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T O D O
B U S I N E S S I N
C O L O M B I A
LEGAL
GUIDE
2019
3
CONTENT
Introduction
Chapter No. 1
Chapter No. 2
Chapter No. 3
Chapter No. 4
Chapter No. 5
Chapter No. 6
Chapter No. 7
Chapter No. 8
Chapter No. 9
Chapter No. 10
Chapter No. 11
Chapter No. 12
Protection to foreign investment
Foreign Exchange Regime
Corporate Regulations
Foreign Trade And Customs
Labor Regime
Immigration Regime
Colombian Tax Regime
Colombian Environmental Regime
Intellectual Property
Real Estate
Government Procurement
Accounting Regulations For Companies
4 5
L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A
INTRODUCTION
Colombia is a democratic country, with
a privileged and strategic location in La-
tin America. It is rich in natural resources
and is at present time one of the main in-
vestment destinations in the region mainly
because of its commercial opportunities
and its legal stability. All of this has con-
tributed to Colombia having one of the
top progress, not only economic but also
cultural, in investment and development,
compared to the rest of the region.
In the last decade, Colombia’s GDP grow-
th rate has exceeded the world average,
and in recent years the country has shown
great economic stability, mainly by the
use of sensible economic policies in con-
nection with challenging situations, which
have managed to maintain low inflation
levels. Even, the principal risk rating
agencies have maintained Colombia in
stable confidence indices.
Procolombia in association with Baker &
Mckenzie have prepared this Legal Guide
to do Business in Colombia (the “Guide”)
to provide foreign investors guidelines on
the main legal aspects. The content of this
document was prepared and updated in
March 2019, based entirely on the cu-
rrent information and legislation.
Warning
The purpose of this document is purely
informative. The Guide is not intended
to provide legal advice. Therefore, those
using this Guide shall not be entitled to
bring any claim or action against Baker
McKenzie or ProColombia, their respecti-
ve directors, officers, employees, agents,
advisors or consultants arising from any
expense or cost incurred into or for any
commitment or promise made based on
the information contained in this Guide.
Neither shall they be entitled to indemnifi-
cations from Baker McKenzie nor ProCo-
lombia, for decisions made based on the
contents or the information provided in
this Guide.
We strongly advise that investors and in
general readers who make use of the Gui-
de, consult their own legal advisors and
professional consultants regarding invest-
ment in Colombia.
On the figures on this Guide
The figures used on this Guide have been
determined as follows: (i) the figures ex-
pressed in US dollars have been calcula-
ted using an exchange rate of COP 3000
= USD 1; and (ii) for those based on the
current minimum legal monthly wage
(MLMW) in Colombia, the MLMW for the
year 2019 is COP $828,116 (approx.
USD 276).
The foreign exchange rate changes daily
with the supply and demand for currency
and the MLMW is adjusted at the end of
every calendar year (December) for the
following year.
We hope that this Guide will be of great
use for your investment in Colombia.
6 7
L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A
Ta t a c o a D e s e r t , H u i l a
C O L O M B I A N
E N V I R O N M E N T A L
R E G I M E
CHAPTER
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COLOMBIAN
ENVIRONMENTAL
REGIME
Four things an investor should know about
the environmental regime:
1. In Colombia, there is a National En-
vironmental System (SINA in Spanish),
which consists mainly of the following
bodies:
(a) Ministry of Environment and
Sustainable Development (MADS in
Spanish) as the national environmen-
tal authority;
(b) Regional Autonomous Corpora-
tions (CARs in Spanish) and Urban
Environmental Authorities (AAU in
Spanish);
(c) National Environmental Licensing
Authority (ANLA in Spanish) and
(d) Scientific Entities Attached and Re-
lated to the Ministry of Environment.
2. Likewise, there is a National System
of Protected Areas (SINAP in Span-
ish), which is a set of protected areas,
social actors and management strat-
egies and instruments that articulate
them, to contribute as a whole to the
fulfillment of the country’s conservation
objectives1
. Depending on the type or
protected area, the development of
projects, works or industrial activities
shall be prohibited or restricted. Ac-
cording to the applicable regulations,
the protected areas are divided into2
:
	 1. Public protected areas:
a) Sistema de Parques Nacionales
Naturales
b) Reservas Forestales Protectoras
c) Parques Naturales Regionales
d) Distritos de Manejo Integrado
e) Distritos de Conservación de Sue-
los
f) Áreas de Recreación
2. Private protected areas: Natural
Reserves of Civil Society
3. Projects, works or activities that may
cause a deterioration of the environ-
ment, or introduce significant or noto-
rious modifications to the landscape,
must obtain an environmental license.
These projects, works or activities, are
exhaustively established in the law.
The environmental license will imply
all the permits, authorizations and/or
concessions for the use and/or affecta-
tion of the renewable natural resources
that are necessary for the useful life of
the project, work or activity.
4. When planning to develop a proj-
ect in territories classified as ancestral
territories, where indigenous, gypsy
(ROM in Spanish), raizal and/or af-
ro-Colombian communities are locat-
ed, the prior consultation process with
those communities should be carried
out, with the purpose to present and
analyze the impact of the project from
an economic, environmental, social
and cultural point of view.
Colombia has a broad environmental
legislation and international instruments,
which guarantee, as a duty of the State
and of the people, the protection of:
(i)	 The natural wealth of the Nation,
with which we have the right to enjoy
a healthy environment.
(ii)	 The existence of ecological ba-
lance and the rational management
and use of natural resources.
(iii)	 Public safety and health.
(iv)	 Disaster prevention.
With the above, it seeks to ensure:
- Sustainable development.
- The diversity preservation and envi-
ronment integrity.
- Natural resources, landscape and
human health protection.
- Areas of special ecological impor-
tance preservation.
- Planning, management and rational
use of natural resources.
The following is a brief summary of the
most relevant aspects, for a foreign inves-
tor, of environmental regulations and ins-
titutions in Colombia.
8.1. Environmental Licensing Re-
gime
Works execution, industries establishment
or the development of activities that can
generate impacts to the environment, pro-
duce deterioration of renewable natural
resources or introduce significant or noto-
rious modifications to the landscape, will
require an environmental license. The au-
thorities competent to grant environmental
licenses are:
a) National Authority for Environmen-
tal Licenses (ANLA),
b) Regional Autonomous Corpora-
tions (CARs) and those of Sustainable
Development, who may delegate the
exercise of this competence to territo-
rial entities
c) Environmental authorities created
by law 768/2002. .
Through the environmental license, the
execution of a project, work or activity
is authorized, and is subject to the imple-
mentation of prevention, mitigation, co-
rrection, compensation and management
of the environmental measures for the ge-
nerated effects. As a general rule, only
the works, projects or activities expressly
indicated in the current regulations requi-
re an environmental license , which must
be granted prior to the development of
the same.
The environmental license must be obtai-
ned through an administrative procedure,
which starts with the presentation of an
Environmental Diagnosis of Alternatives
(DAA in Spanish), (unless the competent
environmental authority certifies that the
study is not required), in which the infor-
mation required to evaluate and compare
the different alternatives under which it
is possible to develop the project, work
or activity is presented. In addition to the
DAA, the applicant for the environmental
1
Source: http://www.parquesnacionales.gov.co/portal/es/sistema-nacional-de-areas-protegi-
das-sinap/ on February 2019.
2
Decree 1076/2015
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license must submit an Environmental Im-
pact Assessment (EIA in Spanish), which
shall include the information detailed in
the applicable regulation, including the
respective Environmental Management
Plans (PMA in Spanish), which must be
prepared based on the general terms of
reference published by the Ministry of En-
vironment and Sustainable Development,
or terms of reference developed by the
Aspect Permit Description Validity
Air
Atmospheric
emissions
permit
The emission of gases to
the atmosphere, either by
stationary or mobile sources,
is regulated as well as the
emission of noise and offen-
sive odors. In some cases
the permit for atmospheric
emissions will be required. In
general, the project, work or
activity that emits gases into
the atmosphere, must comply
with the permissible limits
established in the law for the
type of industry or activity.
