Originally published in October 2015. Updated October 2025 for accuracy and relevance.
Why Costa Rica Is a Top Destination for Non-Resident Entrepreneurs
Costa Rica has evolved into one of Latin America’s most business-friendly and transparent jurisdictions. Its combination of political stability, legal certainty, and sustainable development policies makes it ideal for investors seeking a secure, reputable base for international operations.
Key Advantages
| Feature | Why It Matters |
|---|---|
| Political Stability | One of the region’s oldest democracies, ensuring predictable business conditions. |
| Reputation | Costa Rica is recognized for ethical governance and not classified as a tax haven. |
| Strategic Location | Central America hub—quick access to the U.S., Latin America, and the Caribbean. |
| Tax Benefits | Foreign-sourced income is typically exempt from local taxation. |
| Pro-Business Legal Framework | Robust corporate and property rights protection. |
| Global Banking Access | Local banks maintain strong relationships with international financial institutions. |
💡 Costa Rica offers a reputation-safe alternative to traditional offshore centers while maintaining efficiency and privacy for global investors.
Types of Companies Available for Non-Residents
Foreign entrepreneurs can register several company types in Costa Rica, but the two most popular are:
| Entity Type | Equivalent Structure | Ideal For |
|---|---|---|
| Sociedad Anónima (S.A.) | Corporation | Medium to large-scale businesses, holding companies, or investors needing share transferability. |
| Sociedad de Responsabilidad Limitada (S.R.L.) | Limited Liability Company (LLC) | Smaller businesses or partnerships seeking flexibility and low maintenance. |
Quick Comparison
| Feature | S.A. | S.R.L. |
|---|---|---|
| Minimum Shareholders | 2 | 2 |
| Share Transfer | Freely transferable | Requires member approval |
| Management | Board of Directors | One or more managers |
| Ideal For | Large enterprises | SMEs and consulting firms |
Benefits of Costa Rica Company Formation for Non-Residents
| Benefit | Explanation |
|---|---|
| Asset Protection | Legally separates your personal and business assets. |
| International Credibility | Costa Rica’s clean financial image enhances investor confidence. |
| Tax Optimization | Exemption on foreign-earned income under the territorial tax system. |
| Banking Flexibility | Easier local bank account setup compared to many offshore jurisdictions. |
| Confidential Ownership | Limited public disclosure of shareholder details (while maintaining compliance with AML rules). |
| Access to Residency | Business owners may qualify for investor or entrepreneur residency programs. |
Potential Challenges for Non-Residents
| Challenge | Details |
|---|---|
| Language | Legal and administrative processes are in Spanish. Translators or bilingual advisors are essential. |
| Bureaucracy | Processes can involve multiple institutions; professional guidance helps avoid delays. |
| Due Diligence | Enhanced AML and KYC regulations require full identity verification. |
| Ongoing Reporting | Annual filings and beneficial ownership disclosure are mandatory. |
| Local Representation | You must maintain a registered office and agent within Costa Rica. |
💬 Professional legal and accounting assistance is strongly recommended for non-resident investors.
Requirements to Register a Company in Costa Rica
To register a company as a non-resident, you’ll need to provide the following:
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Proposed Company Name – Must be unique and approved by the National Registry.
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Registered Agent – A local Costa Rican representative or law firm.
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Shareholders and Directors – Minimum two individuals or legal entities (can be non-residents).
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Articles of Incorporation (Estatutos) – Outlining business objectives, capital, and governance.
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Proof of Identity – Notarized passport copies of shareholders/directors.
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Corporate Address – Physical location within Costa Rica (can be your agent’s office).
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Capital Declaration – No minimum capital required, but must be declared in local currency.
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Due Diligence Documents – Proof of funds, business plan, and compliance documentation.
Step-by-Step: Costa Rica Company Formation Process
| Step | Action | Responsible Party |
|---|---|---|
| 1. Consultation | Assess your business objectives and structure options. | Legal or corporate advisor |
| 2. Name Reservation | Reserve your company name with the National Registry. | Legal representative |
| 3. Document Drafting | Prepare and notarize Articles of Incorporation. | Notary Public |
| 4. Registration | File incorporation documents with the National Registry. | Lawyer or agent |
| 5. Tax ID (Cédula Jurídica) | Obtain a corporate tax identification number. | Dirección General de Tributación |
| 6. Municipal License | Apply for local business permit (Patente Municipal). | Local municipality |
| 7. Bank Account Setup | Open a corporate account in a local bank. | Company representative |
| 8. Digital Signature (Firma Digital) | Required for tax and government filings. | Legal representative |
⏱️ Estimated timeline: 3–5 weeks, depending on document processing and verification speed.
Taxation Overview for Costa Rica Companies
| Tax Type | Applies To | Rate / Note |
|---|---|---|
| Corporate Income Tax | Locally sourced income | 5%–30% (progressive) |
| Foreign Income | Income earned abroad | Exempt under territorial system |
| VAT (IVA) | Goods and services sold in Costa Rica | 13% |
| Annual Corporate Tax | All registered entities | Fixed yearly amount (based on company size) |
💡 Costa Rica’s territorial tax system makes it particularly advantageous for international entrepreneurs operating abroad.
How Our Professional Team Assists You
| Service | What We Provide |
|---|---|
| Incorporation Advisory | Tailored consultation to select the optimal company type. |
| Legal Drafting | Preparation of all corporate and notarial documents. |
| Registered Agent Services | Local representation and compliance maintenance. |
| Bank Account Support | Guidance through Costa Rican banking requirements. |
| Due Diligence & Compliance | Collection and review of KYC/AML documents. |
| Ongoing Administration | Annual filings, tax submissions, and renewals. |
| Tax & Residency Planning | Coordination with qualified advisors for international tax efficiency. |
📞 Partnering with our experts simplifies every step—from incorporation to daily compliance—ensuring your Costa Rican company operates smoothly and lawfully.
Final Insights: Is Costa Rica Right for You?
Costa Rica stands out as a transparent, stable, and ethically recognized jurisdiction for non-resident business owners. Its territorial tax regime, legal reliability, and investment-friendly climate make it ideal for international entrepreneurs seeking both credibility and protection.
Before incorporating:
- Assess your tax obligations in your home country.
- Work with licensed Costa Rican corporate advisors.
- Maintain full compliance with local and international laws.
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🚀 With the right support, registering a company in Costa Rica can open doors to global business expansion—securely and efficiently.
Need help registering a Costa Rica Company?
Our experienced team at BRIS Group is ready to guide you through the entire process — from name reservation and documentation to successful incorporation.
Contact us at [email protected] for personalized assistance.
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