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Fashion System

Description scope of the subsector

What is the Fashion Industry sector?

The Fashion Industry sector is composed of two production sectors: Textiles and apparel, leather, footwear and leather goods.

Textiles and Apparel includes several industries such as:

  • Fibers (including cotton and synthetic fibers)

  • Yarns

  • Textiles

  • Apparel

Leather, Footwear and Leather Goods includes several industries such as:

  • Tannery

  • Supplies (including hardware, soles, insoles, heels, molds)

  • Leather goods

  • Footwear

Each of these industries are complemented by marketing activities through their own points of sale, retail trade, tenders, department and chain stores, corporate sales and exports.

Why invest in the Fashion Industry sector in Colombia?

Colombia has positioned itself as the leading exporter of flat woven garments in South America in products such as bras, jeans, girdles and control garments. The Colombian fashion industry represents 9.4% of total industrial GDP and employs around 600,000 people. In 2019, apparel and footwear sales in the country reached a value of USD 8 billion. Over 1,200 Colombian companies in this industry exported their garments to more than 100 countries. – Invest in Colombia

The opportunities offered by Colombian textile production are based on specific facts:

  • We are the leading exporter of girdles and control garments in the Americas and the second largest exporter of these products in the world.

  • In South America, we have positioned ourselves as the leading exporter of flat woven apparel.

  • We are leaders in South America in the manufacture of products such as bras, swimwear, jeans and men's underwear.

  • We are the first country in Latin America in terms of implementation of ethical practices and sustainable development in the industry and the second country in Latin America in terms of Social Responsibility.

*Please note: for specific information on each sub-sector, please refer to the Pre-operational Licenses and Infrastructure Construction procedures.

The other procedures of the investment cycle - Business Creation, Real Estate Purchase, Migration, and Personnel Recruitment - are multi-sector and standard for all investment sub-sectors.

Formalities and administrative procedures to be carried out:

Here you can consult each of the steps and requirements for Infrastructure construction

1 - Apply for an Environmental License

An Environmental License refers to the authorization for the execution of a project, work or activity that may cause serious deterioration to renewable natural resources, to the environment, or modifies the landscape.
Requirements
Requirements

What do I need to apply for an Environmental License?

  1. You must submit the single environmental license form 

  2. Have the supporting drawings on the Environmental Impact Study.

  3. Know the estimated investment and operation costs of the project. 

  4. Present the duly executed "Power of Attorney" when acting through a legal representative. 

  5. Present the proof of payment for the provision of the environmental license evaluation service. 

  6. Have the Certificate of existence and legal representation 

  7. Process and submit the Certificate from the Ministry of Interior regarding the presence or absence of ethnic communities and the existence of collective territories in the project area. 

  8. In case there are ethical communities, a process of "prior consultation" must the carried out. In this consultation, access and participation is given to ethical communities so that they can learn about projects or works to be executed in their territories whenever these projects are likely to affect them directly. 

  9. A copy of the document required by the Colombian Institute of Anthropology and History (abbreviation in Spanish ICANH) must be submitted in order to verify that there are no archaeological remains in the project area.

  10. Complete the form approved by the competent environmental authority as appropriate (ANLA – National Environmental Licensing Authority, Regional CAR – Regional Autonomous Corporation, or Ministry of Environment). 

Steps
Steps

What are the steps to follow to apply for an Environmental License?

  1. Request the NDA (Need for Environmental Diagnosis) form. 

  2. File the Environmental Diagnosis of Alternatives (DAA in Spanish) to evaluate and compare the different alternatives which can be used to develop the project, work or activity.

  3. Attend a meeting with the competent environmental authority which presents the results of the preliminary documentation verification. 

  4. Notify the respective authority of the order to initiate the Environmental License Application process.

  5. If required, receive the technical visit from the entity in charge (ANLA, CAR, Minambiente).

  6. Notify regarding the administrative act which defines the project development alternative.

  7. Request the detailed expense report for the evaluation of the environmental license. 

  8. Pay the environmental license assessment.

Virtuality
Virtuality

Where can I go?