The permit must identify the
type of project to be carried
out, the authorized emission
and the quantity and quality
that characterize it.
Maximum 5
years.
Figure 1. Environmental licensing process
competent environmental authority for a
specific project or activity. See Figure 1.
In no event, the same project, work or
activity will require more than one envi-
ronmental license. For the development
of projects, works and activities related
to mining and hydrocarbons, the compe-
tent environmental authority will grant a
global environmental license covering the
entire area of exploitation requested. The
validity of the environmental license will
be equal to the duration of the project.
According to the law, the environmental
licensing process could take approxima-
tely 110 working days, plus the terms es-
tablished to correct any shortcomings that
may arise.
Decree 1076/2015, includes an oral
hearing meeting with the competent en-
vironmental authority, where the required
information shall be requested just once
and the project that is planned to develop
is presented. At that hearing, the quality
criteria applicable to environmental stu-
dies should be established. In addition,
it seeks to bring the interested parties clo-
ser: environmental authority and license
applicant, which expedites the process of
environmental licenses in Colombia.
The interested party must pay for the re-
quests of environmental procedures eva-
luation services according to tariffs set by
the Government and submit semiannual
reports of environmental compliance,
which are used by the environmental au-
thority to monitor them.
8.2. Environmental permits
Independently of obtaining an environ-
mental license, some projects, works or
activities, require specific environmental
permits as established by the law, based
on the characteristics of each and their
environment impacts.
When these permits are part of the en-
vironmental license, the environmental
authority that granted the environmen-
tal license is the authority competent to
exercise control and follow-up activities
on such permits. When these permits are
not part of an environmental license, they
are granted by the Regional Autonomous
Corporations with jurisdiction in the pro-
ject area. These permits are:
1 1 0 B U S I N E S S D A Y ST o t a l
t i m e
- EIA filing with environ-
mental authority.
- Immediately begins the
process of environmental
license.
- Meeting and oral
hearing with environ-
mental authority and
single request for
additional information.
- Request to other entities
for technical concepts or
relevant information.
- Field visit and EIA
evaluation.
- Provide such informa-
tion.
- Environmental license
grant.
- Provide requested
information.
20 business days 10 business days 20 business days
10 business days
20 business days 30 business days
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Concessions
Grants the right to use and
take water from surface bodies
and/or underground wells.
In general terms, the validity
of these permits will be of ten
years, and exceptionally up to
fifty years for works destined to
the provision of public services
or services necessary for the
construction of works of social
interest.
Maximum 10
years Maximum
50 years
Dump permits
Grants the right to carry out
verifications in water bodies.
The permit will be granted
according to the project cha-
racteristics, but in no case may
exceed ten years.
Maximum 10
years
Infiltration
permits
The infiltration of liquid waste
into the soil associated with
an aquifer requires discharge
permits.
Maximum 10
years
Channels occu-
pation
In the event that it is necessary
to intervene a channel, it will
be required the permission of
occupation. It will be necessary
to advance the construction
and operation of hydraulic
works for the defense and con-
servation of lands, riverbeds
and marginal slopes of rivers,
streams and other bodies of
water.
Not established
Prospecting
and Explora-
tion
It will be necessary to obtain a
permit for exploration of wells
and groundwater exploration
in the event that it is intended
to explore the subsoil in search
of groundwater.
Maximum 1 year
Exploitation
of trawling
and quarrying
materials
Any activity that requires the
exploitation of trawling mate-
rial from the channels or beds
of water streams or reservoirs
is subject to the respective
permit to exploit trawls.
Maximum 6
months
Water
Waste and
hazardous
waste
Forest utiliza-
tion
It requires the permission of
forest advantage in the event
in which it is tried to extract
products of a forest for the ac-
complishment of any activity,
or when it is wanted to take
advantage of isolated trees.
It will be set
according to
specific cha-
racteristics
Deforestation
and pruning
permit
Permission will be required for
the cutting or pruning of trees
and for the management and
transportation of extracted
species.
Not establi-
shed
Forest utili-
zation
Forest in-
dustries and
companies
register
All forest companies must ob-
tain permission to use natural
resources.
Does not
apply
Safe passage
It must have a unique national
pass for the mobilization of
flora specimens.
Only 1 time
Natural forests
study
A permit is required for the
natural forests and wild flora
study, whose purpose is to
project works or works for
their future use.
Maximum 2
years
Forest utili-
zation
Aspect Permit Description Validity Aspect Permit Description Validity
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Wildlife (fau-
na) harnessing
Any project that involves the
use of wildlife and its pro-
ducts can only be done by
permission, authorization or
license.
Maximum 1
tear
Scientific
Research in
Diversity
Any scientific research project
on biological diversity, collec-
tion, capture, hunting, fishing,
manipulation of the biological
resource and its mobilization
in the national territory, must
obtain study permits.
Maximum 2
years
Soil
Intervention on
the archaeolo-
gical heritage
authorization
In order to carry out actions
in which the archaeological
heritage of the Nation is invol-
ved or can intervene, autho-
rization for exploration and/
or archaeological excavation
must be requested.
During the
intervention
Wildlife
(fauna)
8.3.	 Consultations with indige-
nous, raizal, gypsy and Afro-Co-
lombian communities
In the event that any projects, works or
activities are going to be done in the terri-
tories of indigenous, afro-Colombian, rai-
zal or gypsy communities or in ancestral
territories of these communities, it will be
necessary to carry out a prior consultation
process, through which the economic, en-
vironmental, social and cultural impacts,
are evaluated, in order to guarantee the
participation of communities in the use,
management and conservation of natural
resources. This consultation is an essential
requirement in the environmental licen-
sing process.
The Directorate of Prior Consultation of
the Ministry of the Interior is the authority
responsible for matters relating to prior
consultations with ethnic communities.
According to the jurisprudence, the fun-
damental and constitutional right of the
indigenous communities to be consulted is
susceptible of being protected by means
of a special and preferred judicial action
denominated the guardianship action.
It is important to clarify that, the consent
of the communities is not obligatory for
the project to be viable. However, there
must be evidence of a good faith effort on
the part of the interested party in the envi-
ronmental licensing, of wanting to reach
an agreement with these communities.
8.4.	 Protected areas
Colombia has a National System of Pro-
tected Areas (SINAP in Spanish), which
guarantees the conservation of the most
valuable resources of the country and
contributes to the environmental and terri-
torial ordering. This system is made up of
different kinds of environmentally protec-
ted areas, including the public protected
areas, among which there are mainly the
national natural parks, regional natural
parks, protecting forest reserves and inte-
grated management districts, and private
protected areas such as the natural reser-
ves of civil society.
The SINAP and the forest reserves cover
more than 10% of Colombia’s land area.
That is why it is important to take into
account the protection regime of these
areas, especially for the extractive indus-
try, because their management or zoning
plans provide restrictions or prohibitions
for these activities.
As a general rule, all extractive activities
are prohibited in natural parks (national
and regional), which are one of SINAP’s
most stringent conservation categories.
Likewise, they are prohibited in forest re-
serves, but some of these reserves (those
created by Law 2 of 1959) may be sub-
ject to the removal of a temporary or defi-
nitive area, to allow activities considered
to be of public or social interest, such as
Mining and oil industry.
Due to the above mentioned, it is impor-
tant to perform due diligence in the areas
in which projects will be executed, so the
investment that is intended to be done
would not be in risk. See Figure 2.
