NEW ORGANIC LAW OF NATIONAL SOLIDARITY

On June 10, 2025, Supplement 56 of the Official Register published the Organic Law of National Solidarity, introducing significant reforms in the business sector.

Below are the main aspects you should be aware of:

1. Restrictions on Activities for Simplified Stock Corporations (S.A.S.)

The new regulations establish that Simplified Stock Corporations (S.A.S.) may not engage in activities -that is, provide any type of services- in the following sectors of the economy:

• Strategic sectors;
• Mining or related activities;
• Financial operations;
• Securities market; and
• Insurance.

Legal entities wishing to operate in these areas must be incorporated as either a corporation or a limited liability company, in accordance with current legislation.

2. Creation of the Legal Entity: Sports Corporation

To promote the development of professional sports in the country, the Law creates a new legal entity: the Sports Corporation. This structure will allow sports organizations to adopt a corporate form that facilitates their management and economic growth.

Key provisions of the regulation include:

• Sports Corporations may engage exclusively in one single sport discipline.
• Incorporation will be carried out through a contract or unilateral act in accordance with the provisions of the Law.
• Sports clubs or teams participating in professional competitions may adopt this corporate form.

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This publication contains information of general interest and does not constitute legal opinion on specific issues. Any analysis will require legal advice from the Firm.