The benefits of legality and the risks of informality
Avoid the risks arising from running an informal business.
|The benefits of legality||The risks of informality|
• Your company will have a unique, protected name.
• Slow business growth.
Myths about corporate legalization
There are several myths around corporate formalization, which include:
I have operated for a long time without a Merchant's Registration, and I have had no problems. I did not know the Merchant's Registration was mandatory.
It is mandatory for everyone involved in commercial activities to be listed in the Merchant's Registrar and to record in it all actions, ledgers and documents covered by law.
Be up-to-date with the renewal of your Merchant Registration, and continue doing business as usual. Access the benefits extended by the National Government through the Formalization and Job Generation Law, with incentives to entrepreneurs who have not fulfilled their obligation to renew during several years.
I was told the RUT was enough.
I inquired at DIAN, and I was told that after six months I can register my business.
Applying for the Single Fiscal Registrarion (RUT) is one of the requirements to be listed in the Merchant's Registrar. This proceeding can be carried out as soon as you start operating.