company formation
company formation
As a foreigner, you can set up your own company in Costa Rica with a small investment of capital. Corporate taxation is relatively low, but there is an obligation to provide proof of where and from whom the invested capital comes.
You can set up a new “Sociedad Anónima” (SA) with a name suggested by you and a standard partnership agreement with a minimum capital of 10,000 colones (approx. 25 USD), which includes legal fees of 500 to 750 USD and Smaller fees not yet included.
After the acquisition of the SA and the subsequent entry in the “Ministerio de Hacienda”, your stock corporation is activated. Now you can do a lot of things with this company: work, make financial transfers, open branches, buy assets, etc.! However, first find out about the special regulations that affect different areas such as tourism, transport, gastronomy, etc.
In order for the accounting matters to be taken care of, you need a publicly recognized accountant (Contador) who can do this work for you (depending on the effort) for USD 50 per month. The annual financial statements, which must be completed by September 30th, usually cost extra.
Setting up an SA is also recommended for individuals, as you can only make some purchases or contracts (e.g. telephone, bank, etc.) through a company (or a local) as long as you do not have a residence permit.
For employees, also think about the tax burden of around 19% on social security and other social security contributions such as holidays, Christmas bonuses, etc., which the employee has to pay for, even if the company is not profitable. The social responsibility lies with you! If you don't pay your employees' social security, you could face imprisonment and company closure.
With management and qualified employees, you will hardly be able to avoid a severance payment after a few years if you terminate your contract without cause.
If you receive wages from your SA yourself, credible wage payments must be made - depending on the line of business! These vary depending on qualifications, but are only a fraction of what is common in Europe, for example. However, measured in terms of business income and social benefits, they should not be underestimated.
Unfortunately, it is often forgotten that foreigners in this country - as everywhere else - only have a chance of realizing a profitable SA with a correspondingly high level of labor and capital investment, language skills, local knowledge, people skills, leadership skills, market knowledge and a previous successful professional career.
And be careful: a stock corporation has nothing to do with the residence permit; this must be applied for separately. Exceptions here are higher direct investments in various projects, for which a residence permit as an investor is an option. A stock corporation in Costa Rica very rarely has the same status as, for example, in Switzerland; the share capital is usually far too small for that.
In order to undertake international trade transactions, you also need appropriate guarantees from your banks. Some companies require significantly higher financial security (e.g. customs agency, transport business, etc.)
Before you decide to set up your own SA in Costa Rica, contact an experienced lawyer and tax advisor who will be able to help you with many other useful details.
Be careful when choosing a lawyer, unfortunately there are always black sheep among them.
In Costa Rica, innovative entrepreneurs and companies that create new jobs are particularly in demand. Companies that, for example, focus on the potential of university graduates are supported by the state and are therefore very welcome. Intel and its supplier industry are examples, although the originally expected goals at the time could not be achieved.
The industry sectors are correspondingly diverse, as you can see from the telephone book. Depending on the industry, this does not necessarily require investments amounting to millions, but only a portion of what would be necessary elsewhere.
There are also good to very good opportunities in Costa Rica to recruit enough qualified employees for your company and to offer them appropriate further training.
Where are the markets and market gaps?
• Why are there no networked tourist information database servers?
• Why is there no nationwide electronic hotel reservation system?
• Why are Costa Rican families no longer funded with private family accommodation?
• Why is so little software sold from Costa Rica to Europe by over 50 software companies?
• Why is there no mango beer?
• Why is there no ready-made furniture store in the country?
• Why are so few medicinal herbs from the rainforest exported?
• Why aren't there more chairlifts in the country?
• Why isn't there a free, large-circulation advertisement?
• Why are there no environmentally friendly waste incineration plants?
• Why are there hardly any carpentry shops with CNC-controlled machinery?
• Why isn't the phone book available on CD-ROM?
• Why are there no spacious retirement homes with medical care for foreigners?
• Why is recycling still in its infancy?
• Why is there still no general eco-label?
• Why isn't an environmentally friendly high-speed railway being built in Valle Central?
• Why are there no digital street maps?
• Why isn't there a city pass that allows you to ride the bus?
• Why can't you make international transfers with online banking?
• Why don't tourism experts develop a plan to preserve the remaining Indian cultures?
• Why do detergent manufacturers sell so little degradable biodetergent?
• Why don't home goods stores offer technical service?
• Why are hardly any electric vehicles sold?
It is not difficult to compile a list of countless possible markets, the work lies in analyzing these markets and preparing appropriate feasibility studies.
However, since Costa Rica is only slightly larger than Switzerland and has around 4.3 million inhabitants, the local market is very small. Purchasing power is relatively low due to the still existing poverty in the country.
You can make far less money with a service business or restaurant than with a retail chain with products in the lower price segment. However, the competition is present everywhere and only very few will win.
In a city with 50,000 inhabitants, you can easily count 150 shoe shops. Thousands of products for everyday needs are also sold from home, which for many families means a small “additional” to their usually low monthly salary.
Innovative companies are therefore looking for markets that require specialists. This is where the opportunities lie and not in the opening of copy shops, Internet cafes, sodas, restaurants, bars, bed and breakfast accommodation, computer shops, etc
See also:
Service Services
About Us
company formation
As a foreigner, you can set up your own company in Costa Rica with a small investment of capital. Corporate taxation is relatively low, but there is an obligation to provide proof of where and from whom the invested capital comes.
