The document summarizes the delegation of business registry services in Colombia to the country's Chambers of Commerce as a private entity. It describes how the Chambers of Commerce were given legal responsibility for business registration in 1931 to improve efficiency. The decentralized but interconnected registry system is now run across 57 Chambers and provides online access to company information. The Bogota Chamber of Commerce is highlighted as the largest, registering over 5 million transactions annually and supporting over 100,000 businesses.

1. Delegation of Public Service to a Private
Entity - The Colombian Experience
Mrs. Luz Marina Rincón Martínez
CRF 11th edition | Rio de Janeiro | Brazil
March 2014

2. Colombian Case:
More than an outsourcing
a delegation by law. Registration
with chambers of commerce

3. “Most Business Registers are run by
The Government and are centralized”
- European Commerce Registers’ FORUM Report 2013

4. *European Commerce Registers’ FORUM Report 2013 - Figure 3
Who Operates the Business Registry

5. The court – based system of registration was in place before
• Faced several problems and was ineffective
• Was necessary to remove responsibility for funding
registration from the state budget
• Since 1890 the law gave the chambers
of commerce the status of trade and
consulting bodies in trade and industry
issues, to represent the general
interest of the commercial activity
before the government

6. The Colombian Constitution provides that individual
may carry out administrative functions and also
determine the legal regime applicable to individuals
who performs public functions and regulates the
exercise of their functions

7. Law 28 of 1931 transfer responsibility of the
mercantile register to the Chambers of Commerce
They have the ultimate administrative responsibility for:
• Delivery of the registration services
• Including administrative procedures associated with
starting a business
• Contact with customer
• Full authority to run the Mercantile
Registry

8. Nature of Chamber of Commerce in Colombia
• Private, associative nature and nonprofit created by
law
• Legal institutions with juridical capacity, with
statutory functions an entrusted with official
functions including registries

9. Nature of Chamber of Commerce in Colombia
• Integrated by traders registered in the commercial
register
• Apart from the public service performed, their
organization, management, nature of their
employees and the existence of statutes governing
them show their corporate, associative
and private nature

10. • 57 chambers throughout the country each one has
its own jurisdiction, responsible for the maintenance
of the Mercantile Register (MR)
• Since 2005 a national data base called RUES
(Unique Business and Social Registry - Registro
Único Empresarial y Social) was set in place
joining the 57 chambers
• This private network provides free
basic level Colombian companies
information online via RUES
Website – www.rues.org.co
Decentralized but centralized

11. Decentralized but centralized
• The RUES allows users of any jurisdiction to approach any
chamber in the country to
 acquire a certificate,
 register a new business
 perform registry changes
• The operating cost of RUES is funded by all the Chambers
• Compensation costs system remunerates services rendered
between Chambers

12. • Mandatory registration is determined by law
- Diversity of business cases subject to register
- 80/103 are related only to corporations
• Registry operation and compliance standards are
regulated
• Types of business association are defined by law
Legal framework
• Fees charged for registry services are regulated
by Goverment

13. Legal framework
• Surveillance and control is exercised through the
Superintendence of Industry and Commerce (SIC)
• The scope of examination includes to do legal checks in all of
business cases
• Claims may be filed firstly before the Chamber and
appealed before the SIC
• Further more Chambers of Commerce shall attest to the
legality of the acts proposed for registration, if law
requirements are not met the registrar can deny
registration

14. Registry
• Public by law and open to all potential agents in the market
• Interested persons may access the data base and consult all
the information supporting a registry (bylaws, acts, historic
information, etc.)
• The legislation allows to market the information only when
value is added
• Basic Information available trough RUES website

15. Measures taken to prevent corporate
identity theft via the registry
A new regulation was recently establish
1. For companies who decide to enroll in the Fraud Preventive
System (SIPREF), no acts or changes can be registered,
without previously verifying that it comes from the right
holder
2. For all companies:
a. Identity of the acting person is validated online through
biometric matching fingerprint, against the database of
the National Civil Registry
b. ID check against the National Civil Registry
c. E-monitor services that notify register user about
changes (email, sms, etc.)

