Why Choose a SAS in Colombia? (2025 Edition)

If you’re thinking about starting a company in Colombia, the Simplified Joint Stock Company (SAS in Colombia) is, without a doubt, the most flexible and efficient legal structure available.

Created under Law 1258 of 2008, the SAS has become the preferred option for entrepreneurs, startups, and investors thanks to its streamlined incorporation process and operational advantages.

Key benefits of creating a SAS in Colombia 

1. Simplified incorporation

Forming a SAS is fast and cost-effective. It can be incorporated through a private document—no public deed required unless certain assets are involved. This simplification speeds up registration with the Chamber of Commerce.

2. Single-shareholder option

Unlike other business structures, a SAS can be formed by a single individual or legal entity. This makes it ideal for solo entrepreneurs looking to protect their assets without the complexity of a traditional corporation.

3. Limited liability

Shareholders are only liable up to the amount of their capital contributions. This protects personal assets, ensuring that the company’s debts or legal issues don’t affect your private finances.

4. Flexible capital contributions

A SAS allows capital contributions in the form of cash, assets, or services. Shareholders have up to two years to pay the subscribed shares, giving financial breathing room in the early stages.

5. Tailored corporate governance

There’s no legal requirement to have a board of directors or a statutory auditor—unless the company exceeds certain thresholds (e.g. assets or income over 3,000–5,000 minimum wages). This allows each business to design its governance structure based on its needs.

6. Customizable share classes

The bylaws of a SAS in Colombia can define various types of shares (e.g., preferred shares, non-voting shares, payment shares), allowing you to tailor shareholder rights and obligations based on investment level or role.

7. Streamlined decision-making

Decision-making is more agile compared to other company types. SAS shareholders can set flexible internal rules that make management easier and help the company adapt quickly to market changes.

8. Tax benefits

A SAS in Colombia can opt for the Simple Taxation Regime (RST), which consolidates multiple taxes into a single bimonthly payment, with only one annual tax return.

Additionally, if the company hires someone under 28 years old who’s in their first formal job, it can deduct up to 120% of their salary in its income tax return.

9. Easy transformation and dissolution

Transforming another type of company into a SAS in Colombia is simple, as long as all shareholders agree. Likewise, dissolving a SAS is less bureaucratic, offering flexibility throughout the company’s lifecycle.

Is a SAS in Colombia right for your business?

A SAS in Colombia is especially useful for:

– Startups and small businesses looking for flexibility and fewer administrative burdens.
– Foreign investors needing a fast, clear entry into the Colombian market.
– Family-owned companies seeking clear rules and easier succession planning.
– Solo entrepreneurs who want to limit liability and retain control.

That said, it’s always wise to evaluate your case with a legal and accounting advisor to choose the corporate structure that best fits your needs.

A SAS in Colombia combines simplicity, flexibility, and legal protection, making it a highly attractive option for various types of businesses in the country.

By choosing this structure, you can focus on growth and innovation—with the peace of mind that your legal foundation is solid.

Want to create your SAS in Colombia?

At Nexo Legal, we guide you through every step—from incorporation to operational formalization.
Contact us, and let’s make it happen.