You can go to the respective environmental authority and you can obtain additional information through the Environmental Procedures Integral Online Window -  VITAL.

 

Costs
Costs

What is the cost of this procedure?

Depends on the tariffs of the environmental entity (in accordance with Article 96 of Law 633 of 2000). Rates are set by means of Resolutions. 

According to Article 96 of Law 633 of 2000, it was determined that the rates may not exceed the following ceilings:

  1. Rates with a value of two thousand one hundred and fifteen (2,115) minimum monthly salaries in force will have a maximum rate of zero point six percent (0.6%). 

  2. Rates with a value higher than two thousand one hundred and fifteen (2,115) current minimum monthly salaries and lower than eight thousand four hundred and fifty-eight (8,458) current minimum monthly salaries will have a maximum rate of zero point five percent (0.5%). 

  3. Rates with a value higher than eight thousand four hundred and fifty-eight (8,458) current minimum monthly salaries will have a maximum rate of zero point four percent (0.4%).

For example:

COP$1,806,535.041

Value of the project= COP$18 billion 

Environmental impact study is equivalent to 10% of the project value=COP$1.8 billion. 

Maximum cost of the evaluation= COP$6,535,041 

Total cost= COP$1,806 million

Time
Time

How long does this procedure take?

432 working days

Regulations
Regulations

What regulations must I comply with?

Law 99 of 1993. Whereby the Ministry of the Environment is created, the Public Sector in charge of the management and conservation of the environment and renewable natural resources is reorganized, the Environmental System, SINA, is organized, and other provisions are enacted. (Article 49) (Ordinary Law) 

Law 99 of 1993. Whereby the Ministry of the Environment is created, the Public Sector in charge of the management and conservation of the environment and renewable natural resources is reorganized, the Environmental System, SINA, is organized, and other provisions are enacted. (article 50 Ordinary Law)

2 - Apply for a Construction License

A prior permit issued by the urban curator's office or similar authority in each municipality is required when executing a construction project, whether as a new construction, expansion, remodeling, modification, adaptation, reconstruction, demolition or structural reinforcement.
Requirements
Requirements

What do I need to apply for a Construction License?

  1. You need a copy of the Certificate of Delivery and Unencumbered Property, dated no more than 30 days after issuance.

  2. Requires a copy of the identity document of the person or of the Legal Representative.

  3. Copy of the last year's property tax payment.

  4. A list of the addresses of the adjoining properties of the project is necessary.

  5. A copy of the architectural project is needed, labeled and signed by a licensed architect (the labeling refers to the basic information of the project such as):

    • Project: Type of work to be built

    • Contains: Names and details of the plans containing each floor to be constructed

    • Owners: Name of persons for whom the construction is to be performed

    • Address: Place or site where construction will take place 

    • Scale and date: the scale used on each plan and the date of completion of the plans

    • Number of Floors

    • Name of the project draftsman

    • Design: The name of the architect who designed the project to be built.

    • Calculation: The name of the engineer who assisted in preparing the plans.

  6. The architectural project must contain at least the following information:

    • Location.

    • Plants.

    • Elevations or sections of the building, related to public or private roads at a formal scale. The sections shall indicate the actual slope of the terrain when the project is located on sloping ground.

    • Facades.

    • Roof plant: i.e. the plan showing the shape of the top of the buildings, i.e. the shape of the roof.

    • Table of areas: Refers to the total square meters of a constructed area and its division into the different areas that compose it.

  7. The National Single Format for Project Review and Information needs to be processed before the Urban Curator's Office or a competent entity.

  8. In case you act through a legal representative, you must present a special Power of Attorney duly executed before a notary public or a judge of the Republic.

Steps
Steps

What steps must I follow to apply for a Construction License?

  1. Verify that you comply with the above requirements

  2. Carry out the process virtually through the Construction Counter at the Urban Curator's Office or at the entity in charge in each region.

Virtuality
Virtuality

Where can I go?

This process must be carried out before the Urban Curator's Office or the municipal entities. You can also obtain more information through the VUC Construction Counter.

