What you should know about the cancellation and substitution of foreign investments in Colombia.

The cancellation or substitution of foreign investments in Colombia, or of Colombian investments abroad, is a regulated process that requires compliance with certain established requirements and procedures.

What does the cancellation of an investment involve?

The cancellation of an investment refers to the total or partial reduction or liquidation of an investment previously registered with the Banco de la República. It is important to note that this procedure only applies when there is a prior registration of the investment to be cancelled and when, by legal act or event, the investor ceases to be the holder of that investment.

What is the substitution of a foreign investment?

The substitution of a foreign investment involves a change in one of the following aspects of a direct foreign capital investment that has been previously registered: the holders of the investment, the purpose of the investment or the company receiving the investment. This process entails the partial or total cancellation of the initial registration and the creation of a new registration.

What procedures are required?

The cancellation and substitution procedures must be carried out through the Foreign Exchange Information System of the Banco de la República and must be pursued by the investors, their attorneys-in-fact or the legal representatives of the receiving companies.

How much time do I have to process the cancellation or substitution?

The deadline established to process the cancellation or substitution is 6 months from the date of the operation.

At Hub Legal we understand how crucial it is to comply with the requirements and procedures applicable to these types of operations. That is why we offer specialized legal advice on foreign exchange regulation to guide and support you throughout the process.

For more information, please do not hesitate to contact us.