A Sociedad de Responsabilidad Limitada (Ltda) in Colombia is a popular business structure that provides limited liability protection to its shareholders. This type of company is commonly used by small and medium-sized enterprises due to its flexibility and ease of formation.

There is no minimum capital requirement for forming an Ltda in Colombia, making it accessible for businesses with varying levels of initial capital. The incorporation process involves several steps:

The company's articles of incorporation must be prepared, detailing the company's objectives, share structure, management, and other essential information. These articles must be signed by all shareholders and submitted to the local chamber of commerce for registration.

Once registered, the company must obtain a tax identification number (NIT) from the National Tax and Customs Directorate (DIAN) for tax purposes. The company must also register with local and national tax authorities and comply with any industry-specific regulations.

An Ltda in Colombia requires at least one director and one shareholder. The directors must be individuals and can be either Colombian nationals or foreigners. The shareholders can be individuals or legal entities.

The company must prepare and file annual financial statements with the relevant authorities. Regular corporate maintenance, including holding annual meetings and keeping accurate records, is mandatory to ensure compliance with Colombian regulations.