Set up a Costa Rica Start-Up
Starting a Business in Costa Rica
Doing Business in Costa Rica
Establishing a company in Costa Rica isn’t much different from elsewhere!
GLC International is the best legal advisor for your business needs, for any type of business that you are interested in developing in and from Costa Rica. We have assisted hundreds of successful entrepreneurs in the last 25 years with launching their Costa Rica startups.
Business Set-Up: Checklist for a Costa Rica Business StartUp
Starting a business in Costa Rica is not that different from any other place in the world. After setting up your Costa Rica Corporation, and getting your Costa Rica business license, you are set to go, and that is why we are here, to help you through the process of starting a business opportunity in Costa Rica.
Our expert Business Attorneys will provide the best Costa Rica legal advice for your business needs. Contact Us today and ask for more information regarding GLC Costa Rica Business Experts in Costa Rica Incorporation.
Setting up a company in Costa Rica involves following a series of specific steps to ensure that your business is in compliance with local laws and regulations. These steps are detailed below to facilitate understanding of the process and to ensure that no important details are omitted.
Steps to Start a Business in Costa Rica
The Rules: Decide on The Type of Legal Entity
General Explanation: The Costa Rican Code of Commerce in its article 8 establishes, “foreigners will be allowed to conduct business once they have obtained a residency status for more than ten years.” Having said that, it is common knowledge that thousands of foreigners are currently involved in starting a business in Costa Rica, the way to do it is very easy just to incorporate a Costa Rican company and conduct business through it with all the advantages of a limited liability corporation (LLC).
The 2 main choices of corporations for a Costa Rica Business Startup:
- Sociedad Anónima (S.A.): The most commonly used limited liability corporation in Costa Rica Business Start-Up. It is normally formed by a Board of Directors made by: President, Secretary, and Auditor, with a Treasurer outside of it. This structure allows for a clear separation of responsibilities and is ideal for larger companies or those seeking to attract external investment.
- Sociedad de Responsabilidad Limitada (S.R.L): With the advantages of a limited liability corporation but designed perhaps for a smaller less formal Costa Rica Business StartUp, presents advantages of a “one-man” Board of Directors which facilitates formalities and could be formed in such a way in which all the shareholders would have to approve the admission of a new shareholder. This structure is perfect for small and medium-sized companies that wish to maintain a more simplified and straightforward management.
The Costa Rica Business License for your Start-Up
General Explanation: Once the corporation in Costa Rica is formed, any business activity that has an “open office” in Costa Rica requires applying before the Municipalidad (local government), where the business will be located, for a Patente Municipal (Business License).
The main steps involved are:
1. Verification of Municipal Legislation:
Before you sign any Lease or Property Purchase Agreement, make sure that the specific zoning regulations allow the desired activity. This avoids legal problems and possible sanctions in the future.
2. Lease or Purchase Contracts:
Sign a Lease or Property Purchase Agreement in order to initiate the application process before the authorities. GLC International helps you to ensure that all documents are in order and comply with legal requirements.
3. Registration with the Ministry of Finance:
Register the corporation before the Tax Authority (Ministerio de Hacienda) is a crucial step for the legalization of your company and to be able to operate formally in the country.
4. Work Risk Insurance:
Acquiring a Work Risk Insurance for Employees with the INS (local insurance agency) is mandatory to protect both your employees and your company in case of accidents at work.
5. Registration with the CCSS:
Register the corporation as an employer in the CCSS (Social Security Institution). It is necessary to comply with social security obligations and to ensure that its employees have access to health and pension benefits.
6. Health Permit:
After the Zoning Permit is approved, the corporation can now apply for the Health Permit before the Ministry of Health. This step is essential to ensure that the facilities comply with hygiene and safety standards.
7. Obtaining the Business License:
Finally, apply for the Business License once the Health Permit has been issued is the last step for your company to operate legally in Costa Rica.
Corporate Taxes
General Explanation: As it was mentioned above, the Costa Rica Corporation has to be registered as a contributor before the Dirección General de Tributación Directa (Tax Authority) as a specific business.
The Corporate Tax will range from 10% to 30% on profit, depending on the volume of total revenue. This progressive tax system ensures that companies contribute fairly to the economic development of the country, while enjoying a competitive tax environment compared to other countries in the region.
Costa Rica Business Office Set-Up
General Explanation: The idea is to find an ideal location that will be cost-effective and at the same time consider its convenience for the desired target segment of customers and provide easy access, parking space, ambiance, etc. A good location can make a difference in attracting and retaining customers, as well as in the operational efficiency of your business. In addition, the infrastructure and services available in the area should be suitable for the specific needs of your business.
For more info about starting a business in Costa Rica, please contact us.
Miscellaneous Procedures
In addition to the steps mentioned above, there are other procedures that are important to ensure that your company operates efficiently and complies with all regulations:
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Opening local and offshore bank accounts: This is essential to manage your company’s finances effectively and facilitate international transactions.
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Trademark registration: Protect your brand and secure your corporate identity in the marketplace.
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Acquiring insurance: Insure your company against potential risks that may affect your operation.
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Obtain mobile phone lines: Facilitate internal and customer communication.
Moving and storage services: Ensure a smooth and efficient transition to your new premises.
GLC International: Your Trusted Partner for Starting a Business in Costa Rica
At GLC International, our team of experienced attorneys specializes in Costa Rica business law and is dedicated to helping entrepreneurs like you successfully launch their ventures in Costa Rica. We understand the intricacies of the legal framework surrounding business formation in Costa Rica and can guide you through every step of the process.
Our comprehensive services for starting a company in Costa Rica include:
- Advising on the most suitable legal structure for your Costa Rica startup: whether it’s a Sociedad Anónima (S.A.) or a Sociedad de Responsabilidad Limitada (S.R.L.)
- Assisting with the incorporation of your Costa Rican company: ensuring compliance with all legal requirements
- Guiding you through the process of obtaining the necessary permits and licenses, such as the Costa Rica business license (Patente Municipal) and health permit
- Providing expert guidance on Costa Rica’s tax laws and helping you register your corporation with the tax authorities
- Offering ongoing legal support to ensure your business in Costa Rica operates smoothly and in full compliance with the law
By partnering with GLC International, you can focus on starting a Business in Costa Rica while we handle the legal complexities. Our attorneys stay up-to-date with the latest developments in Costa Rica business law, ensuring that your venture remains compliant and protected.
Don’t let legal uncertainties hold you back from starting a business in Costa Rica. Contact GLC International today to learn more about how we can help you navigate the legal landscape and set your Costa Rica startup up for success.
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