Indeed.  In Colombia, foreign investment is complete allowed, without any limitation.  Therefore, there is no requirement to have a Colombian shareholder of a S.A.S..

The Legal Representative can be either a Colombian National or a foreign person.  Further, the legal representative shall not be physically located in Colombia.

However, from the practical perspective, it is advisable to have a Legal Representative to be physically located in Colombia, in order to deal with local and private authorities.

Please, be informed that tax returns of the S.A.S. shall be filed by using the e-signature of the Legal Representative. (Note: e-signature are only provided by the National Taxing Authority, once said person has registered himself/herself before the National Taxing Authority).

The Legal Representative shall be deemed jointly and severally liable for the S.A.S.’ acts, contracts and tax returns, as he/she is regarded as administrator/manager of the company.

After having incorporated the company and obtaining  the Tax Identification Number, the company must be registered before the Labor Risk Administrator (ARL).

Further, the company must be registered before a Family Compensation Fund.

After having complete these registration process, the company will be able to hire employees, and register them before the Health Promoting Entity (EPS) for public health coverage.  In this case, each employee has the right to choose their desired health entity, to which the company has to submit the required form.

Additionally, the employees must be registered before a pension fund, which is freely chosen by the employees.

It is important to determine the type of contractual relationship, namely, (i) on site work, (ii) remote work, (iii) hybrid work, (iv) management and trust employee and (v) type of salary, among others.

• Salary is the remuneration or payment that the worker receives in the employment contract as consideration for his services, and which is paid in monthly or biweekly periods. The salary must be paid for equal and overdue periods, in legal currency. The payment period for salaries cannot be longer than one month.
• Ordinary Salary: It is the basis of a worker’s remuneration and represents the fixed remuneration for their work (Up to 10 Current Legal Minimum Monthly Wages (“SMLMV”). In addition, social benefits such as bonuses, severance pay, interest on severance and vacations must be recognized.
• Integral Salary: Modality that includes both the ordinary salary and a benefit factor that compensates for social benefits. The integral salary must be equal to or greater than 10 SMLMV, plus a benefit factor that cannot be less than 30% of that amount.

Note: In labor matters, all months are considered as equal periods of 30 days and therefore the year of 360, therefore, the salary must be paid for equal periods which is the measure of 30 days for all months regardless of the calendar number of these.

• Mid-year bonus: It is equivalent to half a monthly salary proportional to what was worked in the first semester of each year, which must be paid no later than June 30 of the respective year. This concept is not applicable to employment contracts under the full salary modality.
• End-of-year bonus: It is equivalent to half a monthly salary proportional to what is worked in the second semester of each year, which must be paid no later than December 20 of the respective year. This concept is not applicable to employment contracts under the full salary modality.
• Redundancy payment: Payment of a salary per year or proportional salary made by the employer in favor of the employee and that constitutes a savings to a severance fund. Payment is due no later than February 14 of each year. This concept is not applicable to employment contracts under the full salary modality.
• Interest on redundancy payment: Payment that employers must make to their workers each year, equivalent to 12% of the total value of the severance pay or proportional to a fraction of a year. This concept is not applicable to employment contracts under the modality of integral salary.
• Transportation subsidy: Monthly payment made to workers who earn up to two legal monthly minimum wages in force and who must use the public transportation service to get to their place of work. (currently amounts to COP$200,000, approximately US$ 50 approx.). This concept is not applicable to employment contracts under the modality of integral salary.
• Endowments: Mandatory social benefit that employers must provide to their workers who earn up to two legal monthly minimum wages in force. It consists of the delivery of a pair of shoes and a change of work clothes, three times a year, for the employee to use in the performance of their duties. This concept is not applicable to employment contracts under the modality of integral salary.
• Vacations-Holidays: 15 working days for each year worked or proportional per fraction of a year. However, the employer may grant more vacation days as an after-work benefit.