Aspect Permit Description Validity
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8.5. Main environmental regula-
tory and control institutions
8.5.1. Environment and Sus-
tainable Development Ministry
(MADS in Spanish)
It is the entity in charge of managing the
country’s environmental policy and pro-
moting the conservation of renewable
natural resources in a sustainable deve-
lopment framework. This entity defines
the programs, policies and regulations to
which the recovery, conservation, protec-
tion, management and use of renewable
natural resources and the environment
shall be subject. Likewise, the Ministry is
in charge of the National Environmental
System coordination.
8.5.2.	National Authority for Envi-
ronmental Licenses (ANLA in Spa-
nish)
It is a special administrative unit, of the
national order, in charge of granting and
monitoring the environmental licenses for
projects, works or activities subject to li-
censing, permits or environmental proce-
dures.
8.5.3.	Regional Autonomous Cor-
porations and Sustainable Develo-
pment (CAR in Spanish) and Urban
Environmental Authorities (AAU in
Spanish)
They are public entities created by the
law, integrated by the territorial entities
that due to their characteristics constitute
the same ecosystem or form a geopoliti-
cal, biogeographic or hydro geographic
unit, vested with administrative and finan-
cial autonomy, own resources and legal
capacity. They are in charge of mana-
ging, within the area of their jurisdiction,
the environment and renewable natural
resources and their sustainable develop-
ment. See Figure 3.
Figure 2. Protected areas in Colombia
Adapted from: SINAP, 2018
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Figure 3. Regional Autonomous Corporations Jurisdiction
Adapted from: Asocar, 2017
8.5.4. Hydrology, Meteorology
and Environmental Studies Ins-
titute (IDEAM in Spanish)
It is responsible for the collection and
management of specialized information
on the different ecosystems found in the
country. Sets the technical parameters to
promote the proper land use within the
context of land use planning. It is res-
ponsible for collecting, processing, inter-
preting and making public hydrological,
meteorological and geographic data on
biophysical aspects, geomorphology, soi-
ls and vegetation cover, for the proper
management and rational use of the na-
tural resources of the country.
8.6. Administrative liability and
environmental sanctioning regime
Any violation or omission in an environ-
mental matter is considered to be an in-
fraction that:
- Constitutes a violation of the rules con-
tained in the Renewable Natural Re-
sources Code.
- Constitutes a violation in the other ex-
isting legal environmental provisions.
- Constitutes a violation of administra-
tive acts from the competent environ-
mental authority.
- Constitutes damage to the environment
(whenever there is damage, a genera-
tive event with guilt or fraud and a caus-
al link between the two.
The guilt of the alleged offender is presu-
med, and it corresponds to him, to prove
that he did not act with guilt or fraud. In
addition to the administrative sanction,
the offender may respond civilly to third
parties for the damages that the act or
omission would have caused.
In accordance with the environmental
sanctioning regime, in case that the alle-
ged offender is liable, the environmental
authority may impose the following sanc-
tions:
- Impose daily fines of up to 5,000
MMLW. (COP $3.906.210.000
Approx. USD $1,302,070).
- Generate revocation or expiration of
the environmental license or permit.
- Temporary or permanent closure of
the establishment, and demolition of
works as a preventive measure.
The imposition of a sanction does not re-
lease the offender from compliance with
the measures considered relevant by the
competent environmental authority to
compensate and restore the damage or
the impact caused by the infringement.
The environmental authority is empowe-
red to impose preventive measures,
which aim at avoiding or preventing the
occurrence of a fact, the performance of
the activity or the existence of a situation
threatening the environment or health.
These and other preventive measures can
be imposed by an administrative act. Pur-
suant to the environmental sanctioning re-
gime, the preventive measures are:
a) Written warning:
b) Preventive seizure of wildlife pro-
ducts, elements and byproducts;
c) suspension of the work or activity
when it may cause a damage or
danger to the environment, natural
resources, landscape or human health
or when the project has been started
without permission, concession, autho-
rization or environmental license or in
violation thereof.
Regional Autonomous
Corporations
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Standard Regulated Topic
Principles and institutional framework
Political constitution.
Right of all people to a healthy environ-
ment.
Law 99 of 1993.
Contains the basic principles and creates
the environmental institutionalism through
the National Environmental System (SINA
in Spanish).
Law 753 of 2015.
National Development Plan (2014 -
2018) - establishes mechanisms of integral
intervention in rural territories.
Decree Law 2811 of 1974.
Code of Renewable Natural Resources
- establishes detailed rules on the ma-
nagement of certain renewable natural
resources such as forests, soils, water and
the atmosphere. Right of all people to a
healthy environment.
Decree 1076 of 2015.
Single Regulatory Decree of the Environ-
ment Sector and Sustainable Development
(compiles all the Colombian environmental
regulations 2015).
Decree 1299 of 2008 (compiled in De-
cree 1076/2015).
Creates the obligation, under certain
circumstances, to have an Environmental
Management Department in certain com-
panies at an industrial level.
Decree 2372 of 2010 (compiled in De-
cree 1076/2015).
Regulates the SINAP.
Resolution 415 of 2010.
Regulates the Single Registry of Environ-
mental Offenders (RUIA in Spanish).
Resolution 870 of 2017.
Establishes the Payment for Environmental
Services (PES in Spanish) and other incen-
tives for conservation.
Resolution 097 of 2017.
Creates the Single Registry of Ecosystems
and Environmental Areas (REAA in Spa-
nish), whose objective is to identify and
prioritize ecosystems and environmental
areas of the national territory, in which
PES and other conservation incentives
may be implemented, that are not regis-
tered in the Single Registry of National
Protected Areas (RUNAP in Spanish).
Principles and institutional framework
Decree 1076/2015.
Environmental licensing regime according
to the time in which the activity began.
Environmental Licensing
Water
Law 373 of 1997.
Establishes the program for the efficient
use and saving of the water.
Decree 1541 of 1978 (compiled in De-
cree 1076/2015).
Use of non-marine waters - concessions.
Decree 155 of 2004 (compiled in Decree
1076/2015).
Regulates the rates for use of water and
other provisions.
Decree 1575 of 2007.
Establishes the system for the protection
and control of the quality of water for
human consumption.
Decree 3930 of 2010 (compiled in De-
cree 1076/2015).
Use of water and liquid waste - discharge
permits.
Decree 2667 of 2012 (compiled in De-
cree 1076/2015).
Regulates the rates of remuneration for
the direct and indirect use of water as a
receiver of specific discharges.
Resolution 2115 of 2007.
Characteristics, basic instruments and
frequencies of the control and monitoring
system for the quality of water for human
consumption are indicated.
Resolution 0631 of 2015.
Establishes the maximum permissible
parameters and limit values in the specific
discharges to surface water bodies and
public sewer systems.
Air
Decree 948 of 1995 (compiled in Decree
1076/2015).
Prevention and control of air pollution and
protection of air quality.
Resolution 619 of 1997.
Partly establishes the factors from which
emission permit is required for stationary
sources.
Resolution 909 of 2008.
Establishes the norms and admissible
emission standards of pollutants to the
atmosphere for stationary sources.
Standard Regulated TopicRegulatory framework
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Resolución 1541 de 2013.
Niveles permisibles de inmisión y la eva-
luación de emisiones de olores ofensivos.
Resolución 629 de 2006.
Establece la norma nacional de emisión
de ruido y ruido ambiental.
Ley 388 de 1997.
Desarrollo territorial, que incluye el
componente ambiental como base para el
ordenamiento del territorio.
Decreto 1791 de 1996
(compilado en el Decreto 1076 de
2015).
Régimen de aprovechamiento forestal.
Decreto 1608 de 1978.
