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Register Company in Costa Rica

Costa Rica is a country located on the continent of Central America. Spanning over 51,060 square kilometres of land and 40 square kilometres of water, Costa Roca is 131st largest country in the world with a population of around 4.7 million. Costa Rica, often called ‘Switzerland of the Americas’ for its political stability and democracy, is the only country to dissolve its army voluntarily where taxes are used for betterment of education and medical systems.

 

Why setup business in Costa Rica

Costa Rica’s political stability and high education levels, as well as the fiscal incentives offered in the free-trade zones, are the main reasons that attract global investors. It has great investment climate where foreigners enjoy the same ownership rights as Costa Ricans. Together with countries like Belize, Cayman Islands, Panama, Costa Rica offers one of the best offshore investment opportunities in the world.

Advantages of doing business in Costa Rica:

  1. Costa Rica has a young, highly skilled, and well-educated human resource.
  2. Free Trade Agreements cover most of the exports of goods.
  3. Costa Rica provides various assistance and incentives to support investors.
  4. Costa Rica is one of the safest Latin American countries.
  5. Costa Rica is also one of the five countries with the best environmental performance globally.
  6. Costa Rica has a robust investment climate and a pro-business environment.

 

Company Registration in Costa Rica

Register Company in Costa RicaThe company incorporation process in Costa Rica is simple and straightforward. It does not require you to be present in the country as long as you have a Power of Attorney and an incorporation agent.
Below is the snapshot of the company incorporation process in Costa Rica:

1. Fulfil the basic requirements

  • Registered Office
    • All Costa Rican companies must have a registered office in Costa Rica – a location where all official company documents and correspondents may be served.
  • Directors
    • Must have at least three directors for Sociedad Anonima
    • No restrictions/requirements on nationality or residency.
  • Shareholders
    • At least two shareholders needed to incorporate a company.
    • No restrictions/requirements on nationality or residency.
    • Directors and corporate shareholders are allowed.
    • Annual general meetings are one of the statutory requirements but they can be held anywhere across the globe and can be attended via electronic means.

2. Decide the company structure

  • First thing first, choose the proper company structure based on your company’s needs and intended business activities. The three most common business entities in Costa Rica are:
    • The Corporation/Joint Stock Company (Sociedad Anónima – S.A)
    • The Limited Liability Company (Sociedad de Responsabilidad Limitada – S.R.L)
    • The Branches

3. Name your company

  • Name your new company and be sure to get it (the new company’s name) translated into Spanish. Then, file an application with the Costa Rica Registrar of Companies to reserve your company name.

4. Register an Incorporation Charter

  • The notary public will you to register the incorporation charter in the mercantile section of the public registry. Please note that the notary public who granted the deed in his legal protocol book with appropriate signatures can only register the incorporation charter. Upon successful registration, the Registry will issue a federal tax number (cédula de persona jurídica), which is the corporate tax identification number, to the company.

6. Apply for Insurance

  • If you are hiring staff, you need to register your company as an employer with the Caja Costarricense de Seguro Social (CCSS). After your company employs staff in Costa Rica, the company will be registered for labour risk insurance with the National Insurance Institute.

Costa Rica is no doubt one of the preferred investment destinations in Costa Rica. If you are planning to expand your business in Latin America, Costa Rica is definitely the right place to go!