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6 REASONS TO INVEST IN COLOMBIA

There are several reasons to invest in Colombia, this trend has been encouraged by practically all governments over the last 30 years, regardless of their political alignment or voter base, which partly explains the large influx of cash flows from abroad into the country.

Now, it is important to mention that this is perhaps the best historical moment to make this type of investment  and from our perspective as a Colombian law firm we want to highlight 6 reasons to invest in Colombia, as follows:
1. It is important to mention that since 2008, Colombia has a new and adequate norm for the reception of foreign investment, this is the norm 1258 of 2008, which creates the figure of the S.A.S., an entity that although it cannot be taken to the stock exchange, or become public, it can receive any number of shareholders, cover them with the idea of limited liability to the amount of their contribution and engage in any valid economic activity. The vast majority of companies in Colombia are linked to this type of company, given its great flexibility and practical utility.
2. The diversity of ways of hiring personnel, in our legislation there are several ways of hiring personnel, both labor or commercially, each with its advantages and disadvantages, but fortunately, both are widely developed and updated with international standards.
It is important to mention that the cost of labor in this country is extremely competitive in the international trade scenario. minimum wage in Colombia is $980,657 COP, $264.37 USD or $233.02 EU, including in this amount the value of a transportation allowance for the employee, now, there are some additional payments to be made in this hiring methodology which must be taken into account, making a generalization, we could talk about an additional 50% in extra salary payments, in any case we would still be in supremely competitive amounts compared to other countries; it should be said that in a commercial methodology there is not even a minimum amount for remuneration, nor so many additional payments.

In any case, it is important that this is handled with the support of lawyers who are experts in the handling of these contracts and their additional general conditions.

3. Application of international standards on intellectual property, in this country the guidelines established by the WIPO (Eng) or the WIPO (Eng) are used to a large extent, this allows basically the same rules of the game established in the world regarding the protection of the expression of ideas, whether through distinctive signs (trademarks), new creations (patents) or copyrights, to be complied with here.
4. Exchange rate favorability, for at least 20 years, the price has remained steadily depreciated against other international currencies, this is particularly true in the last year, where the peso has experienced a sharp depreciation for various reasons, among which should be noted the variability of oil prices, the pandemic and other similar issues, in any case, each U.S. dollar today costs $3,700 Colombian pesos and each euro today costs $4,200, so the possibility of accessing large financial opportunities or real market, is very much in sight.
5. Likewise, it is worth mentioning the new context generated by the peace agreements reached with the revolutionary group known as the FARC, an agreement that has allowed an important advance in the way in which the national government controls the totality of the country’s territory, lower levels of violence among other good things achieved by the agreement.
6. Finally, I would like to mention that the country’s market is at a very interesting stage in various fields, such as medical cannabis, a nascent industry that offers great investment possibilities and promises great returns, as well as all the value-added markets, using the large number of young people the country has, for example for the export of services, among others.
With the above, I hope to have clearly and completely addressed the main reasons to invest in Colombia, I trust that in the coming years this trend will continue to consolidate and that in this framework the formality of business comes from the hand of law firms like Cuadro Legal, who are experts in business law, able to channel resources to the country, create investment vehicles, support in all recruitment scenarios in terms of staff, customers and suppliers.
 
Author:
Santiago Pinzón Sosa

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