You can set up a new “Sociedad Anónima” (SA) with a name suggested by you and a standard partnership agreement with a minimum capital of 10,000 colones (approx. 25 USD), which includes legal fees of 500 to 750 USD and Smaller fees not yet included.
After the acquisition of the SA and the subsequent entry in the “Ministerio de Hacienda”, your stock corporation is activated. Now you can do a lot of things with this company: work, make financial transfers, open branches, buy assets, etc.! However, first find out about the special regulations that affect different areas such as tourism, transport, gastronomy, etc.
In order for the accounting matters to be taken care of, you need a publicly recognized accountant (Contador) who can do this work for you (depending on the effort) for USD 50 per month. The annual financial statements, which must be completed by September 30th, usually cost extra.
Setting up an SA is also recommended for individuals, as you can only make some purchases or contracts (e.g. telephone, bank, etc.) through a company (or a local) as long as you do not have a residence permit.
For employees, also think about the tax burden of around 19% on social security and other social security contributions such as holidays, Christmas bonuses, etc., which the employee has to pay for, even if the company is not profitable. The social responsibility lies with you! If you don't pay your employees' social security, you could face imprisonment and company closure.
With management and qualified employees, you will hardly be able to avoid a severance payment after a few years if you terminate your contract without cause.
If you receive wages from your SA yourself, credible wage payments must be made - depending on the line of business! These vary depending on qualifications, but are only a fraction of what is common in Europe, for example. However, measured in terms of business income and social benefits, they should not be underestimated.
Unfortunately, it is often forgotten that foreigners in this country - as everywhere else - only have a chance of realizing a profitable SA with a correspondingly high level of labor and capital investment, language skills, local knowledge, people skills, leadership skills, market knowledge and a previous successful professional career.
And be careful: a stock corporation has nothing to do with the residence permit; this must be applied for separately. Exceptions here are higher direct investments in various projects, for which a residence permit as an investor is an option. A stock corporation in Costa Rica very rarely has the same status as, for example, in Switzerland; the share capital is usually far too small for that.
In order to undertake international trade transactions, you also need appropriate guarantees from your banks. Some companies require significantly higher financial security (e.g. customs agency, transport business, etc.)
Before you decide to set up your own SA in Costa Rica, contact an experienced lawyer and tax advisor who will be able to help you with many other useful details.
Be careful when choosing a lawyer, unfortunately there are always black sheep among them.
In Costa Rica, innovative entrepreneurs and companies that create new jobs are particularly in demand. Companies that, for example, focus on the potential of university graduates are supported by the state and are therefore very welcome. Intel and its supplier industry are examples, although the originally expected goals at the time could not be achieved.
The industry sectors are correspondingly diverse, as you can see from the telephone book. Depending on the industry, this does not necessarily require investments amounting to millions, but only a portion of what would be necessary elsewhere.
There are also good to very good opportunities in Costa Rica to recruit enough qualified employees for your company and to offer them appropriate further training.
Where are the markets and market gaps?
• Why are there no networked tourist information database servers?
• Why is there no nationwide electronic hotel reservation system?
• Why are Costa Rican families no longer funded with private family accommodation?
• Why is so little software sold from Costa Rica to Europe by over 50 software companies?
• Why is there no mango beer?
• Why is there no ready-made furniture store in the country?
• Why are so few medicinal herbs from the rainforest exported?
• Why aren't there more chairlifts in the country?
• Why isn't there a free, large-circulation advertisement?
• Why are there no environmentally friendly waste incineration plants?
• Why are there hardly any carpentry shops with CNC-controlled machinery?
• Why isn't the phone book available on CD-ROM?
• Why are there no spacious retirement homes with medical care for foreigners?
• Why is recycling still in its infancy?
• Why is there still no general eco-label?
• Why isn't an environmentally friendly high-speed railway being built in Valle Central?
• Why are there no digital street maps?
• Why isn't there a city pass that allows you to ride the bus?
• Why can't you make international transfers with online banking?
• Why don't tourism experts develop a plan to preserve the remaining Indian cultures?
• Why do detergent manufacturers sell so little degradable biodetergent?
• Why don't home goods stores offer technical service?
• Why are hardly any electric vehicles sold?
It is not difficult to compile a list of countless possible markets, the work lies in analyzing these markets and preparing appropriate feasibility studies.
However, since Costa Rica is only slightly larger than Switzerland and has around 4.3 million inhabitants, the local market is very small. Purchasing power is relatively low due to the still existing poverty in the country.
You can make far less money with a service business or restaurant than with a retail chain with products in the lower price segment. However, the competition is present everywhere and only very few will win.
In a city with 50,000 inhabitants, you can easily count 150 shoe shops. Thousands of products for everyday needs are also sold from home, which for many families means a small “additional” to their usually low monthly salary.
Innovative companies are therefore looking for markets that require specialists. This is where the opportunities lie and not in the opening of copy shops, Internet cafes, sodas, restaurants, bars, bed and breakfast accommodation, computer shops, etc
See also:
Services
About Us
