Requirements to Create a Foundation in Colombia: Registration, Step by step and MORE

This article will highlight which are the Requirements to Create a Foundation in Colombia which will be explained step by step below.

A foundation is the constitution of a patrimony assigned to the realization of a charitable, cultural and scientific work. In which the law of the country considers it legal in favor of or through persons determined by the exhibition of certain requirements and conditions.

In Colombia it is important that foundations exist, because it contributes its grain of sand to society. That is why, if you have a project in mind to build a foundation, we will present everything you need below.

Requirements to Create a Foundation in Colombia

For people to create their foundation, the first step is to be clear about the Requirements to Create a foundation in Colombia which are the following:

1. Representatives who want to create a foundation must be clear about the name that you will assign
2. When creating a foundation they must be clear about their objective to be addressed.
3. Determine the address of the co-founders, since most of the cases the foundations are created by more than one person.
4. Define which legal person will be in charge of the foundation.
5. Demonstrate the origin through the Heritage and how it will be constituted.
6. People who are going to build a foundation need to get the Tax Identification Number (NIT).

It is an obligation that when the foundation has been formed, present reports and the respective financial statements so that they have control of them.

It is important to note that to create a foundation they must have a Constitutive Act. This Document must have:

1. The name of the foundation
2. Name, surname, area where you live and the nationality of the people who make up the foundation.
3. In the case that they are legal persons, they must attach the act of the corporate purpose.
4. Document where the acceptance of the statutes stands out.
5. The place and date of where the assembly will be held where it should have their respective signatures.
6. Explain the patrimony to which you are going to manage.

It is important to explain who is the legal representative of the foundation and what are the functions that each person will fulfill.

For the creation of a foundation or organization, people will have to carry out through a public deed or private document accepted by the notary by the representative of the foundation.

How to Register a Foundation in Colombia?

In the previous point, it was explained what are the Requirements to create a Foundation in ColombiaNow, people who want to register a foundation or organization in Colombia must go to the Chamber of Commerce, La Dian or the Government. The steps are the following:

1. Have all the statutes
2. Process and register the Pre-RUT.
3. Fill the Form referring to the Single Business Registry and RUES.
4. Approval by means of the certain designated positions where the photocopy of each of the representatives and their professional cards must be added.

Once they have all this, it is recommended to the representatives that before registering they should find out that their corresponding name is available. These registration requirements serve only to award your foundation a legal person.

Important

For the construction of a foundation, it may be done through a public deed or private document through the Chamber of Commerce. To register the requirements are the following:

1. Photocopy of the deed or private document that has already been approved by the notary public.
2. Show the persons named in the positions of administration, legal representative, etc.
3. You must fill out the Single Tax Registry form that you include for processing in the Chamber, which can be request through DIAN.
4. The private document and a photocopy of the identity card are presented at DIAN.
5. Attach the document of the Single, Business and Social Registry (REUS) where it will have the signature of its respective legal representative.
6. Pay the amount of the registration fee.
7. At the time of establishing the registry, the legal representative must be present.

They must also register with the National Tax and Customs Directorate (DIAN), which must request the RUT there. And finally register with the government. If the foundation under construction is located in Bogotá, it must be registered in the District Address Inspection in the Mayor’s Office.

Step by step to create the Foundation

The steps to build a foundation are as follows:

1. People wanting to establish a foundation must search for affiliates.
2. Choose a name, identification and address regarding the representatives.
3. Choose which will be the legal entity.
4. Highlight what activity they are engaged in.
5. Select which is the heritage.
6. Process the amount of Tax identification NIT
7. Registration through DIAN.
8. Registration through the department or district office.
9. Authenticate donations.

After these steps you can proceed through the constitutive act that will lead to the creation of the organization.

Types of Foundations in Colombia

In Colombia, in order to establish a foundation, it is necessary to establish what type of organization is in order to differentiate them from the others.

1. The family foundation It is a private institution belonging to a family group with assets that proceed with respect to them. Family members contribute to the patrimony and it can also be done by the referent individuals of the governing body.
2. The independent functions They operate as a non-profit organization that has no participants or shareholders and contains its own board of directors. Also your income is from your own account.
3. The business foundations They stand out because they are private from their income from an institution or company and they are independent.
4. The community foundation refers to working to help citizens in a certain place. Its funds come through donors as well as individuals contribute to other non-profit institutions.

Benefits of Creating a Foundation in Colombia

1. The construction of a foundation in Colombia, leads to having a tax benefit. people who contribute in companies get an income tax discount of 25% of the amount donated.
2. It helps to meet the needs of the Colombian people.
3. Giving people who have low resources support in the things they need most.
4. The companies that help to donate to these foundations do so to have a better position where they establish strategies regarding Corporate Social Responsibility.
5. By starting with the obligations of your foundation, you will be able to form a work team that has generated a positive impact on the Colombian community.
6. Creating a foundation generates that people have a good image and reputation regarding the foundation.
7. In the creation of a foundation, the presence of a fiscal framework where it benefits the institution from reductions in taxes such as (VAT, Personal Income Tax, Property Tax, IAE, Urban Nature Value Increase Tax, among others)

Why create a Foundation?

It is very important to highlight the presence of foundations to help people provide needs that correspond to each individual.

The population is always evolving where more and more companies and foundations come together to benefit the most vulnerable sectors of society.

If your intention is to create a foundation, the presence of donations made by individuals or the financial sector will be highlighted.

Creating a foundation generates that people have a good image and reputation regarding the foundation and / or institution. Working from this generates help to civil society in the way to contribute reducing the income tax.

It is important to explain that in Colombia the population rates in which they serve through foundations are:

1. About a 44% of young people they are helped through foundations.
2. The childrens in primary age have approximately 40% who are helped.
3. To young adults it has a percentage of 39% that gives them help.
4. Preschoolers 28% where their needs are met.
5. Families have approximately one 17% that are benefited.
6. Women and girls 16%.
7. Extreme poverty 12%

To carry out these actions, you must have commitment and dedication to contribute and provide enough help to those people who need it most. That is why, if you are interested in creating a foundation, the Requirements to Create a foundation in Colombia They are important so that the procedure is correct and indicated.

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