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Domestic commercial arbitration in Colombia: Ley 1563 de 2012, tribunal formation, six month term, fees in UVB and annulment

Last verified: 2026-10-26 · Status: Stable

Domestic arbitration under Ley 1563 de 2012 is institutional by default, decided in law unless agreed otherwise, by three Colombian arbitrators for claims above 400 minimum wages (COP 700,362,000 in 2026) or a sole arbitrator below that. Unless the parties agree a term, the award is due six months after the first procedural hearing, extendable by up to six months; each party deposits its half of fees within 10 days or the tribunal can end and the clause lapses for that case. Fees are capped by decree in UVB (1.5 to 3.25 percent of the claim per arbitrator, never above 1,000 minimum wages), and the only challenge is annulment within 30 days on nine listed grounds.

USD figures use the TRM (tasa representativa del mercado) of COP 3,158.43 per US dollar, valid 24 to 26 October 2026, from the official TRM series published by the Superintendencia Financiera on the national open data portal. Peso figures in UVB use the 2026 UVB of COP 12,110 (Res. MinHacienda 3488 de 2025, as reported by the Ministry of Transport); figures in minimum wages use the 2026 monthly minimum wage of COP 1,750,905 (Decreto 1469 de 2025). Conversions are for orientation only.

Key facts

Arbitration statute	Ley 1563 de 2012 textLey 1563 de 2012, as of 2026-10-26 · in force
Default duration of a domestic arbitration	6 monthsLey 1563 de 2012 art. 10, as of 2026-10-26 · in force
Higher value arbitration threshold 2026 (400 minimum wages)	700362000 COPLey 1563 de 2012 art. 2, as of 2026-10-26 · in force
Statutory cap on fees per arbitrator 2026 (1,000 minimum wages)	1750905000 COPLey 1563 de 2012 art. 26, as of 2026-10-26 · in force
Arbitrator fee cap for claims above 190,281.71 UVB	1.5 %Decreto 1069 de 2015 art. 2.2.4.2.6.2.1, as of 2026-10-26 · in force
Initial payment to the centre, higher value claim 2026 (215.76 UVB)	2612854 COPDecreto 1069 de 2015 art. 2.2.4.2.6.2.2, as of 2026-10-26 · in force
Time for each party to deposit fees	10 daysLey 1563 de 2012 art. 27, as of 2026-10-26 · in force
Deadline to seek annulment of a domestic award	30 daysLey 1563 de 2012 art. 40, as of 2026-10-26 · in force
Domestic arbitrators must be Colombian citizens	yes yes or noLey 1563 de 2012 art. 7, as of 2026-10-26 · in force

The rule

1. Parties may submit disputes over rights they can freely dispose of. The arbitration agreement (a clause or a separate submission) waives court jurisdiction; a clause in a separate document must name the parties and identify the contract. The clause is separable: invalidity of the contract does not affect it, and assignment of the contract carries the clause. If the parties do not say otherwise, the award is in law and the arbitration is institutional.Ley 1563 de 2012 (Estatuto de Arbitraje Nacional e Internacional), in force from 12 October 2012, Art. 1, 2, 3, 4, 5 and 119, 2012-07-12 official text · verified 2026-10-26

2. Claims above 400 monthly minimum wages are higher value arbitrations. The number of arbitrators is always odd; failing agreement there are three, or one in lower value cases. Arbitrators must be Colombian citizens and, in arbitration in law, meet the requirements to be a district superior court judge. Centres appoint by lot from their lists; failing appointment, a circuit civil judge appoints by lot.
Cost to do it: 2026 higher value threshold: COP 700,362,000 (US$221,743.71).Ley 1563 de 2012, Art. 2, 7, 8 and 14, 2012-07-12 official text · verified 2026-10-26

3. The case starts with a claim filed with the agreed centre or, failing that, one at the respondent's domicile. When a public entity is sued, the centre must notify the Agencia Nacional de Defensa Jurídica del Estado before the case may continue. The respondent has 20 days to answer; counterclaims are allowed but not preliminary defences or incidents. A party sued in court that fails to raise the arbitration clause waives it for that case.Ley 1563 de 2012, Art. 12, 20 and 21, 2012-07-12 official text · verified 2026-10-26

4. Absent an agreed term, the proceedings last six months from the end of the first procedural hearing, including any clarification or correction; extensions requested by the parties may not exceed six months in total, and party requested suspensions may not exceed 120 days. There is no suspension for pending related proceedings.Ley 1563 de 2012, Art. 10 and 11, 2012-07-12 official text · verified 2026-10-26

5. After conciliation fails the tribunal fixes fees and expenses. Each party deposits its share within 10 days; the other party may pay for it within five more days and recover the sum by summary execution with default interest. If nobody pays, the tribunal ends and the arbitration agreement lapses for that dispute. Fees per arbitrator are capped at 1,000 minimum wages (500 if the claim has no value); a sole arbitrator may receive up to 50 percent more; the secretary up to half an arbitrator's fee.
Cost to do it: 2026 cap per arbitrator: COP 1,750,905,000 (US$554,359.29).Ley 1563 de 2012, Art. 25, 26 and 27, 2012-07-12 official text · verified 2026-10-26

