What is the best bank for newly established companies in Colombia?

Choosing the right bank when incorporating a company in Colombia is crucial. Whether it’s a branch office, subsidiary, or representative office, the compliance process (KYC) can be challenging. It’s important to note that delays in KYC approval could halt the process of receiving working capital for up to six months. So, What is the best bank for newly established companies in Colombia?

With that in mind, which is the best bank to open a business account in Colombia? It’s important to evaluate your specific needs—particularly the agility and efficiency in transferring funds to begin operations. When choosing the right bank, consider the following key aspects.

Incorporating a Business in Colombia: Everything You Need to know about banks to Start.

1. KYC compliance process.

The due diligence or KYC (Know Your Customer) process is mandatory for all banks in Colombia to prevent money laundering and other financial crimes. Banks will request detailed information about the company’s owners, directors, and ultimate beneficiaries, which may take some time to process depending on the complexity of the company.

Some banks have lengthy compliance procedures, and clients often struggle with the required documentation, especially if legal representatives or the administrative team are located thousands of kilometers away.

You should be prepared with the following documents to move forward:

• Apostilled documents
• Good standing certificate or homologated document
• RUB, Single Registry of Ultimate Beneficial Owners
• RUT (Registro Único Tributario) certificate (local document)
• Certificate of Existence and Legal Representation (local document)
• Some banks may request proof of a physical commercial address.

2. Tariff of the services.

Most banks in Colombia have the following charges for their corporate clients:

• International wire transfer fees
• National wire transfer fees
• Fess to process payments to different banks
• Monetization process fees (conversion of any foreign currency into COP)
• Card holding fees
• Administrative fees
• Corporate solutions fees
• Payroll management fees
• Payment confirmation and third-party recognition service fees

3. Corporate portal service

You should be aware that only international banks offer corporate portals in English. It’s advisable to familiarize yourself with key Spanish vocabulary if your treasury department will be processing payments, or consider outsourcing this process.

4. TOKEN.

Many banks still use physical tokens for double approval when processing disbursements.

Few banks offer digital tokens—these are apps that you can install on your mobile device. The important consideration here is that you’ll need a local SIM card to set up the app and validate the token. This allows you to travel and process approvals for disbursements from abroad.

5. Effective support.

The best support is usually offered by international banks. Therefore, you should consider partnering with them for your initial operations in Colombia.

6. Bilingual support.

One key consideration for foreign businesses is bilingual support, which can be challenging to find. There are three crucial areas where bilingual support is necessary:

• General customer support
• IT support
• Currency negotiation support

7. Monetization

The monetization process in Colombia, which refers to the conversion of foreign currency into Colombian pesos (COP), generally follows these steps:

• This process typically occurs during a narrow time window (from 8:00 AM to 11:00 AM CST, Colombia time).
• In most cases, the exchange is processed over the phone with an agent from the Foreign Exchange Trading Desk (Mesa de Negociación de Divisas).
• Few banks offer digital services for currency exchange without additional charges, so it’s advisable to confirm this with the bank to speed up the process, especially if you are abroad and need to approve payments remotely.
• Review the exchange rate (USD to COP) for the day.
• Complete the currency exchange transaction, which includes filling out the correct exchange form and reporting the transaction to the Central Bank (Banco de la República).
• Register the transaction in compliance with fiscal regulations.
• Comply with tax regulations for large amounts. Many banks have thresholds for transactions (e.g., $50K, $100K, $250K, $500K, $1M and above), so you may need to request an increase in the limit for processing larger wire transfers. Typically, this request must be made in writing by the legal representative, and in some cases, the legal representative must visit the physical office.

**Advisory in Foreign Exchange Law | You may also be interested in receiving more information about foreign exchange law and compliance advice to ensure your business meets regulatory requirements.

8. PSE connection

Another important consideration is choosing a bank that supports PSE (Pago Seguro en Línea) for making payments to public services and tax obligations. This can save you time and frustration when fulfilling your tax duties.

Which banks in Colombia offer PSE (Pago Seguro en Línea) services?

• The following banks allow you to make payments through PSE:

Banco Agrario, Banco Av Villas, Banco BBVA, Banco Caja Social, Banco Citibank, Banco Scotiabank Colpatria, Banco Davivienda, Banco de Bogotá, Banco de Occidente, Banco Itaú, Banco Popular, Banco Sudameris, and Bancolombia.

Which banks are integrated with DIAN for processing tax payments with credit card?

• The following banks support paying tax obligations with a credit card:

Banco Av Villas, Banco BBVA, Banco Davivienda, Banco de Bogotá, Banco de Occidente, Banco Itaú, Banco Popular, Banco Sudameris, and Bancolombia.

Banks in Colombia with PSE services and support for tax payments via credit card

 Source: Dian.gov.co – “Abecé – Medios de pago de impuestos”

So, which are the best options in our experience?
*The order of the banks institutions does no reflect any specific benefit.

If you need further assistance with incorporating your business in Colombia, contact us. We offer expert advice on opening bank accounts, treasury services, and legal guidance to help you navigate the process.