• Currently, the maximum weekly labour shift corresponds to 44 hours.  As of July 15th, 2026, the maximum weekly labor shift will be 42 hours.
• The maximum labour shift may be distributed between the employee and the employer during the 5 to 6 days a week, guaranteeing the day of rest.
• Generally, the maximum labour shift per day is 8 hours.
• However, as an exception, the employer and employee may agree that the maximum labor shift per day is carried out in flexible daily working hours distributed over a maximum of 6 days a week, having a minimum of 4 continuous hours and a maximum of up to 9 hours a day without any surcharge for additional work, provided that it does not exceed the maximum working day legally established.
• Currently, the daytime shift begins at 6:00 a.m. and ends at 9:00 p.m. and the nighttime shift begins at 9:00 p.m. and ends at 6:00 a.m. However, as of December 25, 2025, the daytime shift will begin at 6:00 a.m. and end at 7:00 p.m. and the nighttime shift will be from 7:00 p.m. to 6:00 a.m.

• The mandatory or “Sunday” day of rest can be agreed between the company and the employee so that it is any day of the week, without necessarily coinciding with Sunday. If the parties do not agree, it will be presumed that the mandatory day of rest is Sunday.
• Work on mandatory rest days, or holidays, is remunerated with a surcharge of (i) 80%, (ii) 90% as of July 1st, 2026, and (iii) 100% as of July 1st, 2027, settled on the salary.  The employer can adopt the 100% surcharge before July 1st, 2026.
• Work on a day of rest will be occasional when working up to 2 days of mandatory rest, during the calendar month. In this case, the employer will only pay the surcharge.
• Work on a day of rest will be usual when 3 or more days of mandatory rest are worked during the calendar month. In this case, the employer will have to (i) pay the surcharge and (ii) grant a paid day of rest for each day of work on a day of rest in the following week.
• Colombia has approximately 15 to 18 public holidays per year.

• Daytime overtime: Surcharge of 25% hour worked.
• Night overtime: Surcharge of 35% hour worked.
• Surcharge for work on mandatory or Sunday rest days and/or holidays:

100% applied on each hour worked. It can be implemented gradually like this:

• From July 1st, 2025: 80%.
  As of July 1st, 2026: 90%.
  From July 1st, 2027: 100%.

Note: The employer will be able to accept the 100% surcharge as of June 25, 2025.

• Daytime overtime: Surcharge of 25% hour worked.
• Night overtime: Surcharge of 35% hour worked.
• Surcharge for work on mandatory or Sunday rest days and/or holidays:

100% applied on each hour worked. It can be implemented gradually like this:

• From July 1st, 2025: 80%.
  As of July 1st, 2026: 90%.
  From July 1st, 2027: 100%.

Note: The employer will be able to accept the 100% surcharge as of June 25, 2025.

• Surcharge of the extra daytime lora on mandatory rest day/public holiday: 80%/90%/100% + 25% hour worked.
• Surcharge for night overtime mandatory rest day/holiday: 80%/90%/100% + 35% hour worked.
• Overtime cannot exceed 2 hours per day or 12 hours per week.
• Prior authorization or permission from the Ministry of Labor is not required to work overtime.
• “Direction, trust and management” positions are not eligible for overtime or surcharges, except for the night shift surcharge.

• Workers have the right not to be contacted for work matters outside of their working hours, vacations or breaks.

• Performance of temporary official positions of compulsory acceptance.
• Serious case of duly proven domestic calamity.

Note: A serious case of calamity is understood as any personal or family event up to the third degree of consanguinity, second affinity or first civil degree, fortuitous event or force majeure whose seriousness affects the normal development of the worker’s activities.

