How to Register a Sole Proprietorship (Persona Natural Comerciante / Empresa Unipersonal) in Colombia

Becoming a sole proprietor in Colombia is appealing because it allows you to start doing business under your own name or a trade name with relatively low legal complexity. As a persona natural, you avoid many of the fixed costs and formalities of a corporation.

However, depending on your income level, type of business, and location, there is bureaucracy and regulatory compliance: you will need to register with tax authorities (DIAN), possibly the Chamber of Commerce, keep records, and handle taxes, social security, etc.

The main benefits are flexibility, full control over your operations, simpler accounting, and lower start-up costs. The main challenges are unlimited liability, potential tax burden if income grows, and making sure you properly comply with local and national regulations.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Colombia?

In Colombia, a sole proprietorship generally corresponds to a “Persona Natural Comerciante” (Natural Person Merchant) or Empresa Unipersonal in cases where the natural person registers a legal business structure under their own name but may use a business name for operations.

Sometimes it’s just “trabajador independiente” when providing services without a formal commercial registration, but legally for commerce, you often need to be a persona natural comerciante. These terms all describe the same business model: one individual running and owning the business, responsible personally for obligations and risks.

How does a sole proprietorship (persona natural comerciante / empresa unipersonal) work in Colombia?

Here’s a quick overview of what running a business as a sole proprietor in Colombia actually looks like—from who you register with, to how you’re taxed, to the biggest pros and cons.

Persona natural vs Simplified Stock Company in Colombia

Here’s how being a persona natural / empresa unipersonal compares to other options like forming a S.A.S. (Simplified Stock Company) or other corporate forms:

Step-by-step guide: How to register a sole proprietorship in Colombia

Step 1: Check if you are eligible

You must be a natural person with legal capacity (i.e., of legal age or the requirements for minors doing commerce via legal guardians). Foreign nationals can also register, though they may need to show identity documents (passport, immigration status) and possibly other local IDs or residency, depending on activity. If you will be issuing invoices, doing commercial activity, or operating an establishment, you may need to be registered formally.

Step 2: Get your tax ID and register with DIAN (RUT)

Before you formally operate, register for the Registro Único Tributario (RUT) with DIAN (the national tax authority). This gives you your NIT (Número de Identificación Tributaria), identifies your tax responsibilities, and is needed for issuing invoices, paying taxes, etc.

Step 3: Register with your local Chamber of Commerce (Matrícula Mercantil)

If you carry out commercial activities, you need to matriculate (register) as a persona natural comerciante at the Chamber of Commerce for your city. This includes applying for a Matrícula Mercantil and optionally registering an “establecimiento de comercio” (business establishment) if you have a fixed place or storefront.

Step 4: Choose and register your business name or trade name if applicable

If you prefer a name different from your own legal name, you must check that the name is available (Chamber of Commerce can help), and register it. If your business is structured as Empresa Unipersonal, include “Empresa Unipersonal” or “E.U.” in the name.

Step 5: Gather required documents

You’ll typically need your identity document (cédula de ciudadanía for Colombians, or a valid legal document for foreigners), proof of address, a completed RUT form, forms for matrícula in Chamber of Commerce, possibly business establishment location information, and information about the type of activity (with corresponding CIIU code). If required, permits depending on your business sector (health, municipality, environment, etc.).

Step 6: Pay registration and license fees, and fulfill local obligations

You’ll pay fees for the registration with the Chamber of Commerce (Matrícula Mercantil) and for renewing that each year. Also, you may need a commercial license or municipal permits depending on your activity. After registration, you must keep your RUT data updated whenever any relevant detail change. You’ll also need to declare taxes yearly, maybe pay IVA if applicable, local industry and commerce tax, etc.

Step 7: Maintain compliance after registration

You must keep accounting or records of income and expenses (even if you’re not required to keep full double-entry accounting, you must keep receipts, etc.). Submit the annual income tax declaration as a persona natural if you meet thresholds. Handle contributions to social security if you have employees or certain obligations. Renew matrícula mercantil anually. Update RUT when anything changes (address, activity, responsibility).

Financial and tax obligations for sole proprietors in Colombia

As a sole proprietor, there are some tax obligations that you need to be aware of:

• Income tax (Renta para persona natural): You must determine whether you are obligated to declare income tax. This depends on whether you exceed certain thresholds (income, patrimony, consumption, bank movements, etc.). For example, for the 2024 taxable year, natural persons must declare if their gross income exceeds 1.400 UVT, or if their patrimony exceeds 4.500 UVT, or meet other flags like high consumption or banking movement.

• IVA (VAT): If you engage in activities that are subject to IVA, and meet thresholds or responsibilities (for example selling goods or certain services), you will need to register for IVA, charge it, collect it, and file IVA returns.

• Industry & Commerce Tax (Impuesto de Industria y Comercio, ICA): This is a municipal tax that applies if you run certain commercial or industrial activities in a given municipality. The rate depends on local rules.

• Local and municipal permits/licenses: Depending on business activity and location, you may need various municipal licenses.

• Record-keeping: Keep invoices, receipts, proof of expenses, bank statements, and support documents for deductions. DIAN can require you to have them in case of an audit or review.

• Annual filings: If obligated, file annual tax returns; possibly provisional or advance payments depending on your tax bracket (depending on local norms).

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FAQs

What is the minimum capital required to start as an autónomo/a?
None. You are not forming a company, so there’s no minimum share capital. Registration is administrative (AEAT + TGSS).

Do autónomos need to register for VAT?
If your activity is subject to VAT, yes—you’ll indicate this in Modelo 036/037 and then file Modelo 303 quarterly. Some activities are exempt; check AEAT’s VAT-rate pages for specifics.

How much are the standard monthly contributions?
They depend on the base tied to your forecast net income. The 2025 general rate is 31.40% of your base (e.g., base €1,000 ⇒ ~€314/month). New autónomos who qualify can apply the €80/month reduced rate for the first 12 months. Use Importass to simulate your case.

Can an autónomo/a hire employees?
Yes, but you must register as an employer and fulfill payroll, withholding, and Social Security obligations. (Process handled via AEAT/TGSS portals.)

How long does registration take?
With Cl@ve or a digital certificate, both the AEAT census filing and RETA enrolment can be completed online the same day, effective from the start date you indicate.

Can foreign nationals register as autónomos in Spain?

• EU/EEA/Swiss citizens: register for a NIE and, if staying >3 months, obtain the EU Registration Certificate (EX-18); then complete AEAT and TGSS steps.

• Non-EU citizens: you generally need the self-employment authorization (EX-07) first.

Do autónomos need a separate business bank account?
Not legally required, but strongly recommended to keep clean books and support AEAT’s record-keeping standards. AEAT accepts electronic books if you preserve the files.

What happens if I stop working as an autónomo/a?
You must file baja with TGSS (RETA) and AEAT (census). Both can be done online: Importass for Social Security and Modelo 036/037 for AEAT.

Are there government incentives or reduced rates for new autónomos?
Yes. In 2025, eligible first-time autónomos can request the €80/month reduced rate for the first 12 months during their RETA enrolment.