6. The decree tariff caps each arbitrator's fee at 35.95 UVB for claims under 1,078.71 UVB; 3.25 percent up to 18,985.01 UVB; 2.25 percent up to 57,062.92 UVB; 2 percent up to 95,140.88 UVB; 1.75 percent up to 190,281.71 UVB; and 1.5 percent above. Centre expenses are 50 percent of one arbitrator's fee. On filing, the claimant pays the centre 107.86 UVB in lower value cases or 215.76 UVB in higher value or undetermined cases, credited to expenses. For claims without a value the fee base is capped at 53,934.71 UVB.
Cost to do it: Filing payment 2026: COP 1,306,185 (US$413.56) or COP 2,612,854 (US$827.26).Decreto 1069 de 2015, as amended by Decreto 42 de 2026, Art. 2.2.4.2.6.2.1, 2.2.4.2.6.2.2 and 2.2.4.2.6.2.3, 2026-01-21 official text · verified 2026-10-26 · changed: Decreto 42 de 2026 (21 January 2026) restated arbitrator fee bands and the filing payment in UVB.

7. The only remedy is the extraordinary annulment application, filed with the tribunal within 30 days of notice of the award (or of the ruling on clarification), on nine grounds: invalid or absent agreement; expiry, lack of jurisdiction or competence; improper constitution; improper representation or lack of notice; refusal of timely requested evidence; award after the term; equity decision when law was required; contradictory provisions or arithmetic errors; and ultra or infra petita. The first three grounds require an earlier reposición against the tribunal's assumption of jurisdiction. The district superior court (civil chamber) of the seat decides within three months without reviewing the merits; the Consejo de Estado hears it when a public entity is party. Annulment does not suspend compliance unless a condemned public entity requests it.Ley 1563 de 2012, Art. 40, 41, 42, 43 and 46, 2012-07-12 official text · verified 2026-10-26

8. In arbitration involving a public entity over state contracts, including the economic consequences of administrative acts issued under exceptional powers, the award must be in law and the arbitration is institutional. The former arbitration provisions of the public procurement statute (Ley 80 de 1993 art. 70 to 72) were repealed by Ley 1563.Ley 1563 de 2012, Art. 1, 2 and 118, 2012-07-12 official text · verified 2026-10-26

Claim value (UVB)	Claim value 2026 COP	Maximum fee per arbitrator
Under 1,078.71	Under 13,063,178	35.95 UVB (COP 435,355; US$137.84)
Up to 18,985.01	Up to 229,908,471	3.25 percent of the claim
Up to 57,062.92	Up to 691,031,961	2.25 percent
Up to 95,140.88	Up to 1,152,156,057	2 percent
Up to 190,281.71	Up to 2,304,311,508	1.75 percent
Above 190,281.71	Above 2,304,311,508	1.5 percent

Maximum fee per arbitrator in 2026 (Decreto 1069 de 2015 art. 2.2.4.2.6.2.1 as amended by Decreto 42 de 2026; UVB COP 12,110; USD at TRM COP 3,158.43)

Worked example

Claim of COP 1,000,000,000 (US$316,613.00), about 82,576 UVB, before three arbitrators: the 2 percent band applies, so each arbitrator may receive up to COP 20,000,000 (US$6,332.26).
Three arbitrators COP 60,000,000, secretary COP 10,000,000 and centre expenses COP 10,000,000 (50 percent of one arbitrator): total up to COP 80,000,000 (US$25,329.04), of which the COP 2,612,854 filing payment is credited.
Each side deposits half, COP 40,000,000 (US$12,664.52), within 10 days; if the respondent does not pay, the claimant may pay its share within five days and recover it with default interest.

Step by step

Draft the clause: name the centre, number of arbitrators, seat, language and whether the award is in law; consider international arbitration if the parties are domiciled in different states.
File the claim with the centre with the clause and pay the initial fee.
Appoint arbitrators or let the centre draw them by lot within five days; arbitrators accept within five days.
Installation hearing; respondent answers within 20 days; conciliation hearing; fees fixed; deposits within 10 days.
First procedural hearing: the tribunal rules on its jurisdiction; the six month term starts when it ends.
Award, then 30 days to seek annulment before the district superior court.

Common traps

Silence in the clause means institutional arbitration in law with Colombian arbitrators; foreign counsel expecting ad hoc or foreign arbitrators must say so, or qualify the case as international.
Not depositing your share can end the tribunal and extinguish the clause for that dispute, sending the case back to court.
Jurisdictional objections must be raised by reposición at the first procedural hearing or are lost for annulment.
An award issued after the six month term (plus extensions and suspensions) is annullable.

Sources

← Conciliation, mediation and amiable composition in Colombia: the pre suit requirement, fees in UVB and the Singapore ConventionInternational arbitration seated in Colombia: Model Law rules, interim measures, annulment waiver and enforcement →