What is the OECD Local Development Forum 2025?
As stated on its official website, the OECD Local Development Forum is a global community composed of thousands of individuals committed to the shared goal of building more resilient, inclusive, and sustainable communities. This platform brings together representatives from national and regional governments, employment and training agencies, chambers of commerce, economic and community development agencies, businesses, NGOs, and social innovators, with the aim of exchanging experiences and generating solutions focused on local impact.
From July 8 to 11 of the current year, the Organisation for Economic Co-operation and Development (OECD) is holding the 2025 Annual Meeting of the Local Development Forum in Barranquilla, Colombia, under the theme: “Global Inspirations, Local Transformations.
The OECD’s decision to hold the 2025 Forum in Barranquilla, known as the “Golden Gate of Colombia”, is based on the city’s dynamic ecosystem for attracting foreign investment, as well as the sustainable transformation achieved through coordinated efforts among the public, private, and academic sectors.
Factors such as:
- High rate of bilingualism and human talent development
- Sustainable infrastructure
- Strategic geographic location
- Institutional stability and continuity of public policies
- Strengthening of the business fabric
Position Barranquilla as a development hub for international business in Colombia.
Legal vehicles for business development in Barranquilla – Colombia
The eyes of the world are now, more than ever, on Barranquilla - an industrial and port city undergoing significant local transformations with a global outlook. In its reinvention process, the city has focused on creating an enabling environment for national and foreign companies to carry out their internationalization plans through various legal vehicles, depending on the temporary or permanent nature of their activities.
Branches of Foreign Companies in Colombia
Foreign companies may choose to establish a branch in the country, understood as a commercial establishment opened by a company, either within or outside its domicile, for the purpose of conducting all or part of its business activities, and managed by a legal representative with authority to act on its behalf.
It is important to note that, although from a commercial standpoint branches are considered an extension of the parent company domiciled abroad, for tax purposes they are treated as separate legal entities.
On this matter, the tax authority in Colombia has stated in its official doctrine:
“… in the case of permanent establishments of foreign companies located in the country,Colombian tax law applies a notional separation between the establishment and its parent company, for the purpose of subjecting to taxation in Colombia the income attributable to such establishment.
Another option that foreign companies may consider for developing business in Barranquilla, Colombia, is the incorporation of subsidiaries or affiliates under the corporate form of Simplified Joint Stock Companies (S.A.S.), which may be established with one or more shareholders.
The difference between these two legal structures - namely, branches of foreign companies and S.A.S. - lies primarily in the fact that the latter offers greater ease of incorporation, as it does not require a public deed and may instead be established through a private document, resulting in lower registration costs.
Another key difference between the two structures lies in liability, since the S.A.S., as a legal entity separate from its shareholders or parent company, provides greater protection for the shareholders’ assets.
Branch vs. S.A.S.: Which Is More Advantageous When Investing in Colombia?
The choice between one structure or the other will depend on the specific circumstances of each case; however, due to the ease and practicality associated with the S.A.S., it becomes an attractive option when considering a business development in Colombia.
Other Legal Avenues for Establishing Operations in Colombia
In addition to branches, subsidiaries, or affiliates, foreign companies may also consider, in their market entry strategy for Barranquilla, Colombia, other structures such as representative offices, agents, distributors, and, in general, business collaboration agreements.
Barranquilla: A Strategic Destination for Foreign Investment
This environment of legal certainty allows Barranquilla, as a central city in the Colombian Caribbean, to offer unique competitive and comparative advantages, making it an attractive destination for the structuring of international business models.
Undoubtedly, the OECD Forum marks a turning point in the history and progress of Barranquilla.
We thank the OECD for placing its trust in Barranquilla and its people.
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Erwin Blanco Nagle
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