Costs
Costs

What is the cost of this procedure?

The cost of the construction license depends on the location, strata, square meters and type of construction to be carried out on the property. 

The following may be an example to calculate the cost of the Construction License: COP$7,800,940

Note: Information based on the tariffs of the urban curator's office: 

Property with an area of 600 m2 

Construction coefficient= 2.61 

Fixed cost= COP$1.254.170 

Variable cost= COP$6,546,770 

Total=COP$7,800,940

Time
Time

How long does this procedure take?

The estimated time is 63 working days depending on whether corrections and adjustments to the previously required documents are necessary. More days may be necessary depending on the type of required license (new construction, expansion, remodeling, modification, adaptation, reconstruction, demolition or structural reinforcement).

Regulations
Regulations

What regulations must I comply with?

Law 388 of 1997 (Article 99, numeral 1 and 2) 

Sole Regulatory Decree 1077 of 2015 (Compiles Decree 1203 of 2017) (Article 2.2.6.1.1.1.7) (Regulatory Decree)

3 - Make the payment of the delineation tax

The delineation tax is caused by the issuance of the construction license for new real estate construction, expansion, modification, adaptation or repair.

Requirements
Requirements

What do I need to pay the delineation tax?

  1. Check the web page or the Mayors' Offices of the region for the documents and forms that must be presented to pay the delineation tax.

Steps
Steps

What steps must I follow once I have all the documents?

  1. Complete the advance payment online form. 

  2. Make the advance payment

  3. Once the work has been completed, fill out the online form for the tax payment declaration.

  4. Make the tax payment

Virtuality
Virtuality

Where can I go?

You can pay this tax at the private financial institution of your choice and obtain more information at the Single Construction Counter – (abbreviation in Spanish VUC - Ventanilla Única de la Construcción).

Costs
Costs

What is the cost of this procedure?

The cost may vary from one municipality to another. For example, in Bogota, the cost is 3% of the construction budget.

Time
Time

How long does this procedure take?

>1 working day

Regulations
Regulations

What regulations must I comply with?

Law 97 of 1913 (Article 1) (Ordinary Law) 

Decree Law 1333 of 1986 (Article 233) (Decree Law) 

Decree 352 of 2002 of the Office of the Mayor of Bogotá. (Article 72) (District Regulatory Decree) 

Agreement 352 OF 2008, of the Council of Bogota. (Article 2) (Administrative Act)

4 - Request Electrical Power Connection Service

You can use this application to carry out the electrical power service connection.
Requirements
Requirements

What do I need to request an electrical connection?

  1. Present the Certificate of Delivery and Unencumbered Property. 

  2. Copy of the applicant's identification card 

  3. Copy of registration and certificate of the electrical technician. The National Council of Electrical Technicians (CONTE in Spanish), will give the respective certification to the technician to validate his competence in electrical matters. 

  4. Self-declaration or RETIE certification (Technical Regulation of Electrical Installations) the objective is to comply with process standards and safety parameters that guarantee the safety of people, animal and plant life.

  5. Present the electrical design

Steps
Steps

What steps must I follow once I have all the documents?

  1. Make the service request to the service provider 

  2. Obtain certification of internal wiring by a firm accredited by the National Accreditation Organization (ONAC) or by the Superintendence of Industry and Commerce (SIC). 

  3. Perform Inspection of external works, meter installation and power flow.

Virtuality
Virtuality

Where can I go?

You can approach the regional electric utility company and get more information at the VUC Construction Counter.

Costs
Costs

What is the cost of this procedure?

COP$4,227,114

Basis for cost estimation:

Base costs to ENEL 

COP$1,600,000 Certification of internal installations 

COP$2,627,114 Inspection of external works

Time
Time

How long does this procedure take?

45 to 60 working days

Regulations
Regulations

What regulations must I comply with?

Law 142 of 1994 (art.14. numeral 1425) (Ordinary Law). 

