Costa Rica is one of the smallest States in Latin America and is also one of the most favorable, mainly because of its life quality and annual GDP. And in respect of this, registering a company in Costa Rica is a good option if you are interested in entering the Central America market. Its stability, low crime rates, and economic abundance also make it a beloved destination for all types of investment.
What’s more, businessmen can obtain residency in Costa Rica if they invest in a company, real estate, or other types of assets, or if they inject in a plantation of forests.
Are you interested in entering the Costa Rica market?
Decide first, do you want to buy a ready-made company or start a new one?
For a ready-made company in Costa Rica
Costa Rica Shelf Companies
A ready-made company or also known as a shelf company is a term used to refer to an entity, that has been appropriately incorporated (in this case in Costa Rica). This company has had no activity, and it is created with the expectation of selling it later on to an individual or economic group. Usually, the buyer wants to avoid the processes of incorporation, necessary to form a new Costa Rica Company.
As an entrepreneur, if you want to enter the Costa Rican market and don’t want to go through the whole process of registering a company from scratch, a shelf company is an ideal alternative. Your Damalion expert can provide professional assistance to incorporate Costa Rica Shelf companies. Just contact us now.
Starting a new company in Costa Rica
To start a new company in costa Rica, the processes involved are stated below.
Choose the right company structure
The first step in starting a company from the beginning in Costa Rica is selecting the proper company structure for your company’s needs and activities.
Costa Rica has several business structures that differ in terms of complexity, number of people involved, and liability protection.
In Costa Rica, there are a few different types – the Limited Partnership, Public Limited Liability Company, Sociedad Limitada, Sociedad Anonima, Empresa Individual de Responsabilidad Limitada, etc. but the most common company structures in Costa Rica are:
- the limited liability company which requires a minimum of 2 shareholders and one director
- the corporation which requires a minimum of 2 shareholders and a minimum of 3 directors, and
- the branch office that can be set up by foreign companies but need to appoint at least one representative.
Decide on a legal name and choose a registered office
As a foreign or local investor interested in company formation in Costa Rica, your companies in must have a registered office in Costa Rica, and a legal name must also be assigned to the new company. The company name must be unique and approved by the registry before incorporation.
Prepare all required documents
Among the required documents is the Articles of Incorporation, the application forms released by the Trade Register, the power of attorney for the representative in the case of foreign shareholders, the decision for the appointment of the director(s).
After preparing the documents, they must be filled with the Companies Register
Obtain a tax identification number – Número de Identificación del Contribuyente (TIN)
For this step, all documents must be submitted to the Ministry of Finance of Costa Rica to get the taxpayer identification number.
Register for social security purposes
The company must also be registered as an employer with Caja Costarricense de Seguro Social (CCSS). After submitting the required documents, the CCSS will issue a registration form that permits the company to start operations.
Apply for occupation risk insurance
After the company hires staff in Costa Rica, the company must be registered for occupation risk insurance with the National Insurance Institute.
Open a bank account in Costa Rica
As a requirement for company registration in Costa Rica, applicants must open a bank account. The primary documents needed to open a bank account in Costa Rica are the certified copy of the passport or ID of the company’s representative, the name of the company, a letter from the manager of the company in addition to the ID of the person authorized to sign on the account, and an initial deposit.
Taxes in Costa Rica
Costa Rica applies a territorial-only corporate income tax so any income generated outside of Costa Rica will not be subject to taxation but all income generated in Costa Roca is taxed at 30%.
Capital gains are taxed 15%, and 30% if they have been realized with the company’s assets used for ordinary business activity
VAT in Costa Rica
Every legal entity in Costa Rica must register for paying the 13 % VAT. This procedure is very simple and the company representative must complete an application and deposit it at the local tax authority.
Facilitating information to setup your company in Costa Rica
Costa Rica is presently and for years to come one of the best investment and tourist destinations in the world. And in respect of this, Costa Rica Companies are highly recommended for local, international business.
To simplify a company incorporation process in costa Rica, an entrepreneur can opt for remote incorporation.
The whole company formation process can be conducted remotely. No travel will be necessary, but the notarization of documents is necessary, in addition to other requirements that your Damalion expert can help with.
Interested in company registration in Costa Rica? Let’s go ahead and contact your Damalion expert now.