16. Doing Business 2014
4th in Latin America
Doing Business Report 2014

17. Starting a Business
3. Post-registration
• Bank certificate
• Tax Payer ID
• Family compensation fund, Governmental
learning service, Colombian family institute
• Health coverage
• Pension fund
• Administrator of professional risk
• Private pension fund
• Severance fund
1. Pre-registration activities
• Public Deed (Notary public - few)
2. Registration
• Name verification
• Pre-taxpayer ID
• Registry of commerce

18. Starting a Business
15 days
Registry of Commerce + "pre-taxpayer ID"
Open a bank account
Final tax payer ID number
Family compensation fund, Governmental learning service,
Colombian family institute
Health coverage
Pension fund
Administrator of professional risk
1+2
1
1
10
6
1 - 3
1
Private pension fund1
Severance fund1
9 procedures

19. Registers managed
Mercantile
Bidders for Government Contracts
Non-profit Institutions
Foreign NGOs
National Tourism
Solidarity Economy - Cooperatives
Gamming and
Gambling Activities
Oversight and Social
Accountability Committees
Security Interest

20. 20
A look at the Bogota Chamber of
Commerce

21. 21
The Bogota Chamber of Commerce was established
on October 6, 1878, as an entity representing
the interests of businessmen and advisory body and
government consultant
135 years old

22. Jurisdiction
Bogota and 59 municipalities in
Cundinamarca

23. Main financial figures
Million US Dollars
Equity
2011 2012 2013
360
409
480

24. Main financial figures
Million US Dollars
Revenues
2011 2012 2013
69
72
80

25. Higher Purpose
25
"We are allies to make your business dream
come true, be sustainable, create shared
value and have a prosperous Bogotá – Region
with more and better businesses"

26. 13 Registry service offices
4 Entrepreneur centers
5 Community Attention Centers
1 Bogota Export program office
Our Infrastructure
9

27. Documents
are scanned
File the documents
in any branch
Certificate attests
mercantile information
OK?
Legal check by
CCB lawyer
Deny or changes
are required
Business case is
Register or/and
Identification number
is assigned
Registry Process
Start

28. Processing time for incorporations and
changes
15 days 8 labor hours
vs

29. Business Service Center
Characteristics
• Promotes the creation and establishment of companies
• Supports entrepreneurs, foreign investors and users
• Simplify procedures
Advantages
• The process of companies formation was reduced to a single
step
Coverage
• 21 Chambers of Commerce in Colombia
¿Why CAEs?
• Procedures decrease
• Costs reduction
• Risk minimization
• Quick and Formal activities start

30. Register
Corporation,
40%
Other
Business,
60%
Large, 2.17%
Medium, 6.06%
Small, 21.37%
Microenterprise,
70.40%
Micro
97,77%

31. Companies
One man company 27.416
Regular general partnership 1.263
Limited partnership 13.655
Joint-stock limited companies 1.407
Limited liability companies 225.453
Corporation 18.768
Simplified Stock Corporation 114.362
Other business
Persons holding professional trade 515.649
Commercial establishment and branches 436.704
Number and types of companies in CCB
mercantile registry

32. It is a for profit legal entity by shares, the nature of which
will always be commercial
• May be formed by one or more persons or legal entities
• Shareholders will only be responsible for providing the
capital contribution promised to the SSC
• Shareholders will not be held liable for any obligations
incurred by the SSC
• Upon the filling of the formation documents before the
mercantile registry, de SSC will form a legal entity
separate and distinct form its shareholders
Simplified Stock Corporation – SSC
• Shares issue by the SSC shall not be register
by the stocking exchange

33. 4,947
14,092
32,129
56,447
80,656
106,034
114,632
2007 2008 2009 2010 2011 2012 2013
Simplified Stock Corporation – SSC
96%
Of total
companies
incorporated

34. Mercantile registry volume transaction perform
2013
Registry services # of activities Participation
Mercantile 5.709.416 94,9%
New business 72.761 1,2%
Commercial establishments 41.785 0,7%
Renewal of corporation 253.633 4,2%
Renewal of other business 160.462 2,7%
Renewal of commercial establishments 229.524 3,8%
Changes of information 318.424 5,3%
Certificates 4.632.827 77,0%
Bidders for Government Contracts 20.458 0,3%
Non-profit entities 284.662 4,7%
Total 6.014.536 100,0%

35. • Registry renewal
• Online certificates
• Registry of
– Mercantile
– Bidders for Government
Contracts
– Non-profit Entities
– National Tourism
– Foreign, private, non-profit
entities
– Solidarity Economy
– Natural and legal persons
engaged in the activity of
gaming and gambling
• Public registration of citizens
oversight organizations
• Contact us
• FAQ
• Chat
• Virtual Call
• Comments, complaints and
compliments
• Virtual Assistants
• Tutorials
• Names of companies active in
the commercial register
(homonymy)
• Sorter goods and services
• Economic Activities (ISIC Code
and Treasury)
• Make before Superintendence
of Industry and Commerce
• Registry Information
• Databases and business
information online
• Procedures and formalities
before the CCB
• Corporate Law Library and
Registry
E-services
Transactions Consultation Information
E-Signature
Documents signed online with legally compliant e-signature software are as valid and
binding as traditional pen-and-paper documents.

