Advisory in Foreign Exchange Law
Our adivosory in foreign exchange law service provides update information about Colombian government’s response to the dynamism that Colombia is experiencing by receiving an increase in the flow of foreign investment. That is why our lawyers specialized in foreign exchange law takes into account the exchange controls exercised by the National Tax and Customs Directorate (DIAN) and the monetary policies that the Banco de la Republica de Colombia conducts as the government’s fiscal agent.
Foreign Exchange Law in Colombia
Taking these issues into account, G&D Consulting Group offers the advsiory in foreign exchange law advisory service, our purpose is to guide our clients complying with foreign exchange regime.
Avoid penalties with our advisory in foreign exchange law service
We know that companies and investors must monitor, reporting and compliance with foreign exchange regulations in order to avoid penalties under the regulations of DIAN and Banco de la Republica guidlines, which is why we offer:
- Regular Compliance under the International Exchange Regulations.
- Audit of foreing exchange forms submitted to Banco de la Republica and DIAN.
- Assistance with International Investment Registration Statement.
- Assistance with Capital Recomposition Register
- Assistance on how to register supplementary investment to allocated capital and updating of asset accounts.
- Assistance in obtaining approvals from the Banco de la Republica depending on requisitions under foreing exchange control regulations.
- Advice and certification on inward and outward investment, export and import transactions
- Assistance in the establishment/cancellation of the Liaison Office, Branch Office, Project Office and wholly owned subsidiary in Bogota under the laws of the Central Bank of Colombia, the Colombian Tax and Customs Directorate (DIAN) and the Companies Act.
- To modify or update legal concepts related to transactions that are obligatory to be channelled to the foreign exchange market.
- Advisory in foreign exchange law in case of foreign investment or business reorganisations.
- Advising on the response to proceedings related to possible foreign exchange infringements brought by the DIAN or the Superintendency of Companies.
- Due diligence processes in foreign exchange control matters.
- Advice on foreign exchange planning strategies, within the current legal framework.
Foreign exchange advisory service portfolio in Colmbia.
Our firm offers a comprehensive portfolio of services, providing professional and specialised accompaniment in foreign exchange matters, which allows us to identify possible contingencies in relation to the fulfilment of foreign exchange obligations and facilitates knowledge of the foreign exchange regime.
In Colombia, foreign exchange operations are regulated by the Central Bank of Colombia. For more information on the entity, see: banrep.gov.co
Our Bogota location is very convenient for those companies that currently process frequent transactions because the main banking offices are located in the city, plus the largest customer service centre of the Central Bank is also in Bogota, so requests can be fulfilled more quickly.
How to receive foreign currency or resources from abroad?
You must be clear about the concept for which you are receiving the foreign currency in order to carry out an adequate monetisation by filling out the corresponding exchange forms designed by the Banco de la Republica or its intermediary bank for these purposes.
In Colombia you can receive foreign exchange from the sale of products or goods, indebtedness, capitalisation of companies, purchase of securities or goods, sale of services, sale of contributions in companies. For each of these major items there is a form designed by the Banco de la Republica and on the back of the form (which can be consulted digitally) there are the existing exchange numbers with which a foreign exchange transaction can be identified.
To be aware of, if you make a mistake in filling out a form, do not be afraid, it can be corrected.
Remember that external borrowing operations must be carried out in 2 steps. First, request an authorisation with form No. 6 (Information on external indebtedness) and second, monetise the resources or foreign currency with form No. 3 (Declaration of exchange for external indebtedness).
It is important to bear in mind that in Colombia, infractions committed under the foreign exchange regime can be up to 200% of the value of the transaction.