Doing business in Colombia? Start right, in English.
Setting up a company, hiring your first employee or running payroll in Colombia comes with rules that are very different from home. We guide foreigners and investors through every step, in English, so you can focus on your business.
- ✓ English-speaking support
- ✓ Company setup to monthly payroll
- ✓ Based in Medellín, serving all of Colombia
Choose where you are in your journey
Whether you are just arriving or already operating, we have a package that fits.
Landing in Colombia
Your first steps in Colombia, from incorporation to your first hire.
- Company setup (SAS) with our certified accountant
- Tax registration (RUT) and guidance on opening a bank account
- Foreign investment registration with the Banco de la República
- Registration as an employer with social security
- Your first employment contract under Colombian law
- Payroll and PILA set up from day one
Hiring in Colombia
For foreign-owned companies that already operate in Colombia and need an HR department.
- Employment contracts and internal work rules
- Monthly payroll, PILA and electronic payroll
- Mandatory benefits and final settlements
- Recruitment and onboarding
- Labor compliance and HR policies
- Accounting and taxes with our certified accountant
Household staff for expats
For foreigners who employ a housekeeper, nanny or driver at home.
- Written contract as required by law
- Social security enrollment and monthly PILA
- Service bonus, severance and vacation
- Final settlement when employment ends
What every foreign employer should know
Colombian labor law is protective of employees. These are the basics we explain to every client before the first hire.
Contracts
Employment contracts can be fixed-term, indefinite-term or for a specific project. We recommend always putting them in writing.
- Fixed-term, indefinite-term and project-based contracts
- Probation period of up to two months, agreed in writing
- Salary, working hours, duties and place of work clearly defined
Mandatory benefits
On top of salary, Colombian employees are entitled to benefits that the employer must pay on specific dates.
- Service bonus (prima): 30 days of salary per year, paid in June and December
- Severance (cesantías): one month of salary per year, deposited in a fund
- 12% annual interest on severance
- 15 working days of paid vacation per year
- Transport allowance and work wear for lower salaries
Social security
Every employee must be enrolled from day one, and contributions are paid every month through the PILA return.
- Health insurance (EPS) and pension fund
- Occupational risk insurance (ARL)
- Family compensation fund
- Monthly contributions through the PILA return
Working hours
Colombia is gradually reducing the work week and increasing surcharges.
- Maximum of 42 hours per week from July 15, 2026
- Night work starts at 7:00 p.m.
- Sunday and holiday work paid with a 90% surcharge from July 2026, rising to 100% in July 2027
- Overtime is limited and paid with surcharges
Contractor vs. employee
In Colombia, reality prevails over the name of the contract. If a contractor works under your direction, with a schedule and subordination, the relationship can be considered employment.
- Labor authorities and judges look at how the work is actually done
- Misclassified contractors can claim benefits and social security
- We help you choose the right type of contract from the start
Ending employment
Terminating an employment contract has clear rules. Dismissal without just cause requires compensation set by law.
- Final settlement of salary, benefits and vacation
- Compensation for dismissal without just cause, depending on the contract
- Due process for dismissals with just cause
- Late final payments can trigger daily penalties
General guidance based on Colombian labor law in force. Each case is reviewed individually.
From the first call to your monthly payroll
- Welcome callA relaxed conversation in English to understand your plans.
- ProposalA clear scope and fee for your situation.
- SetupCompany, registrations and contracts, step by step.
- First hireContract, enrollment and onboarding of your first employee.
- Monthly operationPayroll, PILA and compliance, every month.
Two people, one point of contact
Dutch entrepreneur based in Medellín since 2012, with a long track record in business development across Europe and Latin America. Your first point of contact, in English.
LinkedIn ↗
Business Administrator with an MBA and more than 11 years in HR and social security. She and her team run your payroll, compliance and HR operation.
LinkedIn ↗Questions foreigners ask us most
Can a foreigner own 100% of a company in Colombia?
Yes. Foreigners can own 100% of a Colombian company. The most common structure is the SAS (simplified stock company), which can have a single shareholder.
Do I need a Colombian company to hire employees?
To hire employees in Colombia you need to be registered as an employer. Most foreign businesses do this through a local company; households can hire domestic staff directly as individuals.
Can I hire employees if I only have a passport, or do I need a cédula de extranjería?
When you hire through your Colombian company, the company is the employer, identified with its own tax number (NIT). If you hire household staff as an individual, Colombian rules accept the cédula de extranjería or the passport as identification, depending on your immigration status. We review your situation and handle the registrations.
Can I hire a foreigner to work for me in Colombia?
Yes, as long as the person holds a document that allows them to work, such as a visa that permits employment or, for Venezuelan nationals, the PPT. Tourists cannot work. The employer must also report the start and end of the employment to Migración Colombia through the SIRE platform within 15 calendar days.
As a foreign freelancer, can I enroll in a health insurer (EPS) with my passport?
If you earn income in Colombia, you can enroll in social security as an independent contributor. Health regulations (Decree 780 of 2016) accept the cédula de extranjería or the passport, depending on your immigration status. If your visa is valid for more than three months, you must obtain your cédula de extranjería and use it. We guide you through the enrollment.
Do foreign employees have the same rights as Colombian employees?
Yes. Foreign employees in Colombia have the same labor rights and benefits as Colombian employees: salary, social security, service bonus, severance, vacation and protection against unfair dismissal.
Can you help me with my visa?
Yes, if you need it. Visas are issued by the Colombian Ministry of Foreign Affairs, and we guide you through the requirements and coordinate the process together with the rest of your setup, so everything is aligned from the start.
Can I hire people as contractors instead of employees?
Only when the work is truly independent. If the person follows your schedule and instructions, Colombian law may treat the relationship as employment, with all its obligations.
What are the main employer costs besides salary?
Social security contributions, the service bonus (prima), severance and its interest, vacation and, for lower salaries, transport allowance and work wear. We give you a full cost estimate before your first hire.
Do you only work in Medellín?
We are based in Medellín and serve clients across Colombia online, in English and Spanish.
Ready to start your business in Colombia?
Book a welcome call and we will map out your first steps together.
Book a welcome call