Reglamenta el código Nacional de los
Recursos Naturales y la Ley 23 de 1973
en materia de fauna silvestre
Decreto 309 de 2000 (compilado en
Decreto 1076 de 2015).
Reglamenta la investigación científica
sobre diversidad biológica.
Ley 55 de 1993.
Seguridad en la utilización de los produc-
tos químicos en el trabajo.
Decreto 1609 de 2002 (compilado en el
Decreto 1079 de 2015).
Reglamenta el manejo y transporte terres-
tre automotor de mercancías peligrosas
por carretera.
Ley 697 de 2001.
Uso racional y eficiente de la energía,
se promueve la utilización de energías
alternativas.
Decreto 3450 de 2008.
Dicta medidas tendientes al uso racional y
eficiente de la energía eléctrica.
Resolution 910 of 2008.
Regulates the permissible emission levels
of pollutants to be met by land mobile
sources.
Resolution 935 of 2011.
Establishes methods for the evaluation of
pollutant emissions by stationary sources
and determines the number of tests or
runs for the contaminants measurement for
stationary sources.
Scents
Noise
Soil
Forest Utilization
Wildlife (fauna)
Waste and hazardous waste
Chemical substances
Energy
Ley 9 de 1979. Dicta medidas sanitarias.
Ley 142 de 1994.
Establece el régimen de los servicios
públicos domiciliarios.
Ley 1252 de 2008.
Normas prohibitivas en materia ambien-
tal, referentes a los desechos peligrosos.
Decreto 4741 de 2005 (compilado en
Decreto 1076 de 2015).
Gestión integral de desechos y residuos
peligrosos.
Decreto 2981 de 2013. Prestación del servicio público de aseo.
Resolución 1362 de 2007.
Establece los requisitos y el procedimiento
para el registro de generadores de resi-
duos o desechos peligrosos.
Standard Regulated TopicStandard Regulated Topic
24 25
L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A
Penal Code.
Contemplates crimes against the environ-
ment.
Law 1259 de 2008.
Sets in the national territory the appli-
cation of the environmental fines to the
violators of the rules of debris cleaning
and collection.
Law 1333 of 2009.
Establishes the environmental sanction
procedure.
Law 1453 of 2011.
Reforms the Penal Code, the Criminal
Procedure Code, the Children and Adoles-
cents Code and the rules on extinction of
dominion.
Resolution 2086 of 2010.
Methodology for the appraisal of fines set
forth in article 40 of Law 1333.
Environmental Sanctions
26 27
L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A
Helping clients overcome the challenges of compe-
ting in the global economy
Baker McKenzie is a global law firm with leading
local capabilities in Latin America. Since our pionee-
ring entry into Caracas over six decades ago, we
have witnessed the transformation of Latin America.
In Colombia, we are the leading international law
firm in terms of financial growth over the past three
years. We go beyond the traditional areas of law
and focus on industry groups led by renowned ex-
perts in each of our clients’ sectors. We are com-
mitted to training our lawyers to deliver pragma-
tic, business-focused advice tailored to our client’s
growth strategies.
Baker McKenzie’s well-established global presence
allows us to collaborate beyond borders. We work
with colleagues across the world’s major financial
centers, while our clients benefit from exceptional
legal and business advice.
Over the years, our Firm has demonstrated a solid
commitment to diversity and inclusion, innovation,
and pro bono work. Our Corporate Social Respon-
sibility programs allow us to give back to our com-
munities and collaborate with clients that share the
same commitment to social justice.
Partners
Tatiana Garcés Carvajal
Managing Partner Labor and compensation
Jaime Trujillo Caicedo
Partner - M&A / Private Equity
Carolina Pardo Cuellar
Partner Antitrust and competition
Alejandro Mesa Neira
Partner Mining, Energy, Infrastructure
Claudia Benavides Galvis
Partner Dispute resolution
Ciro Meza Martínez
Partner Tax
Evelyn Romero
Partner Labor and compensation
Andrés Crump
Partner M&A / Private equity
Juan Pablo Concha
Partner Intellectual property
Juan Felipe Vera Cardona
Partner M&A / Private equity
Cristina Mejía
Partner Dispute resolution
Rodrigo Castillo Cottin
Partner Tax
Areas of practice
- Antitrust and competition
- Real Estate
- Corporate
- Tax
- Compliance
- Labor & Compensation
- Criminal Law		
- Dispute resolution
- Energy / Mining / Infrastructure
- Reorganizations
- Technology, Media & Telecommunications
- Mergers & Acquisitions
Our Industry Groups
- Financial Institutions
- Energy, Mining, Infrastructure
- Healthcare
- Technology, Media and Telecommunications
- Consumer Goods and Retail
- Industrials, manufacture and transportation
Contact info
Baker McKenzie S.A.S
Av. Calle 82 No 10-62 piso 7
Bogota
Tel: 571 634 15 00
Fax: 571 376 22 11
www.bakermckenzie.com
LinkedIn: bakermckenziecolombia
We help our clients navigate a constantly
changing and challenging market, with a
new type of thinking and a different
mindset.
We call it The New Lawyer.
www.bakermckenzie.com
bakermckenziecolombia
28 29
L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A
The information provided by PROCOLOMBIA in this brochure should not be considered as investment advice.
PROCOLOMBIA does not replace the management bodies of the Investor when making decisions about their
investments and does not guarantee results. The Investor remains solely responsible for its decisions, actions,
compliance with applicable laws, rules and regulations.
* PROCOLOMBIA´S COVERAGE IN OTHER COUNTRIES
PROCOLOMBIA
IN THE WORLD
GERMANY AUSTRIA, DENMARK, SLOVAKIA, SLOVENIA, HOLLAND, HUNGARY, POLAND, CZECH REPUBLIC, SWITZERLAND / ARGENTINA
PARAGUAY, URUGUAY / CARIBBEAN PUERTO RICO, DOMINICAN REPUBLIC, TRINIDAD AND TOBAGO, CUBA, ANTIGUA AND BARBUDA,
THE BAHAMAS, BARBADOS, DOMINICA, GRENADA, GUYANA, HAITI, JAMAICA, MONTSERRAT, SAINT LUCIA, ST. KITTS AND NEVIS, ST. VINCENT
AND THE GRENADINES, SURINAME, ARUBA, CURACAO, ST. MARTIN, BONAIRE, ST. EUSTAQUIO, SABA, GUADALUPE, MARTINICA, GUYANA
FRANCESA, ST. BARTHELEMY, ANGUILLA, BERMUDA, BRITISH VIRGIN ISLANDS.
CAYMAN ISLANDS, TURKS AND CAICOS ISLANDS / CHINA HONG KONG / SOUTH KOREA PHILIPPINES, MONGOLIA / COSTA RICA PANAMA,
NICARAGUA / UNITED ARAB EMIRATES SAUDI ARABIA, BAHRAIN, QATAR, KUWAIT, OMAN / SPAIN ITALY, PORTUGAL, ANGOLA, MOZAMBIQUE /
FRANCE BELGIUM, MOROCCO, ARGELIA, SENEGAL, TUNISIA / GUATEMALA EL SALVADOR, HONDURAS, BELIZE / INDIA ISRAEL / INDONESIA
MALAYSIA, NEW ZEALAND, THAILAND, VIETNAM, AUSTRALIA / JAPAN TAIWAN, SINGAPORE / PERU BOLIVIA / UNITED KINGDOM FINLAND,
IRELAND, NORWAY, SWEDEN, GHANA, KENYA, NIGERIA, SOUTH AFRICA / RUSSIA BELARUS, KAZAKHSTAN / TURKEY GREECE, MACEDONIA.