36. • We accept all kind of online payments credit cards, debit cards,
direct transfer (PSE)
• When the customer does not want to pay online the system can
generates electronic bills to be printed and pay either in a bank, or
any CCB offices
• Agreements with the financial system allows us to collect payments
in 1,041 bank offices and 137 non-banking correspondents
• During 2013 64% of the registry income was collected through
different channels than the CCB offices.
Payments

37. * Ranking according to Alexa.com
Our Main tool for contact and interaction with our users
https://www.ccb.org.co
WEBsite
Global Ranking: 62,725*
Colombian Ranking: 261*
Global Chamber of Commerce Ranking: 3*
16 millions unique hits on 2013
• Chat
• FAQ´s
• Complaints, suggestions
and compliments
• Virtual forums
• Comments on posts
• B-learning courses
• Videos
• Multimedia aids and
tutorials

38. 16.493
Fans
36.939
Followers
+ 10.309
Views
+ 500
Users
5.855
photos
3rd* one between
Chambers of Commerce
2nd* one between
Chambers of Commerce
* Ranking according to Alexa.com
Social Networks
Linked In
You tube

39. We manage our business with excellence
We use Project Management Institute (PMI)
standards to support the implementation of
key strategic programs
Risk management – COSO ERM Risk framework
Certified ISO 9001:2008

40. Awards
Iberoamerican
Quality award
One of the best 5
projects in corporative
social responsability
2nd Social Innovation
experience
Colombian
Quality in
Management
award
2009 201120082006 2007 2010
High technology 6th
place between 100
companies in Colombia
2012
Colombia Online Award
category "Big Business"

41. Conclusions
Where Public Registrars don’t have the right ability to render
services efficiently, Chambers of Commerce as in the
Colombian case have prove to be a good alternative
• Natural ally of business and companies
• It´s non profit nature allows them to invest remaining
operational balances in the business community
• The private sector is willing to support their activity if
services are rendered efficiently and at affordable prices
• Facilitates interaction between the government and
private sector in benefit of business sector

42. Thank you!
Luz Marina Rincón
lmrincon@ccb.org.co

43. 43
A look at the Bogota Chamber of
Commerce

44. Business Strengthening
companies created with our support on 2013
4,346
“Formalized” business
13,978

45. Business Strengthening
We made several trade shows with business
expectations of
USD$106.5 Million
Funding support to 150 companies reach
USD$5.5 Million

46. Business Strengthening
We develop 3 commercial platforms for music
and visual arts sectors

47. ADR – Alternative Dispute Resolution
Arbitration
296
cases
7,511
cases
Conciliation
agreements with
a level of 80%
60
companies
Internal
Business
ADR
agreements with
a level of 89%

48. ADR – Alternative Dispute Resolution
school conciliation
agreements with
a level of 95%
47,996
cases

49. CLUSTER Michael E.Porter

50. CLUSTER Michael E.Porter
“geographical concentration of
companies and institutions in
the same business, with
common and complementary
activities”

51. CLUSTER Michael E.Porter
“geographical concentration of
companies and institutions in
the same business, with
common and complementary
activities”

52. CLUSTER
Cluster
initiatives
Michael E.Porter
“geographical concentration of
companies and institutions in
the same business, with
common and complementary
activities”

53. CLUSTER
Cluster
initiatives
• IT & Software
• Business turism and events
• Creative industries and content
• Fashion & apparel
• Footwear & leather goods
• Jewelry and fashion
• Graphic communication
• Cosmetics
Michael E.Porter
“geographical concentration of
companies and institutions in
the same business, with
common and complementary
activities”

54. Public policies
proposals
Private-public
articulation
Knowledge
management
Business Enviroment

55. We create 6 subsidiaries …