How to create a nonprofit in Colombia: step-by-step guide

The constituent assembly is the formal act in which the founders approve the bylaws and elect the governing bodies. The minutes must record: date, place, full names and identification of attendees, approval of bylaws, election of the board of directors, and appointment of the legal representative.

Step 3: Register with the Chamber of Commerce

Within 10 business days following incorporation, registration must be completed in the ESAL registry of the corresponding Chamber of Commerce. The required documents are:

1. Articles of incorporation signed by the assembly president and secretary
2. Copy of the approved bylaws
3. Completed RUES form (Single Business and Social Registry)
4. Copy of the legal representative's identification document

Step 4: Obtain the RUT and NIT

Once registered with the Chamber of Commerce, the ESAL must process its Tax Identification Registry (RUT) with DIAN (the Colombian tax authority). This step is essential for invoicing, contracting, and operating legally. The NIT (Tax Identification Number) will also be obtained to identify the entity before tax authorities.

Step 5: Special tax regime

ESALs can apply to belong to the Special Tax Regime (RTE), which grants access to significant tax benefits, including an income tax rate of 20% on net income (compared to 35% under the ordinary regime) and the possibility for donations to be tax-deductible for donors.

To access the RTE, the entity must register in DIAN's web application and comply with annual update requirements, including the publication of financial statements and the management report.

Common mistakes when creating an ESAL

• Not clearly defining the social purpose, which generates inspection and surveillance problems
• Failing to register within the legal 10-day deadline
• Not applying for Special Tax Regime qualification
• Generic bylaws copied from the internet without adaptation to the actual purpose
• Not establishing clear corporate governance mechanisms

How can COLCES help?

At COLCES, we offer specialized legal advisory for creating ESALs. Our team accompanies you from drafting bylaws to registration with the Chamber of Commerce and DIAN. Additionally, as a member of our network, you access continuous training, sector representation, and a community of more than 500 organizations committed to social change.