* PROCOLOMBIA´S COVERAGE IN OTHER COUNTRIES
PROCOLOMBIA
IN THE WORLD
GERMANY AUSTRIA, DENMARK, SLOVAKIA, SLOVENIA, HOLLAND, HUNGARY, POLAND, CZECH REPUBLIC, SWITZERLAND / ARGENTINA
PARAGUAY, URUGUAY / CARIBBEAN PUERTO RICO, DOMINICAN REPUBLIC, TRINIDAD AND TOBAGO, CUBA, ANTIGUA AND BARBUDA,
THE BAHAMAS, BARBADOS, DOMINICA, GRENADA, GUYANA, HAITI, JAMAICA, MONTSERRAT, SAINT LUCIA, ST. KITTS AND NEVIS, ST. VINCENT
AND THE GRENADINES, SURINAME, ARUBA, CURACAO, ST. MARTIN, BONAIRE, ST. EUSTAQUIO, SABA, GUADALUPE, MARTINICA, GUYANA
FRANCESA, ST. BARTHELEMY, ANGUILLA, BERMUDA, BRITISH VIRGIN ISLANDS.
30
LEGAL
GUIDE
2019

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Capitulo 8 legal_guide_compressed

  • 1. T O D O B U S I N E S S I N C O L O M B I A LEGAL GUIDE 2019
  • 2. 3 CONTENT Introduction Chapter No. 1 Chapter No. 2 Chapter No. 3 Chapter No. 4 Chapter No. 5 Chapter No. 6 Chapter No. 7 Chapter No. 8 Chapter No. 9 Chapter No. 10 Chapter No. 11 Chapter No. 12 Protection to foreign investment Foreign Exchange Regime Corporate Regulations Foreign Trade And Customs Labor Regime Immigration Regime Colombian Tax Regime Colombian Environmental Regime Intellectual Property Real Estate Government Procurement Accounting Regulations For Companies
  • 3. 4 5 L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A INTRODUCTION Colombia is a democratic country, with a privileged and strategic location in La- tin America. It is rich in natural resources and is at present time one of the main in- vestment destinations in the region mainly because of its commercial opportunities and its legal stability. All of this has con- tributed to Colombia having one of the top progress, not only economic but also cultural, in investment and development, compared to the rest of the region. In the last decade, Colombia’s GDP grow- th rate has exceeded the world average, and in recent years the country has shown great economic stability, mainly by the use of sensible economic policies in con- nection with challenging situations, which have managed to maintain low inflation levels. Even, the principal risk rating agencies have maintained Colombia in stable confidence indices. Procolombia in association with Baker & Mckenzie have prepared this Legal Guide to do Business in Colombia (the “Guide”) to provide foreign investors guidelines on the main legal aspects. The content of this document was prepared and updated in March 2019, based entirely on the cu- rrent information and legislation. Warning The purpose of this document is purely informative. The Guide is not intended to provide legal advice. Therefore, those using this Guide shall not be entitled to bring any claim or action against Baker McKenzie or ProColombia, their respecti- ve directors, officers, employees, agents, advisors or consultants arising from any expense or cost incurred into or for any commitment or promise made based on the information contained in this Guide. Neither shall they be entitled to indemnifi- cations from Baker McKenzie nor ProCo- lombia, for decisions made based on the contents or the information provided in this Guide. We strongly advise that investors and in general readers who make use of the Gui- de, consult their own legal advisors and professional consultants regarding invest- ment in Colombia. On the figures on this Guide The figures used on this Guide have been determined as follows: (i) the figures ex- pressed in US dollars have been calcula- ted using an exchange rate of COP 3000 = USD 1; and (ii) for those based on the current minimum legal monthly wage (MLMW) in Colombia, the MLMW for the year 2019 is COP $828,116 (approx. USD 276). The foreign exchange rate changes daily with the supply and demand for currency and the MLMW is adjusted at the end of every calendar year (December) for the following year. We hope that this Guide will be of great use for your investment in Colombia.
  • 4. 6 7 L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A Ta t a c o a D e s e r t , H u i l a C O L O M B I A N E N V I R O N M E N T A L R E G I M E CHAPTER
  • 5. 8 9 L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A COLOMBIAN ENVIRONMENTAL REGIME Four things an investor should know about the environmental regime: 1. In Colombia, there is a National En- vironmental System (SINA in Spanish), which consists mainly of the following bodies: (a) Ministry of Environment and Sustainable Development (MADS in Spanish) as the national environmen- tal authority; (b) Regional Autonomous Corpora- tions (CARs in Spanish) and Urban Environmental Authorities (AAU in Spanish); (c) National Environmental Licensing Authority (ANLA in Spanish) and (d) Scientific Entities Attached and Re- lated to the Ministry of Environment. 2. Likewise, there is a National System of Protected Areas (SINAP in Span- ish), which is a set of protected areas, social actors and management strat- egies and instruments that articulate them, to contribute as a whole to the fulfillment of the country’s conservation objectives1 . Depending on the type or protected area, the development of projects, works or industrial activities shall be prohibited or restricted. Ac- cording to the applicable regulations, the protected areas are divided into2 : 1. Public protected areas: a) Sistema de Parques Nacionales Naturales b) Reservas Forestales Protectoras c) Parques Naturales Regionales d) Distritos de Manejo Integrado e) Distritos de Conservación de Sue- los f) Áreas de Recreación 2. Private protected areas: Natural Reserves of Civil Society 3. Projects, works or activities that may cause a deterioration of the environ- ment, or introduce significant or noto- rious modifications to the landscape, must obtain an environmental license. These projects, works or activities, are exhaustively established in the law. The environmental license will imply all the permits, authorizations and/or concessions for the use and/or affecta- tion of the renewable natural resources that are necessary for the useful life of the project, work or activity. 4. When planning to develop a proj- ect in territories classified as ancestral territories, where indigenous, gypsy (ROM in Spanish), raizal and/or af- ro-Colombian communities are locat- ed, the prior consultation process with those communities should be carried out, with the purpose to present and analyze the impact of the project from an economic, environmental, social and cultural point of view. Colombia has a broad environmental legislation and international instruments, which guarantee, as a duty of the State and of the people, the protection of: (i) The natural wealth of the Nation, with which we have the right to enjoy a healthy environment. (ii) The existence of ecological ba- lance and the rational management and use of natural resources. (iii) Public safety and health. (iv) Disaster prevention. With the above, it seeks to ensure: - Sustainable development. - The diversity preservation and envi- ronment integrity. - Natural resources, landscape and human health protection. - Areas of special ecological impor- tance preservation. - Planning, management and rational use of natural resources. The following is a brief summary of the most relevant aspects, for a foreign inves- tor, of environmental regulations and ins- titutions in Colombia. 8.1. Environmental Licensing Re- gime Works execution, industries establishment or the development of activities that can generate impacts to the environment, pro- duce deterioration of renewable natural resources or introduce significant or noto- rious modifications to the landscape, will require an environmental license. The au- thorities competent to grant environmental licenses are: a) National Authority for Environmen- tal Licenses (ANLA), b) Regional Autonomous Corpora- tions (CARs) and those of Sustainable Development, who may delegate the exercise of this competence to territo- rial entities c) Environmental authorities created by law 768/2002. . Through the environmental license, the execution of a project, work or activity is authorized, and is subject to the imple- mentation of prevention, mitigation, co- rrection, compensation and management of the environmental measures for the ge- nerated effects. As a general rule, only the works, projects or activities expressly indicated in the current regulations requi- re an environmental license , which must be granted prior to the development of the same. The environmental license must be obtai- ned through an administrative procedure, which starts with the presentation of an Environmental Diagnosis of Alternatives (DAA in Spanish), (unless the competent environmental authority certifies that the study is not required), in which the infor- mation required to evaluate and compare the different alternatives under which it is possible to develop the project, work or activity is presented. In addition to the DAA, the applicant for the environmental 1 Source: http://www.parquesnacionales.gov.co/portal/es/sistema-nacional-de-areas-protegi- das-sinap/ on February 2019. 2 Decree 1076/2015
