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Costa Rica

Legal form:

S.A., S.R.L., S.A.S.

Delivery:

2 weeks

Price: $

2500

Payment methods:

payment methods.webp

Requirements:

Document checklist:

Local legal address (Handled by B2B Hub) 

1.Passport
2.Proof of Residence 

Registrar

Organization name

Abbreviation

Country

Costa Rica

Email

Phone

Listing
Open website
UK comapny formation (1).webp

About

Costa Rica

Capital
Official languages
Population 
Currency

ISO 4217

San José

Spanish

5.09 million

Colon

CRC

FAQ

FAQ for Company Formation in Costa Rica:


Q: What types of business entities can be formed in Costa Rica?

A: There are several types of business entities that can be formed in Costa Rica, including:


- Sociedad Anónima (S.A.): This is a stock corporation and the most common type of business entity in Costa Rica. It offers limited liability protection for shareholders and can be owned by foreigners.


- Sociedad de Responsabilidad Limitada (S.R.L.): This is a limited liability company that offers similar protections as an S.A., but with fewer requirements and restrictions.


- Sucursal: This is a branch office of a foreign company that operates in Costa Rica.


Q: What are the requirements for company formation in Costa Rica?

A: The requirements for company formation in Costa Rica can vary depending on the type of business entity you want to form. However, some general requirements include:


- Registering with the National Registry: All businesses must register with the National Registry and obtain a unique taxpayer identification number.


- Obtaining a business license: Depending on the type of business and its location, you may need to obtain a business license from the local municipality.


- Appointing a legal representative: All businesses must appoint a legal representative who is a Costa Rican resident and authorized to act on behalf of the company.


Q: What is the process for company formation in Costa Rica?

A: The process for company formation in Costa Rica generally involves the following steps:


1. Choose a company name and reserve it with the National Registry.


2. Prepare the company's articles of incorporation and have them notarized.


3. Open a local bank account and deposit the minimum capital required for the type of company you are forming.


4. File the articles of incorporation and other required documents with the National Registry.


5. Obtain the company's unique taxpayer identification number.


6. Register for any required licenses and permits.


Q: What are the tax implications of forming a company in Costa Rica?

A: All businesses in Costa Rica are subject to corporate income tax, which is currently set at 30% of net profits. In addition, businesses must pay social security contributions for their employees and may be subject to other taxes and fees depending on the nature of their business.


Q: Are there any restrictions on foreign ownership of companies in Costa Rica?

A: No, there are no restrictions on foreign ownership of companies in Costa Rica. Foreigners are allowed to own 100% of a Costa Rican company and there are no residency requirements for directors or shareholders.

Economy

Costa Rica has a strong and growing economy, with a GDP of $60.7 billion in 2019. This is a 4.2% increase from 2018, and the country is expected to continue to grow in the coming years. The country has a low unemployment rate of 6.2%, and a high labor force participation rate of 63.2%. The country also has a strong agricultural sector, accounting for 8.2% of GDP in 2019. The country is also a major exporter of coffee, bananas, and sugar, and is a major tourist destination, with over 2.9 million visitors in 2019. Costa Rica also has a strong manufacturing sector, accounting for 17.2% of GDP in 2019. The country has a strong financial sector, with a banking sector that is well-regulated and has a high level of capitalization. Overall, Costa Rica has a strong and growing economy, and is well-positioned to continue to grow in the coming years.

Taxation

In Costa Rica, both individuals and corporations are subject to income tax.


For individuals, income tax is progressive, with tax rates ranging from 0% to 25%, depending on income levels. There is also a 13% value-added tax (VAT) on most goods and services. Additionally, there are social security contributions and a solidary tax that is levied on high-income earners.


For corporations, the standard corporate income tax rate is 30%, with certain industries such as tourism and agriculture having reduced rates. There is also a 2.5% minimum tax on gross income, which must be paid regardless of whether the company is profitable or not.


The tax year in Costa Rica runs from January 1st to December 31st, and tax returns are typically due by the end of March of the following year. Quarterly advance payments may also be required.


In addition to income tax, there are other taxes and fees that may apply, such as stamp duties, property taxes, and customs duties on imports and exports.


The tax authority in Costa Rica is the Tax Administration, which is responsible for collecting taxes and enforcing tax laws. Payment of taxes can be made at designated banks or through online channels.


Overall, Costa Rica has a relatively high tax burden compared to some other countries in the region, but the country also provides many public services and social programs. Taxpayers are encouraged to seek advice from local tax advisors or government authorities for further information on tax obligations and requirements.

Company incorporation application form

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Legal address of director

Extra services

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