Young Entrepreneurs Law

Law 1780 of 2016 seeks to promote the creation of new young companies, with the understanding that a young company is one that is comprised by individuals or legal persons falling under the classification of small companies, understanding also that small companies are those with no more than 50 workers, and whose total assets are less than 5.000 Minimum Monthly Wages.

BENEFITS:

  • Exemption from the payment of the merchant's registrar for the first year, as well as its renewal. Please note: If the documentation required to maintain the benefits is not submitted at the time of renewal, payment of the cost of renewal of the merchant’s certificate shall be required with the understanding that the conditions to maintain the benefit were not met.
  • Benefits will be received in the contributions and payments made to family compensation funds for companies who hire young employees between 18 and 28 years of age, under conditions that will be defined by the National Government

REQUIREMENTS:

  1. Having less than 50 employees.
  2. Having total assets not exceeding 5.000 Minimum Monthly Wages.
  3. The Merchant's Certificate must be renewed on March 31, of each year, at the latest.
  4. Not be covered by any of the conditions described in article 48 of Law 1429 of 2010, nor in those listed in article 2.2.2.41.5.9 of Decree 639 of 2017. Any small company which is created after the entry into effect of this law, in which the corporate purpose, payroll, commercial establishment(s), address, intangibles or assets which comprise their exploitation unit are the same as a company which was dissolved, liquidated, spun-off or made inactive after the entry into effect of this Law, shall not eligible to receive these benefits represented in registrations and renewals, or in fiscal and labor contribution benefits.
  5. If an individual, must be between 18 and 35 years old.
  6. If a legal person, the capital must be owned by one or several people whose age range is between 18 and 35 years, who represent no less than one half plus one of the stock, shares or participation percentages the capital has been divided into.
  7. In accordance with Decree 639 of 2017, if the above requirements are met, the following documents must be added to the request for the merchant's registrar:
  • Copy of the personal identification document(s) of the individual or of the partners or shareholders, if a company.
  • Signed statement certifying the ownership of one half plus one of the stock, shares or participation percentages the partnership's or company's capital has been divided into, as applicable.
  • List of workers directly employed by the company, if any, stating their names and personal identification numbers.
  • When filing the request for the merchant's registration, the individual or legal person, either directly or through its legal representative, will state that it is compliant with the requirements set forth under article 2.2.2.41.5.2 of Decree 639 of 2017. The CCB form will state that said statement shall be understood to have been given under oath.

Furthermore, in order to maintain these benefits, when filing the request to renew the merchant's registrar, the individual or legal person, either directly or through its legal representative, shall provide:

  • A list of workers directly employed by the company, if any, stating their names and personal identification numbers.
  • A statement indicating that the company has made the required contributions to the Comprehensive Social Security System and all other payroll-related contributions, should it be mandated to do so, and that it has fulfilled all of its tax obligations.
  • A copy of the financial statements duly signed by the accountant or statutory auditor, as applicable, with cutoff as of December 31st of the immediately previous year.
  • When renewing the merchant's registrar for legal persons, a certificate shall be provided, as issued by the small young company's legal representative and/or the statutory auditor, certifying that he, or the partners whose age ranges between 18 and 35 years account for one half plus one of the stock, shares or participation percentages the company's capital has been divided into.
  • Copy of the personal identification document for the partners or shareholders, if they are different from those provided at the time the company was created.

Learn all about the cash refunds of Law 1780

Procedure for refunds

Refunds are made within the legally established terms, that is, if the refund does not exceed three SMMLV, the money will be delivered immediately. In the other cases, the established term is ten business days.

1. To request a refund in our offices, follow the procedure below:

  • Consult the list of beneficiaries of refunds.
  • Check that your small young company can access this benefit.
  • Download and fully complete the refund request form, which must be signed by the registered individual or company and/or the registered agent of the company, as applicable.
  • Go to any of 
     with said form and your ID document. 
  • Submit the refund request form at the cash register. 
  • The money will be refunded within the established response times.

2. To request a refund by email, follow the procedure below:

 Refunds for requests made by this medium may only be made by electronic transfer to an account of which the holder is the registered individual or company. Accounts with a holder who is the company’s registered agent shall not be accepted.

  • Check that your small young company can access this benefit.
  • Download and fully complete the refund request form, which must be signed by the registered individual or company and/or the registered agent of the company, as applicable.
  • Send said form with a copy of the ID of the registered agent or registered individual or company to the email: beneficiosley1780@ccb.org.co
  • The money will be refunded by electronic transfer within the established response times.
Verification of fulfillment of requirements

The small young companies required to accredit documentation to prove they meet all the requirements to access the benefit of Law 1780 must follow this procedure:

1. Consult the list of requirements to check whether it is required to accredit fulfillment of them.

2. Send the following documents by email: beneficiosley1780@ccb.org.co, as applicable:

Individuals:

• Copy of ID

Companies:
• Photocopy of the identification documents of the partners or shareholders at the time of incorporation in 2016 and at the time of renewal in 2017.

• Statement signed by the registered agent stating that the partners or shareholders of up to 35 years represent at least half of plus one of the installments or shares in which the capital is divided at the time of incorporation.

• Statement signed by the registered agent stating that the partners or shareholders of up to 35 years represent at least half of plus one of the installments or shares in which the capital is divided at the time of renewal.

• Financial statements as of December 31, 2016 (If you already submitted your financial statements to the CCB, please omit this requirement).

• Statement signed by the registered agent of compliance with tax and payroll obligations at the time of incorporation in 2016 and at the time of renewal in 2017.

3. Once the information is validated, we will respond to your request, indicating whether it meets all the requirements to access the benefits of said law, and if it does, we will indicate the steps to take for the refund of the amounts paid.

The following shall not be eligible for these benefits

No legal person or individual acting as a small young company shall be eligible to receive the benefits set forth under Article 3 of Law 1780 of 2016, when they are covered by any of the following situations:

  • Individuals who, prior to the entry into effect of the aforementioned law, have canceled their registration and are requesting a new one as an individual, for the same economic activity.
  • Any legal person created as the result of a spin-off of one or more existing legal persons.
  • The legal persons created after the entry into effect of the Law 1780 of 2016, resulting from a merger.
  • The legal persons re-established after the entry of the Law 1780 of 2016.
  • Legal persons created after the entry into effect of the Law 1780 of 2016 whose capital comes from trade establishments, branches or agencies, transferred by an existing legal person or an individual, which had been destined to develop an existing company.

 

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