A new law, Ley 1901 of 2018, passed in June 2018 adds a new entity to the list of legal organizations in Colombia.
The new entity—commercial benefit and interest societies (Sociedades Comerciales de Beneficio e Interés Colectivo (BIC))—is not, in the traditional sense, a new type of company or society. It is a new designation for existing or new companies.
Companies that want to be designated as having BIC status must adopt standards that are favorable for “the common good” and that demonstrate care of the environment. In addition, BIC entities need to adopt fair salary policies, plans for training employees, employment options for “vulnerable populations,” and enter into contracts for goods and services with domestic companies so as to promote regional development.
While there are no specific tax benefits being made available to BIC companies, it is expected that being identified as a BIC entity would have a positive impact on the corporate reputation in light of the corporate social responsibility position.
Read a June 2018 report (Spanish) prepared by the KPMG member firm in Colombia
<p>© 2018 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.</p>
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.