Incorporating your own company within the national territory is extremely important for the growth of your venture, as it will provide various advantages, both operational and financial, as well as market recognition.
In this regard, the incorporation, formation, and formalization of the company can be carried out keeping in mind the following five fundamental keys:
- The first step to incorporate a company is to determine what type of company is intended to be incorporated. Therefore, it is suggested to evaluate the various possibilities available, considering the benefits, disadvantages, obligations, and responsibilities that each type of company entails.
Currently in Colombia, most companies are incorporated as Corporations (Sociedad Anónima) or Simplified Stock Companies (Sociedad por Acciones Simplificadas), with the latter being the most suitable and recommended, since unlike other corporate types, it offers ease of incorporation and greater benefits for its shareholders.
- Once the type of company to be incorporated has been identified, the next step is to create its corporate name. Therefore, the availability of the name must be verified through the Single Business Registry website, to ensure that the intended name does not coincide with an already existing company.
Additionally, on this point, it is relevant to mention that the company name may be registered as a distinctive sign (trademark) according to the product or service to be offered, becoming an intangible asset for the company. However, the company name does not always correspond to the company's trademark.
- The number of shareholders or partners that will make up the company must be established, indicating the number of shares corresponding to each one and the nominal value of the shares; likewise, the initial capital of the company must be stated, determining the subscribed capital (which corresponds to the capital committed to be paid), authorized capital (being the maximum amount that can be subscribed and paid in the company), and paid-in capital (which is that actually paid at the time of incorporation).
- After setting the aforementioned information, the development of the company's bylaws is implemented, being the appropriate private document to regulate, control, and understand the company from a legal perspective.
The company's bylaws will indicate the relevant information for future decision-making of the company, such as the names of the shareholders or partners, their contributions, name of the legal representative, members of the board of directors or administrative board if applicable, the corporate purpose, scope and responsibilities, and other parameters for decision-making.
- As the last key to keep in mind at the time of incorporation, it is to advise its incorporation and legal process with the help of an expert who can provide advice, support, and representation during the process.
Finally, keeping in mind the relevant aspects for the incorporation of the company, the company is formalized through a public deed or private document depending on the corporate structure, and other formalities and procedures that must be implemented for its legalization.