Selecting the region in where we want to focus the investment is one of the most important steps of that process. That’s the reason we have to explore the possibilities that allows our business to develop in the chosen sector.
Recently a survey done to more than 220 foreign business which operates in Colombia, resulted in 66% of the companies stating that they keep thinking in Colombia as an investment destination.
Despite the current situation we live in, there is stability in the economy, which, along with the tools and incentives that currently facilitates investment, has managed to maintain interest in Colombia as an investment destionation.
Some companies had to modified its work style, implementing new business lines and adapting to using online channels to keep the growing pace they had until 2020. It should be noted that in that year, more than 190 business projects arrived for US$ 9.078 millions, evidencing the interest in developing business in the country.
There is an increment in online selling activies and restaurants working with delivery, which has generated new business like the dark kitchen model. This business model operates delivering an intermediary site to cook the dishes, increasing the delivery range of the restaurants. The pandemy accelerated the technology adoption in our everyday routine fomenting the birth of new business models.
Sectors vary, from subsidiaries of big software developing companies, through BPO companies and travel agencies has decided to operate in the country. The last ones has taken into account the tourism reactivation and the growth it will mean to the economy.
The main advantages of Colombia as an investment destination:
-Geographic localization: The country’s location provide lots of advantages; in case the investment is done to perform foreign trade, there is an easy access to global market. Thanks to its Pacific Ocean seaside and the Caribbean sea. This also means an advantage to the agro-industry sector in the region.
-Easiness for remote companies: One of the sectors that has had a high rate of investment entry in Colombia are the BPO, contact centers, software development factories, along with other type of businesses that can be performed remotely.
The increase in remote working, lot of companies has decide to open subsidiaries in different countries with high rate of proffesionals in fields like programming.
The development of technologic infraestrure of fiber optic, allows to have an estable conectivity, being the second country in the region with the best conectivity services. This factors facilitates a lot the remote operations.
-Sectors and priority zones: Colombia accepts investors from almost every sector and industries without requiring previous authorization, more than registering at the monetary authority. Nevertheless, investors interested in insurance, mining, finances and hydrocarbon industry will need the corresponding authorizations.
Something to bear in mind are the special benefits for stablishing in the denominated “free trade zones”; these are zones specially intended to exportation economy, to priority sectores or that qualify in determined programs. There are also the special social-economic zones, in which the priority is to generate employment; among them are te Guajira, Arauca and Santander’s North departments.
Facing the current situation challenges, is very important to choose correctly where to invest. Considering the possitive aspects and the possibilities that brings the country that will bring you closer to success.
Direct foreign investment participating sectors.
Previously, the direct foreign investment participation had a higher percentage in the mining and oil sectors. This can be verified in the reports from the Ministry of Comerce, Industry and Tourism.
Between years 2018, 2019 and 2020, the investment in sectors different from oil and mining has been growing, having a total participation percentage of 24,8%, 33,8% and 42,2% en each year respectively. This demonstrates the factibility of investment in a wide amount of sectors. It is also evidenced that the foreign portfolio investment was positive in the year 2020, in US$ 693 millions.
The development of stable business is possible with an efficient planification, knowlegde of the sector, the correct localization and a lot of discipline.
In matters of corporate and labor law, you will always have an ally in us; we will advise you to take the most profitable desicions to stablish your business. You can contact us through this link.
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