Some of the facilities and other dispositions provided to entrepreneurs by law, in matters related to public registries.
Norms to prevent existing companies from obtaining benefits under the law
Those who provide false or fraudulent information in order to be covered by the benefits established by law, shall be liable to pay the amounts of any discounts they receive, in addition to a penalty equivalent to two hundred percent (200%) of such amounts, notwithstanding any additional criminal penalties applicable.
The Special Administrative Unit for Pension and Labor Contribution Management for Social Protection (UGPP) shall be tasked with tracking and overseeing the mandate set forth in article 48 of the Employment Formalization and Generation Law.
Cleansing of the Merchant's Certificate
Those registered companies which have not renewed their Merchant's Certificate for over ten years shall be awarded a 12 month term to get up to date; after such period, that is, after December 29, 2011, said legal persons shall be considered to have been dissolved, and being liquidated. In the case of individuals and commercial establishments, branch offices and agencies, they will be canceled and terminated on the same date, notwithstanding any rights by properly registered third parties.
The law allows for companies being liquidated to be reactivated through an agreement from the general shareholders meeting, the board of partners, the single shareholder or the foreign company that is the owner of foreign branch offices in Colombia, as long as external liabilities do not exceed 70% of the company's total assets, and as long as the distribution of the remaining assets to the associates and partners has not yet been arranged. The decision for such reactivation shall be recorded in a minute that will be registered in the merchant's registrar at the local chamber of commerce.
Electronic media will be used for the processing of bankruptcy proceedings in accordance with the dispositions set forth in Law 527 of 1999 and for complying with the proceedings involving the Commercial Registry, non-for-profit organizations and for the delegate Unified Offeror Registry with chambers of commerce.
In those cases in which a personal appearance is required for a specific proceeding, such a requirement will be deemed as fulfilled through the use of a digital signature. These kinds of electronic media shall not be used whenever the law requires that securities be provided in their original version.