Social Enterprises and Benefit Corporations in Colombia

Abstract

Colombian corporate law has been at the forefront of Latin American systems for the last decade. In 2008, it introduced the simplified corporation (SC), becoming the first country in the region to adopt a hybrid company form. The Colombian legislator has also been a pioneer in the enactment of norms related to benefit corporations introduced by Law 1901 of June 18, 2018 (referred to under the law as benefit and collective interest companies (BICs). Colombian legislation has adopted a highly flexible model of a benefit and collective interest company that does not represent high transaction costs for those entrepreneurs who wish to adopt it. The BIC model has been very successful in Colombia. In fact, the growth of this business model has been exponential within the last few years. It remains to be seen if there will be a convergence between Colombian BIC companies and the few corporations that have been certified by System B in this country.