The Invisible Line Between a Simple Real Estate Asset and a Commercial Establishment

Corporate attorney Daniel Fajardo wrote an article for Asuntos Legales detailing the importance of the distinction between real estate assets and commercial establishments in Colombia. As he explains, a bodega, which does not meet certain legal requirements, cannot be considered a business enterprise. Although the difference may seem pedantic, it has important implications in practice, particularly for mergers and acquisitions (M&A) transactions. With this in mind, the country's Superintendency of Corporations issued Order 220-053168 of June 18, 2025, that responded to questions submitted by the Bogotá Chamber of Commerce: 1) if bodegas must register as businesses and, if so, what the process is, and 2) what document should be used to accredit a bodega when authorities come for inspections or audits. In this article, Mr. Fajardo analyzes the government's response.

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