• To hold union committees, provided that due notice is given, and that the number of absentees does not prejudice the normal functioning of the company.
• Attend emergency medical appointments or scheduled medical appointments with specialists when informed to the employer along with the prior certificate, including the diagnosis and treatment of endometriosis.
• Attend school obligations as an attendant in which the assistant is mandatory at the request of the educational center.
• Respond to judicial, administrative, and legal summonses.
• Maternity leave: All pregnant workers are entitled to 18 weeks of leave at the time of childbirth, paid with the salary earned at the time of starting their leave.
• Paternity leave: Paid leave of two weeks that benefits the worker who is a father contributing to the social security system, for the children born to the spouse or permanent partner.
• Shared Parental Leave: Allows employed fathers to distribute the last 6 weeks of maternity leave among themselves. The mother must enjoy at least the first 12 weeks after childbirth, and the remaining 6 weeks can be shared with the father, by mutual agreement.
• Flexible part-time parental leave: Allows employed fathers to agree with the company to exchange part of their maternity or paternity leave for a period of part-time work. This means they can work part-time and spend the other half of the time caring for the baby, extending the total length of leave.
• Bereavement leave: Period granted to the worker for 5 paid working days when any of the people who have the following types of relationship with the worker dies: (i) Spouse or permanent partner, (ii) Relative up to the second degree of consanguinity, (iii) Parents, children, grandparents, grandchildren, siblings, (iv) Relative up to the first degree of affinity – parents-in-law and stepchildren and (v) Relative up to the first civil degree – adopted child,  adoptive parents.
• Other licenses:
  • Performance of temporary official positions of compulsory acceptance
  • Serious case of duly proven domestic calamity. 

Note: Serious case of calamity understood as any personal, family event up to the third degree of consanguinity, second affinity or first civil, fortuitous event or force majeure whose seriousness affects the normal development of the worker’s activities.

• To hold union committees, provided that the employee gives due notice, and that the number of absentees does not prejudice the normal functioning of the company
• Attend emergency medical appointments or scheduled medical appointments with specialists when the employer is informed along with the prior certificate, including the diagnosis and treatment of endometriosis
• Attend school obligations as an attendee in which the assistant is mandatory at the request of the educational center
• Respond to judicial, administrative, and legal summonses.

• 15 working days for each year worked or proportional per fraction of a year. However, the employer may grant more vacation days as an after-work benefit.

• General rule: Indefinite term contracts
• Exceptions:
  • Fixed-term contract:
    • Maximum term of four (4) years.
    • It must be in writing.
    • If it does not comply with the above conditions, it will be understood that it is an indefinite term contract from the date of its conclusion.
    • Nor it may be renewed indefinitely, however the parties may consider the following extensions:
    • Agreed extension:
    • Contract entered into for a term of less than one year, may be extended as many times as they deem appropriate.
    • But after the 4th extension it may not be renewed for a period of less than one year.
    • Automatic extension:
    • If, 30 days prior to the expiration of the agreed term or its extension, neither of the parties expresses its intention to terminate the contract, the contract will be understood to be renewed for a term equal to the one initially agreed or its extension, as the case may be.
    • The maximum limit of 4 years provided for may not be exceeded.
    • This rule will apply to contracts entered into for a term of less than one year, but in this case the fourth automatic extension will be for a period of one year.

• For indefinite-term contracts: 2 months.
• For fixed-term contracts: 20% of the term, not exceeding 2 months.
• For term contracts for the duration of work: 2 months.

• For indefinite term contracts:
  • Just cause: No notice period or with a period of 15 working days, depending on the cause of the termination.
  • No just cause: No notice period.
• Fixed-term contracts.
  • Automatic extension contracts: 30 days before the expiry of the agreed term or its extension, otherwise it will be understood to be automatically renewed.
  • For just cause: No notice period or with a period of 15 working days, depending on the cause of the termination.
  • Without just cause: No notice period.
  • Duration of the work: When the work is finished.

• Indefinite term:
  • 10 current legal monthly minimum wages (“SMLMV”): 30 days’ salary in the first year + 20 days’ salary in the following years (proportionally for each year).
  • + 10 SMLMV: 20 days’ salary for the first year + 15 days’ salary for the following years (proportionally for each year).
• Fixed Term: The value of the salary for the remaining time of the contract.
• Duration of Work:
  • Estimated wages remaining until completion of the job.
  • Payment may not be less than 15 business days.