Government Unveils Bill to Cut Business Red Tape and Costs

The Colombian government has presented a bill in Congress to streamline business regulations and reduce associated costs, according to the Commerce Ministry. Commerce Minister Mauricio Gomez introduced the initiative, which aims to eliminate bureaucratic hurdles and administrative delays that hinder investment, job creation, and the establishment of new companies in the country.

The bill seeks to ease operations for micro, small, and medium-sized enterprises (MSMEs), which often lack the resources to manage repetitive procedures. One key proposal is the creation of a Digital Single Business File, a tool that would enable government agencies to share information and prevent businesses from submitting duplicate documents.

Another significant component is strengthening the Single Business Window (VUE), with the goal of consolidating and simplifying company formation procedures. The government hopes this will reduce duplication and establish clearer processes, particularly for those starting a business with limited administrative capabilities.

The bill also targets formalization costs by eliminating the fee associated with the fire department's technical safety inspection for microenterprises. This change is expected to reduce one of the financial burdens faced by small businesses, which often have less capacity to absorb additional costs.

Beyond company creation, the initiative includes measures to streamline investments in sectors like construction and urban development. The government proposes a single, comprehensive request to prevent authorities from seeking fragmented information at different stages of the process. Additionally, the binding urban planning certificate would be issued within 15 business days to reduce processing times.

The bill also aims to strengthen the Single Foreign Trade Window to improve coordination among agencies and prevent businesses from repeatedly submitting documents or undergoing duplicate checks during transactions. The government emphasizes that strengthening these checks does not mean eliminating necessary controls, such as those protecting health, safety, the environment, or third-party rights.

Instead, the proposal seeks to make existing checks more digital, coordinated, and proportional to the level of risk associated with each activity.

The government stresses that the aim of these measures is to enhance Colombia's competitiveness and create a more favorable environment for businesses to produce, invest, and generate employment.