Registering a company in Costa Rica is a good option if you are interested in entering Central America.
Despite its small size, Costa Rica is known as one of the most developed countries in Latin America. Economically growing, its gross domestic product (GDP) reached in 2019 $61.77 billion (all figures in USD), and in the last twenty years it tripled the gross national income (GNI) reaching $11,700 per capita in 2019.
Its stability, low crime rates and economic prosperity makes it a beloved destination for all types of foreigner, from tourist to investors. Heavy promoter of foreign direct investment (FDI), Costa Rica is also a strong participant in various Free trade agreements (FTAs) with country like Chile, Panama or Mexico. It is also a member of the Central American Common Market (CACM), along with El Salvador, Guatemala, Honduras, and Nicaragua.
Steps to register a company in Costa Rica
Registering a company in Costa Rica is a fairly short process. It is more straightforward than the process in other countries and it is not required that you travel there as long as you have a Power of Attorney and an incorporation agent.
1. Pay Agency Fees
If you are using a firm to help you with the incorporation process, the firm may ask you to pay the mutually agreed upon fees up front to complete the necessary due diligence documents.
2. Choose the Company Structure
You will need to choose the proper company structure for your company’s needs and activities. Then a project plan will be drafted detailing the timeline and what tasks will be completed during each week of the incorporation process.
3. Translating your Company Name
A firm will assist you in translating your proposed company name into Spanish and filing an application to reserve your company name with the Costa Rica Registrar of Companies.
4. Sign Off on Proper Documentation
The agency will give you the required documents for your country of residency to be signed, notarized, and legalized. You will then deliver the documents back to the agency for timely documentation registration in Costa Rica.
5. Open a Corporate Bank Account in Costa Rica
Once your company is incorporated the law firm will process to open a corporate bank account for the company and deposits the capital to get the business started. The firm may also pay incorporation fees with the bank on behalf of your company depending on the firm you choose.
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 then gains permission to 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 allow their office address to be used for tax purposes until an office address within the country is obtained by 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
Optimally, the firm you have contracted 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. Utilizing 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 in any of your projectst. 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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