  • 6. 10 11 L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A license must submit an Environmental Im- pact Assessment (EIA in Spanish), which shall include the information detailed in the applicable regulation, including the respective Environmental Management Plans (PMA in Spanish), which must be prepared based on the general terms of reference published by the Ministry of En- vironment and Sustainable Development, or terms of reference developed by the Aspect Permit Description Validity Air Atmospheric emissions permit The emission of gases to the atmosphere, either by stationary or mobile sources, is regulated as well as the emission of noise and offen- sive odors. In some cases the permit for atmospheric emissions will be required. In general, the project, work or activity that emits gases into the atmosphere, must comply with the permissible limits established in the law for the type of industry or activity. The permit must identify the type of project to be carried out, the authorized emission and the quantity and quality that characterize it. Maximum 5 years. Figure 1. Environmental licensing process competent environmental authority for a specific project or activity. See Figure 1. In no event, the same project, work or activity will require more than one envi- ronmental license. For the development of projects, works and activities related to mining and hydrocarbons, the compe- tent environmental authority will grant a global environmental license covering the entire area of exploitation requested. The validity of the environmental license will be equal to the duration of the project. According to the law, the environmental licensing process could take approxima- tely 110 working days, plus the terms es- tablished to correct any shortcomings that may arise. Decree 1076/2015, includes an oral hearing meeting with the competent en- vironmental authority, where the required information shall be requested just once and the project that is planned to develop is presented. At that hearing, the quality criteria applicable to environmental stu- dies should be established. In addition, it seeks to bring the interested parties clo- ser: environmental authority and license applicant, which expedites the process of environmental licenses in Colombia. The interested party must pay for the re- quests of environmental procedures eva- luation services according to tariffs set by the Government and submit semiannual reports of environmental compliance, which are used by the environmental au- thority to monitor them. 8.2. Environmental permits Independently of obtaining an environ- mental license, some projects, works or activities, require specific environmental permits as established by the law, based on the characteristics of each and their environment impacts. When these permits are part of the en- vironmental license, the environmental authority that granted the environmen- tal license is the authority competent to exercise control and follow-up activities on such permits. When these permits are not part of an environmental license, they are granted by the Regional Autonomous Corporations with jurisdiction in the pro- ject area. These permits are: 1 1 0 B U S I N E S S D A Y ST o t a l t i m e - EIA filing with environ- mental authority. - Immediately begins the process of environmental license. - Meeting and oral hearing with environ- mental authority and single request for additional information. - Request to other entities for technical concepts or relevant information. - Field visit and EIA evaluation. - Provide such informa- tion. - Environmental license grant. - Provide requested information. 20 business days 10 business days 20 business days 10 business days 20 business days 30 business days
  • 7. 12 13 L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A Concessions Grants the right to use and take water from surface bodies and/or underground wells. In general terms, the validity of these permits will be of ten years, and exceptionally up to fifty years for works destined to the provision of public services or services necessary for the construction of works of social interest. Maximum 10 years Maximum 50 years Dump permits Grants the right to carry out verifications in water bodies. The permit will be granted according to the project cha- racteristics, but in no case may exceed ten years. Maximum 10 years Infiltration permits The infiltration of liquid waste into the soil associated with an aquifer requires discharge permits. Maximum 10 years Channels occu- pation In the event that it is necessary to intervene a channel, it will be required the permission of occupation. It will be necessary to advance the construction and operation of hydraulic works for the defense and con- servation of lands, riverbeds and marginal slopes of rivers, streams and other bodies of water. Not established Prospecting and Explora- tion It will be necessary to obtain a permit for exploration of wells and groundwater exploration in the event that it is intended to explore the subsoil in search of groundwater. Maximum 1 year Exploitation of trawling and quarrying materials Any activity that requires the exploitation of trawling mate- rial from the channels or beds of water streams or reservoirs is subject to the respective permit to exploit trawls. Maximum 6 months Water Waste and hazardous waste Forest utiliza- tion It requires the permission of forest advantage in the event in which it is tried to extract products of a forest for the ac- complishment of any activity, or when it is wanted to take advantage of isolated trees. It will be set according to specific cha- racteristics Deforestation and pruning permit Permission will be required for the cutting or pruning of trees and for the management and transportation of extracted species. Not establi- shed Forest utili- zation Forest in- dustries and companies register All forest companies must ob- tain permission to use natural resources. Does not apply Safe passage It must have a unique national pass for the mobilization of flora specimens. Only 1 time Natural forests study A permit is required for the natural forests and wild flora study, whose purpose is to project works or works for their future use. Maximum 2 years Forest utili- zation Aspect Permit Description Validity Aspect Permit Description Validity
  • 8. 14 15 L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A Wildlife (fau- na) harnessing Any project that involves the use of wildlife and its pro- ducts can only be done by permission, authorization or license. Maximum 1 tear Scientific Research in Diversity Any scientific research project on biological diversity, collec- tion, capture, hunting, fishing, manipulation of the biological resource and its mobilization in the national territory, must obtain study permits. Maximum 2 years Soil Intervention on the archaeolo- gical heritage authorization In order to carry out actions in which the archaeological heritage of the Nation is invol- ved or can intervene, autho- rization for exploration and/ or archaeological excavation must be requested. During the intervention Wildlife (fauna) 8.3. Consultations with indige- nous, raizal, gypsy and Afro-Co- lombian communities In the event that any projects, works or activities are going to be done in the terri- tories of indigenous, afro-Colombian, rai- zal or gypsy communities or in ancestral territories of these communities, it will be necessary to carry out a prior consultation process, through which the economic, en- vironmental, social and cultural impacts, are evaluated, in order to guarantee the participation of communities in the use, management and conservation of natural resources. This consultation is an essential requirement in the environmental licen- sing process. The Directorate of Prior Consultation of the Ministry of the Interior is the authority responsible for matters relating to prior consultations with ethnic communities. According to the jurisprudence, the fun- damental and constitutional right of the indigenous communities to be consulted is susceptible of being protected by means of a special and preferred judicial action denominated the guardianship action. It is important to clarify that, the consent of the communities is not obligatory for the project to be viable. However, there must be evidence of a good faith effort on the part of the interested party in the envi- ronmental licensing, of wanting to reach an agreement with these communities. 