SAS in Colombia without requiring a Colombian partner.
2. Do I need to live in Colombia to open an SAS?
No. You do not need to reside in Colombia to create an SAS. A legal representative with Colombian residency is required, which we can help you arrange.
3. What is the minimum capital required to start an SAS?
There is no minimum capital requirement. You can determine the initial capital based on the company's needs.
4. Is an SAS suitable for real estate investments?
Absolutely. SAS is often used to hold real estate because of the liability protection and ease of management.
5. How long does it take to form an SAS in Colombia?
Typically, it can be completed in 2 to 4 weeks, depending on documentation and registrations.
6. Can an SAS buy property in Jericó, Antioquia?
Yes. An SAS can legally acquire property in any part of Colombia, including Jericó.
7. Does the SAS need to pay taxes?
Yes. SAS entities are subject to corporate income tax and other applicable local taxes.
8. Can profits from my SAS be sent to the US?
Yes, as long as the foreign investment was properly registered, repatriation is legal and straightforward.
For tailored guidance on forming your SAS and securing prime real estate in Jericó, trust our team at Jericó Colombia Real Estate to help you move forward with confidence and clarity.