Invierta en Colombia - Trabajo, Compromiso e Ingenio

Investment Registry

Foreign investment is considered to be any capital investment, be it direct or as part of a portfolio, made from abroad in the Colombian territory, including Colombian Free-Trade Zones, by persons who do not reside in Colombia.

Colombian law provides for two types of foreign investment: direct and portfolio.

1. Direct foreing investment

This type of investment is made:

• In the acquisition of equity participations, shares, corporate interest, mandatory convertible bonds or any representative interest in a company´s capital.
• In the acquisition of rights or interests in trust agreements celebrated with trust companies subject to inspection and supervision of the Colombia´s Superintendencia Financiera whose purpose does not become a portfolio investment made in securities listed on the National Register of Securities and Issuers RNVE, holdings in collective portfolio, as well as securities listed on the trading systems from abroad.
• The acquisition of real estate, investment in real estate securitizations or investment in real estate funds.
• The contributions made by the investor through acts or contracts, such as partnerships, concession, management services, license, or those involving technology transfer, this does not represent a stake in a company and to generate investment income for owner's profits depend on the company.
• Additional investment in the assigned capital of the foreign company branch.
• The acquisition of shares in private equity funds according to Title I of Book, Part III of Decree 2555 of 2010.

2.  Portfolio investment

This type of investment is made trough foreign capital investment funds shares, mandatory convertible bonds, and other securities registered in public securities market.

These funds are defined as patrimonies organized under any form (mercantile trust agreements, fiduciary trust, custody agreements or similar) in Colombia or abroad, with resources provided by one or more entities, individuals, or legal persons, for the purpose of making investments in public securities market. The acquisition of shares trough this funds, is subject to the regulations governing public tenders for local investors, without prejudice to the regulation applicable to certain types of investment.

3.  Foreing investment registration

All foreign investment, regardless of their type of method, must register with the Central Bank of Colombia as a necessary condition for the foreign investor to be able to exercise the exchange rights conferred by law.

This registration includes:

• Refer abroad net profits that the investment periodically generates.
• Reinvest the profits or retain in the surplus the utility that does not have drawing rights.
• Capitalize the amounts with drawing rights, product of the investment obligations.
• To send abroad the amounts received of disposition of the investment in the country or the amounts of the liquidation of the company or portfolio, or the amount received after their capital reduction.

4. Foreing exchange market

The foreign exchange market is constituted by currencies which are voluntary or compulsory channeled or negotiated thought foreign change market intermediaries or current compensation accounts.

The following exchange transactions must necessarily be channeled through the foreign exchange market:

• Importation and exportation of goods.
• Foreign debts operations conducted by Colombian residents, as well as financial costs inherent in the same.
• Foreign capital investment in the country, as well as returns associated with the same.
• Colombian capital investments abroad, as well as returns associated with the same.
• Financial investments in securities issued abroad, or investments in assets located abroad, as well as returns associated with the same, except when investment are made with currencies coming from operations not required to be channeled through the exchange market.
• Bonds and guarantees in foreign currency.
• Derivative transactions.

To find more forms of investment registration you can also visit the website of E-Regulations.

Download here:

Foreign Investment Regime.pdf  68 Kb