8.4. Protected areas Colombia has a National System of Pro- tected Areas (SINAP in Spanish), which guarantees the conservation of the most valuable resources of the country and contributes to the environmental and terri- torial ordering. This system is made up of different kinds of environmentally protec- ted areas, including the public protected areas, among which there are mainly the national natural parks, regional natural parks, protecting forest reserves and inte- grated management districts, and private protected areas such as the natural reser- ves of civil society. The SINAP and the forest reserves cover more than 10% of Colombia’s land area. That is why it is important to take into account the protection regime of these areas, especially for the extractive indus- try, because their management or zoning plans provide restrictions or prohibitions for these activities. As a general rule, all extractive activities are prohibited in natural parks (national and regional), which are one of SINAP’s most stringent conservation categories. Likewise, they are prohibited in forest re- serves, but some of these reserves (those created by Law 2 of 1959) may be sub- ject to the removal of a temporary or defi- nitive area, to allow activities considered to be of public or social interest, such as Mining and oil industry. Due to the above mentioned, it is impor- tant to perform due diligence in the areas in which projects will be executed, so the investment that is intended to be done would not be in risk. See Figure 2. Aspect Permit Description Validity
  • 9. 16 17 L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A 8.5. Main environmental regula- tory and control institutions 8.5.1. Environment and Sus- tainable Development Ministry (MADS in Spanish) It is the entity in charge of managing the country’s environmental policy and pro- moting the conservation of renewable natural resources in a sustainable deve- lopment framework. This entity defines the programs, policies and regulations to which the recovery, conservation, protec- tion, management and use of renewable natural resources and the environment shall be subject. Likewise, the Ministry is in charge of the National Environmental System coordination. 8.5.2. National Authority for Envi- ronmental Licenses (ANLA in Spa- nish) It is a special administrative unit, of the national order, in charge of granting and monitoring the environmental licenses for projects, works or activities subject to li- censing, permits or environmental proce- dures. 8.5.3. Regional Autonomous Cor- porations and Sustainable Develo- pment (CAR in Spanish) and Urban Environmental Authorities (AAU in Spanish) They are public entities created by the law, integrated by the territorial entities that due to their characteristics constitute the same ecosystem or form a geopoliti- cal, biogeographic or hydro geographic unit, vested with administrative and finan- cial autonomy, own resources and legal capacity. They are in charge of mana- ging, within the area of their jurisdiction, the environment and renewable natural resources and their sustainable develop- ment. See Figure 3. Figure 2. Protected areas in Colombia Adapted from: SINAP, 2018
  • 10. 18 19 L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A Figure 3. Regional Autonomous Corporations Jurisdiction Adapted from: Asocar, 2017 8.5.4. Hydrology, Meteorology and Environmental Studies Ins- titute (IDEAM in Spanish) It is responsible for the collection and management of specialized information on the different ecosystems found in the country. Sets the technical parameters to promote the proper land use within the context of land use planning. It is res- ponsible for collecting, processing, inter- preting and making public hydrological, meteorological and geographic data on biophysical aspects, geomorphology, soi- ls and vegetation cover, for the proper management and rational use of the na- tural resources of the country. 8.6. Administrative liability and environmental sanctioning regime Any violation or omission in an environ- mental matter is considered to be an in- fraction that: - Constitutes a violation of the rules con- tained in the Renewable Natural Re- sources Code. - Constitutes a violation in the other ex- isting legal environmental provisions. - Constitutes a violation of administra- tive acts from the competent environ- mental authority. - Constitutes damage to the environment (whenever there is damage, a genera- tive event with guilt or fraud and a caus- al link between the two. The guilt of the alleged offender is presu- med, and it corresponds to him, to prove that he did not act with guilt or fraud. In addition to the administrative sanction, the offender may respond civilly to third parties for the damages that the act or omission would have caused. In accordance with the environmental sanctioning regime, in case that the alle- ged offender is liable, the environmental authority may impose the following sanc- tions: - Impose daily fines of up to 5,000 MMLW. (COP $3.906.210.000 Approx. USD $1,302,070). - Generate revocation or expiration of the environmental license or permit. - Temporary or permanent closure of the establishment, and demolition of works as a preventive measure. The imposition of a sanction does not re- lease the offender from compliance with the measures considered relevant by the competent environmental authority to compensate and restore the damage or the impact caused by the infringement. The environmental authority is empowe- red to impose preventive measures, which aim at avoiding or preventing the occurrence of a fact, the performance of the activity or the existence of a situation threatening the environment or health. These and other preventive measures can be imposed by an administrative act. Pur- suant to the environmental sanctioning re- gime, the preventive measures are: a) Written warning: b) Preventive seizure of wildlife pro- ducts, elements and byproducts; c) suspension of the work or activity when it may cause a damage or danger to the environment, natural resources, landscape or human health or when the project has been started without permission, concession, autho- rization or environmental license or in violation thereof. Regional Autonomous Corporations
  • 11. 20 21 L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A Standard Regulated Topic Principles and institutional framework Political constitution. Right of all people to a healthy environ- ment. Law 99 of 1993. Contains the basic principles and creates the environmental institutionalism through the National Environmental System (SINA in Spanish). Law 753 of 2015. National Development Plan (2014 - 2018) - establishes mechanisms of integral intervention in rural territories. Decree Law 2811 of 1974. Code of Renewable Natural Resources - establishes detailed rules on the ma- nagement of certain renewable natural resources such as forests, soils, water and the atmosphere. Right of all people to a healthy environment. Decree 1076 of 2015. Single Regulatory Decree of the Environ- ment Sector and Sustainable Development (compiles all the Colombian environmental regulations 2015). Decree 1299 of 2008 (compiled in De- cree 1076/2015). Creates the obligation, under certain circumstances, to have an Environmental Management Department in certain com- panies at an industrial level. Decree 2372 of 2010 (compiled in De- cree 1076/2015). Regulates the SINAP. Resolution 415 of 2010. Regulates the Single Registry of Environ- mental Offenders (RUIA in Spanish). Resolution 870 of 2017. Establishes the Payment for Environmental Services (PES in Spanish) and other incen- tives for conservation. Resolution 097 of 2017. Creates the Single Registry of Ecosystems and Environmental Areas (REAA in Spa- nish), whose objective is to identify and prioritize ecosystems and environmental areas of the national territory, in which PES and other conservation incentives may be implemented, that are not regis- tered in the Single Registry of National Protected Areas (RUNAP in Spanish). Principles and institutional framework Decree 1076/2015. Environmental licensing regime according to the time in which the activity began. Environmental Licensing Water Law 373 of 1997. Establishes the program for the efficient use and saving of the water. Decree 1541 of 1978 (compiled in De- cree 1076/2015). Use of non-marine waters - concessions. Decree 155 of 2004 (compiled in Decree 1076/2015). Regulates the rates for use of water and other provisions. Decree 1575 of 2007. Establishes the system for the protection and control of the quality of water for human consumption. Decree 3930 of 2010 (compiled in De- cree 1076/2015). Use of water and liquid waste - discharge permits. Decree 2667 of 2012 (compiled in De- cree 1076/2015). Regulates the rates of remuneration for the direct and indirect use of water as a receiver of specific discharges. Resolution 2115 of 2007. Characteristics, basic instruments and frequencies of the control and monitoring system for the quality of water for human consumption are indicated. Resolution 0631 of 2015. Establishes the maximum permissible parameters and limit values in the specific discharges to surface water bodies and public sewer systems. Air Decree 948 of 1995 (compiled in Decree 1076/2015). Prevention and control of air pollution and protection of air quality. Resolution 619 of 1997. Partly establishes the factors from which emission permit is required for stationary sources. Resolution 909 of 2008. Establishes the norms and admissible emission standards of pollutants to the atmosphere for stationary sources. Standard Regulated TopicRegulatory framework
