A few days ago, the border between Colombia and Venezuela was reopened after a 7-year pause. Diplomatic relations have improved, resulting in cooperation agreements that seek the economic and social benefit of both countries. Thanks to this opening, an increase in economic activity is expected. Therefore, many Colombian businessmen have begun to seek advice to expand their operations within the Venezuelan territory. For that reason, in this article we will talk about the Colombian companies that have started to domicile in Venezuela.

What benefits do companies expect when domiciling in Venezuela?

With the reactivation of the commercial exchange between Colombia and Venezuela, the spokesman of the Eastern Regional Colombian-Venezuelan Chamber, Víctor Manuel Méndez, pointed out that in the long term, 120 thousand jobs are expected to be recovered in the region. Also, the calculations of the trade unions involved estimate an exchange of US$ 800 million by the end of the year, and US$ 4000 million in the next three years.

Therefore, one of the main benefits expected by the companies, when domiciled in Venezuela, is to facilitate their commercial operations both to acquire raw materials and to offer products and services in high demand. It should be remembered that Venezuela has been constantly exporting iron, fuels, chemical materials, among others. Therefore, this would alleviate part of the demand for these resources in companies located in Colombia. In addition to being able to commercialize products that are not produced in Venezuela, such as medical supplies, confectionery, textiles, etc.

What must Colombian companies do to become domiciled in Venezuela?

In order for a Colombian company to be domiciled in Venezuela, it is important that it complies with a legal procedure that will allow it to establish itself in the country without disassociating itself from the parent company of the business. In this way, the company will be able to operate commercially and comply with legal and tax obligations in Venezuela, while at the same time transferring the profits of the business to Colombia.

Therefore, companies that want to become domiciled in Venezuela should seek the advice of a team of expert lawyers who can assist them in every requirement. In this way, foreign investments can be made in a reliable manner, as long as they are under the Venezuelan legal system. For this, the company must have the permits, certifications, and any other requirement of the industry it wishes to operate in the country. In that sense, we recommend you to complement this information and learn about the process with our article How to domicile a foreign company in Venezuela?.

What are the investment opportunities for Colombian companies in Venezuela?

Among the most outstanding opportunities we have:

• Marketing of textiles, footwear and other clothing products.
• Provision of telecommunications services.
• Marketing of hygiene products and medicines.
• Sale of machinery for almost all the exploitable industries in the country.
• Marketing of confectionery and its raw materials.
• Investments in the oil industry.

Although these opportunities are some of the most important, there are many needs in Venezuela that are not covered by domestic production. In this regard, the Chamber of Commerce recommends conducting a market study that compares demand with the operational and production requirements of the business. In this way, long-term strategies can be planned before Colombian companies start procedures to become domiciled in the country. This will allow the partners to identify potential business relationships, while mitigating the risks related to the Venezuelan context.

Similarly, businessmen who maintain their operations in Venezuela, recommend taking advantage of the opportunities that this territory has. Leonardo Aljure, president of the candy and confectionery company Aldor, affirms that the Venezuelan market is perfect due to its consumption culture. "We export 400 tons per month", says the businessman, so this reactivation must be taken advantage of to bring more items to the market.

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