Published legislation and draft legislation - Colombia

Recently incorporated companies

Bill 169-2017 Chamber // Bill 142-2017 Senate

The Bill 169-2017 Chamber promotes financial inclusion for recently created companies, encourages entrepreneurship and simplifies the paperwork involved in incorporating a firm in Colombia.

The draft text makes it obligatory for financial institutions to design or adapt credit risk assessment policies and methodologies to include this type of company, that are legally incorporated firms that have been issuing invoices for between 1 and 84 months.

It also provides that, during public contract processes, the financial capacity of these types of firms must be assessed on an individual basis.

Innovative start-ups

The Colombian government wants specifically to promote the development of start-up companies, by establishing a regulatory framework for crowdfunding models by creating incentives for these types of institutions. The aim is also to encourage job creation and an increase in competitiveness and wealth creation.

Thus, Bill 142-2017 Senate complements Bill 169-2017 Chamber, by:

  • Creating the regulatory framework so that the private equity and venture capital industry can develop in Colombia
  • Mobilizing financial capital towards social start-ups
  • Creating incentives for private-sector investment in these companies

It also provides regulatory protection for the creation of private equity and venture capital funds and social enterprise funds, defined as group investment entities with the purpose of financing companies with growth potential.

 

Continue reading the magazine nº 13