Despite its small size, Costa Rica is a good option for registering a company as it is known as one of the most developed, and safest countries in Latin America. Economically growing, its gross domestic product (GDP) reached 2021 $64.28 billion in (all figures in USD), and in the last twenty years, it tripled the gross national income (GNI) reaching $12,500 per capita in 2021.
There are so many reasons to consider business formation in Costa Rica. Entrepreneurs that incorporate a company in Costa Rica’s economy might choose to operate in several thriving industries, including technology, tourism, agriculture, manufacturing, and renewable energy. There are many business opportunities in these sectors but sustainable and green innovation is arguably the most interesting opportunity for company formation in Costa Rica.
Its focus on innovation and sustainability makes it an attractive destination for investment. Successful examples of green tech include dosmil50, whilst the eco-tourism industry alone contributes almost USD$1.5 billion a year to the economy! Costa Rica is undoubtedly a world leader in this area.
This has meant FDI (Foreign Direct Investment) has soared in the last decade, reaching $3.56 billion when last measured by the World Bank in 2021. It has strong FTAs (Free Trade Agreements) with the likes of Chile, Panama and Mexico and is an influential member of the Central American Common Market (CACM), along with El Salvador, Guatemala, Honduras, and Nicaragua.
If you’re considering doing business in Costa Rica, read on for 10 simple steps to register a company in Costa Rica. You can also contact us now for more information.
10 simple steps to register a company in Costa Rica
Registering a company in Costa Rica is a fairly short process. It’s simpler than in many countries and as with a Power of Attorney and an incorporation agent, you can act remotely.
1. Pay Agency Fees
If you’re using a firm to help you with the incorporation process, the firm may ask for upfront payment on services to obtain the necessary due diligence documents.
2. Choose the Company Structure
You will need to choose the right company structure for your company’s needs and activities. Following this, you’ll need a project plan draft detailing the timeline and tasks for each week of the incorporation process.
3. Translating your Company Name
A firm will help translate your proposed company name into Spanish and file an application to reserve your company name with the Costa Rica Registrar of Companies.
4. Sign Off on Proper Documentation
The agency will ask you to sign, notarize, and legalize documents from your country of residence. You’ll then return them to the agency for timely documentation registration in Costa Rica.
5. Open a Corporate Bank Account in Costa Rica
Once you’ve successfully incorporated your company, the law firm will open a corporate bank account for the company and deposit the capital to start the business. Additionally, depending on the firm, they might pay incorporation fees to the bank on behalf of your company.
6. Register an Incorporation Charter
A company incorporation charter also called an M&AA, is filed at the mercantile section of the public registry in Costa Rica. The firm can then legalize the company’s bookkeeping.
7. Register as a Taxpayer in Costa Rica
The agency files a D-140 form to the government to register your company as a legal taxpayer in Costa Rica. The company may let you use their office address for tax purposes until you get an office address in the country for your company.
8. Apply for Insurance
After your company hires staff in Costa Rica, the company will be registered for labour risk insurance with the National Insurance Institute.
9. Register with Costa Rican Social Security
Post-incorporation, the firm will register your company as an employer with the Caja Costarricense de Seguro Social (CCSS).
10. Receive your Costa Rica Company Kit
Ideally, your contracted firm will send you all of the documentation for your company that has been filed throughout the incorporation process.
Register your company in Costa Rica with the help of Biz Latin Hub
Forming a company in Costa Rica can be a difficult process when you are unsure of the steps to take. Using an incorporation firm to aid you in starting your business can save you time, stress, and money in the long run.
At Biz Latin Hub, our multilingual team of company formation has the expertise and experience to help you with any of your projects. With our full suite of corporate legal, recruitment, and tax advisory services, we can be your single point of contact to ensure the success of your business in the Central American nation, as well as any of the other 15 countries across Latin America and the Caribbean where we are present.
Get in touch with us today for personalized advice.
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