Understanding the difference between Business Establishments and Commercial Premises
Recently the Colombian Superintendence of Companies recalled in Opinion 220-012850 of 2023, that the concepts of business establishment and commercial premises are different although they are usually confused. The superintendence affirmed that according to the provisions of the Colombian Commercial Code, business establishments are a set of goods organized by the entrepreneur to carry out the purposes of the company. That is, they are made up of the things, objects or goods that entrepreneurs use to carry out their commercial activity, such as, for example, the trade name, the brands of the products or services, the furniture or the facilities. On the other hand, commercial premises are the physical space in which business establishments operate, that is, it is the place where the merchant offers goods or services, such as points of sale or stores. It is for this reason that there is no limit to the number of business establishments that can operate in the same place. However, each of these establishments must be duly registered in the commercial registry.
Additionally, the Superintendence recalled that those business establishments that are opened by a company for the development of their businesses and that are managed by proxies who have the power to represent the company, will receive the name of branches. On the other hand, if business establishment managers do not have the power to represent the company, they are considered agencies.
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