Law 142 of 1994 (art.131) (Ordinary Law) 

Law 142 of 1994 (Article 132) (Ordinary Law)

5 - Request a water connection

With this process you can request a public water and sewage service connection.
Requirements
Requirements

What do I need to apply for a water and sewer connection?

  1. Real estate registration folio number 

  2. Copy of the identity document of the legal representative

Steps
Steps

What steps must I follow once I have all the documents?

  1. Gather the documentation mentioned above

  2. Make the connection request 

  3. Make the payment, which will be charged on the service invoice.

Virtuality
Virtuality

Where can I go?

In person you can go to the Water Service Company in the region where the company is located. 

You can get information about the process on the web or by phone.

Costs
Costs

What is the cost of this procedure?

Variable cost depending on the location and appraisal performed by the company. Basic information according to the procedure guide of ACUEDUCTO de Bogotá. (Bogotá's Water Service).

Time
Time

How long does this procedure take?

5 working days

Regulations
Regulations

What regulations must I comply with?

Law 142 of 1994 (art.14. numeral 14.22) (Ordinary Law). 

Law 142 of 1994 (art.131) (Ordinary Law) 

Law 142 of 1994 (art.132) (Ordinary Law)

6 - Request Gas Connection

You can use this process to request the connection of the natural fuel gas public service.
Requirements
Requirements

What do I need to apply for a Gas connection?

  1. Real Estate Registration Folio Number 

  2. Copy of the identity document of the legal representative

Steps
Steps

What steps must I follow once I have all the documents?

  1. Gather the documentation mentioned above 

  2. Make the connection request 

  3. Connection inspection by a firm authorized by the public utility company

  4. Make the payment, which will be charged on the invoice of the service.

Virtuality
Virtuality

Where can I go?

You can approach the regional Gas utility company. However, you can obtain more information about the process on the web or by telephone.

Costs
Costs

What is the cost of this procedure?

The cost may vary depending on the characteristics of the installation.

Example of cost for home gas installation 

COP$148.427 + VAT (Value Added Tax)

Time
Time

How long does this procedure take?

The time will depend on the characteristics of the requested service (new connection, gas pipeline, installation, project location, among others).

Regulations
Regulations

What regulations must I comply with?

Law 142 of 1994. Whereby the regime of domiciliary public utilities is established and other provisions are issued. (art.14. numeral 14.28) (Ordinary Law) 

Law 142 of 1994. Whereby the regime of domiciliary public utilities is established and other provisions are issued. (art.131) (Ordinary Law) 

Law 142 of 1994. Whereby the regime of domiciliary public utilities is established and other provisions are issued. (art.132) (Ordinary Law)

7 - Request authorization to occupy the property

The Real Estate Occupancy Authorization. Refers to the act which the competent authority uses to exercise urban control. After work is finished, the competent authority (by means of a detailed act) certifies the full compliance of the following points: 

  1. That the works on the property were carried out in accordance with the approved points in the Construction License.

  2. That the works of adaptation to the seismic resistance norms and/or to the urban and architectural norms included in the building recognition act were duly carried out.

Requirements
Requirements

What do I need to apply for an occupancy permit?

A letter requesting such authorization must be submitted.

Steps
Steps

What steps must I follow once I have all the documents?

  1. Gather documents and comply with the requirements established by the procedure. 

  2. File the required document

Virtuality
Virtuality

Where can I go?

This procedure must be carried out in person at the Municipality of the Region, and information on the process can be obtained on the web through the Construction Counter or by telephone.

Costs
Costs

What is the cost of this procedure?

No cost

Time
Time

How long does this procedure take?

On average, this process takes 21 working days.

Regulations
Regulations

What regulations must I comply with?

Sole Regulatory Decree 1077 of 2015. (Amended by Decree 1203 of 2017, Article 11) (Article 2.2.6.1.2.3.6) (Regulatory Decree) 

Sole Regulatory Decree 1077 of 2015. (Amended by Decree 1203 of 2017, Article 13) (Article 2.2.6.14.1) (Regulatory Decree) 

Decree Law 1469 of 2010 (Article 39) (Regulatory Decree)

Decree 1203 of 2017