Understand the Jurisdictions Setup Requirement Before Proceed Your Costa Rica Company Registration
Costa Rica, officially known as the Republic of Costa Rica, is a nice investment destination to consider if you are keen on expanding to Central America. Its unique location, with neighbours such as Panama, Nicaragua, Ecuador and the Caribbean Sea makes it appetizing to a variety of investments, including tourism, real estate, manufacture and import, and export businesses. If you are interested in Costa Rica company registration, we will help you through the entire process so that you don’t face any challenges.
Benefits of Costa Rica Company Registration
There are quite a number of benefits that come with doing business in Costa Rica, especially if you go for company incorporation. Some of these benefits include-:
- One shareholder – only one shareholder will be necessary for Costa Rica company registration.
- Limited Personal Liabilities – investors don’t have to worry about suffering from the liabilities arising from the lawsuits and the misdeeds of the company.
- Low tax rates – the Republic of Costa Rica is one of the few countries in Central America where you will find the least corporate tax rates.
- Asset protection – foreigners, have the freedom to won as many assets as they want without worrying about losing them. The government accords this protection to every foreigner’s assets in the country.
- Stable government – Costa Rica has a long history of political stability and it has always avoided military coups and other internal governance challenges that are very common in most of the Central American countries.
- Strong and stable economy – Costa Rica’s economy is one of the best in Central America, and this is a subtle indication that business does well in the country.
Business Entities in Costa Rica
It is imperative that you choose the right legal entity that will be in line with the nature of the activities you want to do. It should also be aligned with your specific goals since this is the easiest way to reach those goals as soon as possible. In Costa Rica, there are various business entities you may consider registering.
If you are not sure of what entity to go for, our business corporation experts at 3E Accounting can help you make the right choice. All you have to do is get in touch with us, and it will be our pleasure to help you. With that said, here is a look at some of the business entities you can consider when thinking about company registration in Costa Rica-:
Costa Rica Limited Liability Company
Limited Liability Company is one of the most popular forms of business vehicles foreigners consider when they come to Costa Rica. For this formation, one director, and at least two shareholders must be present. Both the director and the shareholders can be of any nationality. The minimum paid share capital for registering a limited liability company in Costa Rica is $1. However, the company must have a registered office, and must also maintain accounting and statutory records.
Costa Rica Corporation
A corporation in Costa Rica is also known as Sociedad anonima. For its incorporation, there have to be at least three directors who must be individuals. The corporation must also appoint at least two shareholders, and the minimum paid up share capital for corporations is $1. This makes this form of Costa Rica company registration within the reach of many investors.
Costa Rica Branch Office
Branch offices are another popular option for foreign companies and investors interested in having a business presence in Costa Rica. To establish a branch office in Costa Rica, the following 3-step process will be applicable:
- The submission of a Power of Attorney to the Commercial Registry
- Submission of the parent company’s Certificate of Good standing
- Submission of the representative’s acceptance of the Power of Attorney to the Commercial Register
It is possible to have a 100% foreign-owned representative’s office in Costa Rica. However, the entity will not have the ability to conduct any profit-generating activity within Costa Rica. They are ideal for market research as well as for promoting or advertising the parent company in Costa Rica.
Investors are also free to register as sole traders. This is if they know that they will be handling the entire operations of the business on their own. They will also be liable for all the debts and obligation of the business.
We Can Help You with the Incorporation Process
The Costa Rica company registration process will vary depending on the type of entity you will be going for. At 3E Accounting, we work with clients from all over the world to help with business incorporation in Costa Rica.
We know the specific processes and procedures for every business entity. You will not just save time, but also avoid the potential pitfalls you may fall into. Usually, these situations happen due to lack of the incorporation laws in Costa Rica. Contact us today, and let us work together towards successful incorporation.