  • 12. 22 23 L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A Resolución 1541 de 2013. Niveles permisibles de inmisión y la eva- luación de emisiones de olores ofensivos. Resolución 629 de 2006. Establece la norma nacional de emisión de ruido y ruido ambiental. Ley 388 de 1997. Desarrollo territorial, que incluye el componente ambiental como base para el ordenamiento del territorio. Decreto 1791 de 1996 (compilado en el Decreto 1076 de 2015). Régimen de aprovechamiento forestal. Decreto 1608 de 1978. Reglamenta el código Nacional de los Recursos Naturales y la Ley 23 de 1973 en materia de fauna silvestre Decreto 309 de 2000 (compilado en Decreto 1076 de 2015). Reglamenta la investigación científica sobre diversidad biológica. Ley 55 de 1993. Seguridad en la utilización de los produc- tos químicos en el trabajo. Decreto 1609 de 2002 (compilado en el Decreto 1079 de 2015). Reglamenta el manejo y transporte terres- tre automotor de mercancías peligrosas por carretera. Ley 697 de 2001. Uso racional y eficiente de la energía, se promueve la utilización de energías alternativas. Decreto 3450 de 2008. Dicta medidas tendientes al uso racional y eficiente de la energía eléctrica. Resolution 910 of 2008. Regulates the permissible emission levels of pollutants to be met by land mobile sources. Resolution 935 of 2011. Establishes methods for the evaluation of pollutant emissions by stationary sources and determines the number of tests or runs for the contaminants measurement for stationary sources. Scents Noise Soil Forest Utilization Wildlife (fauna) Waste and hazardous waste Chemical substances Energy Ley 9 de 1979. Dicta medidas sanitarias. Ley 142 de 1994. Establece el régimen de los servicios públicos domiciliarios. Ley 1252 de 2008. Normas prohibitivas en materia ambien- tal, referentes a los desechos peligrosos. Decreto 4741 de 2005 (compilado en Decreto 1076 de 2015). Gestión integral de desechos y residuos peligrosos. Decreto 2981 de 2013. Prestación del servicio público de aseo. Resolución 1362 de 2007. Establece los requisitos y el procedimiento para el registro de generadores de resi- duos o desechos peligrosos. Standard Regulated TopicStandard Regulated Topic
  • 13. 24 25 L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A Penal Code. Contemplates crimes against the environ- ment. Law 1259 de 2008. Sets in the national territory the appli- cation of the environmental fines to the violators of the rules of debris cleaning and collection. Law 1333 of 2009. Establishes the environmental sanction procedure. Law 1453 of 2011. Reforms the Penal Code, the Criminal Procedure Code, the Children and Adoles- cents Code and the rules on extinction of dominion. Resolution 2086 of 2010. Methodology for the appraisal of fines set forth in article 40 of Law 1333. Environmental Sanctions
  • 14. 26 27 L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A Helping clients overcome the challenges of compe- ting in the global economy Baker McKenzie is a global law firm with leading local capabilities in Latin America. Since our pionee- ring entry into Caracas over six decades ago, we have witnessed the transformation of Latin America. In Colombia, we are the leading international law firm in terms of financial growth over the past three years. We go beyond the traditional areas of law and focus on industry groups led by renowned ex- perts in each of our clients’ sectors. We are com- mitted to training our lawyers to deliver pragma- tic, business-focused advice tailored to our client’s growth strategies. Baker McKenzie’s well-established global presence allows us to collaborate beyond borders. We work with colleagues across the world’s major financial centers, while our clients benefit from exceptional legal and business advice. Over the years, our Firm has demonstrated a solid commitment to diversity and inclusion, innovation, and pro bono work. Our Corporate Social Respon- sibility programs allow us to give back to our com- munities and collaborate with clients that share the same commitment to social justice. Partners Tatiana Garcés Carvajal Managing Partner Labor and compensation Jaime Trujillo Caicedo Partner - M&A / Private Equity Carolina Pardo Cuellar Partner Antitrust and competition Alejandro Mesa Neira Partner Mining, Energy, Infrastructure Claudia Benavides Galvis Partner Dispute resolution Ciro Meza Martínez Partner Tax Evelyn Romero Partner Labor and compensation Andrés Crump Partner M&A / Private equity Juan Pablo Concha Partner Intellectual property Juan Felipe Vera Cardona Partner M&A / Private equity Cristina Mejía Partner Dispute resolution Rodrigo Castillo Cottin Partner Tax Areas of practice - Antitrust and competition - Real Estate - Corporate - Tax - Compliance - Labor & Compensation - Criminal Law - Dispute resolution - Energy / Mining / Infrastructure - Reorganizations - Technology, Media & Telecommunications - Mergers & Acquisitions Our Industry Groups - Financial Institutions - Energy, Mining, Infrastructure - Healthcare - Technology, Media and Telecommunications - Consumer Goods and Retail - Industrials, manufacture and transportation Contact info Baker McKenzie S.A.S Av. Calle 82 No 10-62 piso 7 Bogota Tel: 571 634 15 00 Fax: 571 376 22 11 www.bakermckenzie.com LinkedIn: bakermckenziecolombia We help our clients navigate a constantly changing and challenging market, with a new type of thinking and a different mindset. We call it The New Lawyer. www.bakermckenzie.com bakermckenziecolombia
  • 15. 28 29 L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A L E G A L G U I D E T O D O B U S I N E S S I N C O L O M B I A The information provided by PROCOLOMBIA in this brochure should not be considered as investment advice. PROCOLOMBIA does not replace the management bodies of the Investor when making decisions about their investments and does not guarantee results. The Investor remains solely responsible for its decisions, actions, compliance with applicable laws, rules and regulations. * PROCOLOMBIA´S COVERAGE IN OTHER COUNTRIES PROCOLOMBIA IN THE WORLD GERMANY AUSTRIA, DENMARK, SLOVAKIA, SLOVENIA, HOLLAND, HUNGARY, POLAND, CZECH REPUBLIC, SWITZERLAND / ARGENTINA PARAGUAY, URUGUAY / CARIBBEAN PUERTO RICO, DOMINICAN REPUBLIC, TRINIDAD AND TOBAGO, CUBA, ANTIGUA AND BARBUDA, THE BAHAMAS, BARBADOS, DOMINICA, GRENADA, GUYANA, HAITI, JAMAICA, MONTSERRAT, SAINT LUCIA, ST. KITTS AND NEVIS, ST. VINCENT AND THE GRENADINES, SURINAME, ARUBA, CURACAO, ST. MARTIN, BONAIRE, ST. EUSTAQUIO, SABA, GUADALUPE, MARTINICA, GUYANA FRANCESA, ST. BARTHELEMY, ANGUILLA, BERMUDA, BRITISH VIRGIN ISLANDS. CAYMAN ISLANDS, TURKS AND CAICOS ISLANDS / CHINA HONG KONG / SOUTH KOREA PHILIPPINES, MONGOLIA / COSTA RICA PANAMA, NICARAGUA / UNITED ARAB EMIRATES SAUDI ARABIA, BAHRAIN, QATAR, KUWAIT, OMAN / SPAIN ITALY, PORTUGAL, ANGOLA, MOZAMBIQUE / FRANCE BELGIUM, MOROCCO, ARGELIA, SENEGAL, TUNISIA / GUATEMALA EL SALVADOR, HONDURAS, BELIZE / INDIA ISRAEL / INDONESIA MALAYSIA, NEW ZEALAND, THAILAND, VIETNAM, AUSTRALIA / JAPAN TAIWAN, SINGAPORE / PERU BOLIVIA / UNITED KINGDOM FINLAND, IRELAND, NORWAY, SWEDEN, GHANA, KENYA, NIGERIA, SOUTH AFRICA / RUSSIA BELARUS, KAZAKHSTAN / TURKEY GREECE, MACEDONIA. * PROCOLOMBIA´S COVERAGE IN OTHER COUNTRIES PROCOLOMBIA IN THE WORLD GERMANY AUSTRIA, DENMARK, SLOVAKIA, SLOVENIA, HOLLAND, HUNGARY, POLAND, CZECH REPUBLIC, SWITZERLAND / ARGENTINA PARAGUAY, URUGUAY / CARIBBEAN PUERTO RICO, DOMINICAN REPUBLIC, TRINIDAD AND TOBAGO, CUBA, ANTIGUA AND BARBUDA, THE BAHAMAS, BARBADOS, DOMINICA, GRENADA, GUYANA, HAITI, JAMAICA, MONTSERRAT, SAINT LUCIA, ST. KITTS AND NEVIS, ST. VINCENT AND THE GRENADINES, SURINAME, ARUBA, CURACAO, ST. MARTIN, BONAIRE, ST. EUSTAQUIO, SABA, GUADALUPE, MARTINICA, GUYANA FRANCESA, ST. BARTHELEMY, ANGUILLA, BERMUDA, BRITISH VIRGIN ISLANDS.