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Youth Entrepreneurship Law
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Youth Entrepreneurship Law
Through Law 1780 of 2016 seeks to promote the creation of new young companies, understanding that a young company is one formed by natural or legal persons that comply with being small companies, here small companies are understood as those whose staff does not exceed 50 workers and whose total assets do not exceed 5 000 Current Legal Minimum Monthly Wages.
Benefits
Benefit 1 | Youth Entrepreneurship Law
Exemption from payment of the commercial registration and its renewal for the first year.
Benefit 2 | Youth Entrepreneurship Law
Employers who hire young people between 18 and 28 years of age will receive benefits in the contributions to the family compensation funds, under conditions to be established by the National Government.
Not to have more than 50 employees.
Not to have as total assets more than 5,000 Minimum Legal Monthly Wages in Force (SMMLV).
Renew the commercial registration before March 31 of each year.
Not be subject to any of the budgets mentioned in Article 48 of Law 1429 of 2010 or those mentioned in Article 2.2.2.2.41.5.9 of Decree 639 of 2017. That is, those companies incorporated after the entry into force of this Law in which the corporate purpose, payroll, commercial establishment(s), domicile, intangibles or assets that make up its economic exploitation unit, are the same of a company dissolved, liquidated, spun-off or inactive after the entry into force of this Law.
If you are an individual, you must be between 18 and 35 years old.
If you are a legal person, the capital must have the participation of one or more young people between 18 and 35 years old, representing at least half plus one of the quotas, shares or participations in which the capital is divided.
In accordance with Decree 639 of 2017, if you meet the above requirements, you must add the following documents to the application for commercial registration:
A. Photocopy of the identification document of the individual or of the partners or shareholders, in the case of a corporation.
B. Subscribed declaration stating the ownership of half plus one of the quotas, shares or participations in which the capital of the corporation or company is divided, as the case may be.
C. List of workers directly linked to the company, if any, indicating their names and identification.
D. At the time of making the application for the Commercial ID, the individual or legal person, directly or through its legal representative, shall declare that it complies with the requirements stipulated in article 2.2.2.2.41.5.2. of Decree 639 of 2017. In the form the CCB shall leave a record that such declaration shall be understood under oath.
Please note
In order to keep these benefits, at the time of applying for the renewal of the commercial ID, the individual or legal entity, directly or through its legal representative, must declare:
List of workers directly linked to the company, if any, indicating their names and identification.
That the company has made the contributions to the Integral Social Security System and other payroll contributions, if required to do so, and has complied with its tax obligations in a timely manner.
Submit a copy of the financial statements duly signed by the accountant or statutory auditor, as the case may be, as of December 31 of the immediately preceding year.
For the renewal of the commercial ID of companies of legal persons, a certification or certificate issued by the legal representative and/or tax auditor of the young small business must be presented, where it is accredited that the partner or partners between 18 and 35 years of age represent at least half plus one of the quotas, shares or participations of its capital.
Photocopy of the identification document of the partners or shareholders, if they are different from those of the incorporation.
- Refund procedure
- Verification of compliance with requirements
- Who cannot access this benefit
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