Costa Rica has become a leading destination for international entrepreneurs, digital nomads, and investors seeking to establish a business in a politically stable, economically dynamic, and tax-friendly environment. Known for its strong legal framework, territorial tax system, and investor-friendly policies, Costa Rica offers a straightforward path to company incorporation for both residents and foreigners.
This FAQ section provides clear, practical answers to the most frequently asked questions about starting a business in Costa Rica. Whether you’re planning to operate a local venture, establish a holding company, or manage international investments, understanding Costa Rica’s company laws and compliance obligations is key to a successful setup.
The most common legal entity used by foreign investors is the Sociedad Anónima (S.A.) or Sociedad de Responsabilidad Limitada (S.R.L.), both offering limited liability and flexibility in management. Incorporation is relatively fast and affordable, but requires appointing legal representatives and registering with the National Registry, Tax Department (Hacienda), and Central Bank (BCCR) for ultimate beneficiary declaration.
Costa Rica does not tax income earned outside the country, making it particularly attractive for offshore service businesses and international entrepreneurs. However, local compliance—including annual declarations, tax filings, and UBO registration—must be carefully managed.
Whether you’re asking how long it takes to incorporate, whether a local director is required, or how to open a bank account in Costa Rica, this FAQ page is designed to address your most pressing concerns. BRIS Group provides expert assistance with company registration, nominee services, registered office, and full post-incorporation support.
Explore the questions below to learn more about incorporating in Costa Rica, or contact us for tailored guidance from our experienced international team.
Frequently Asked Questions About Costa Rica Company Formation
Costa Rica offers a favorable environment for international entrepreneurs, thanks to its territorial tax system, stable legal framework, and openness to foreign investment. This FAQ section answers key questions about registering a company in Costa Rica, including entity types, legal requirements, tax obligations, and setup timelines. Whether you’re launching a local business or establishing an offshore structure, these FAQs provide essential guidance to help you get started with confidence.
1. Can a foreigner start a business in Costa Rica?
Yes, foreigners can fully own and operate a business in Costa Rica without needing a local partner. You can register a Sociedad Anónima (S.A.) or Sociedad de Responsabilidad Limitada (S.R.L.), both offering limited liability. However, a resident legal representative is typically required for compliance and government filings.
2. What is the best type of company to open in Costa Rica for foreigners?
For most foreign investors, the S.R.L. (Limited Liability Company) is the preferred structure due to its simplified management and flexibility. An S.A. (Corporation) is also commonly used when issuing shares or dealing with investors. Both structures provide full foreign ownership and asset protection.
3. How long does it take to register a company in Costa Rica?
Company registration in Costa Rica usually takes between 2 to 4 weeks, depending on documentation, name approval, and processing times at the National Registry. BRIS Group can streamline this process by handling all legal steps and filings on your behalf.
4. What are the tax benefits of incorporating in Costa Rica?
Costa Rica operates a territorial tax system, meaning income earned outside the country is not subject to local tax. This makes it attractive for international businesses. However, local income is taxed at rates ranging from 10% to 30%, depending on annual earnings.
5. Do I need a local address to form a company in Costa Rica?
Yes, you must provide a registered legal address in Costa Rica for your company, which is required for government correspondence. BRIS Group offers registered office services to fulfill this requirement for foreign clients.
6. Can I open a corporate bank account in Costa Rica as a non-resident?
Yes, non-residents can open a business bank account in Costa Rica, but banks typically require in-person verification, company documents, and proof of economic activity. BRIS Group assists with introductions to local banks and preparation of required documents.
7. What are the annual compliance requirements for Costa Rican companies?
Costa Rican companies must file:
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Annual tax declarations with Hacienda (Ministry of Finance)
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An Ultimate Beneficial Owner (UBO) report with BCCR
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Yearly legal and accounting records
Failure to comply may result in fines or company suspension. BRIS Group offers full compliance management.
8. Is Costa Rica good for setting up an offshore business?
Yes, Costa Rica is a strategic location for offshore service businesses, thanks to its territorial tax regime, ease of company formation, and strong privacy laws. It’s ideal for consultants, digital entrepreneurs, and asset protection structures.
9. What is the minimum capital requirement to start a company in Costa Rica?
There is no minimum capital requirement by law. However, a nominal amount is usually declared during incorporation (e.g., CRC 10,000 or more) and is recorded in the company’s bylaws. There is no obligation to deposit this into a bank account initially.
10. Do I need a visa or residency to own a company in Costa Rica?
No, you do not need residency to own a company in Costa Rica. However, if you plan to live and work in Costa Rica, you may need to apply for a residency permit or investor visa. BRIS Group can connect you with immigration professionals if required.
Interested in setting up an offshore company in Costa Rica?
Visit our Costa Rica Company Formation page for detailed guidance, packages, and expert support tailored to your needs.
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