Costa Rica stands out as one of the most open countries in Latin America for business, thanks to its extensive network of regional trade agreements and its welcoming policies for foreign investors. Before starting operations in the country, it is essential to understand the different types of companies in Costa Rica. This will help you structure your business effectively.
From sole proprietorships to corporations, it’s easy to register a company in Costa Rica. There are a range of legal structures to suit diverse business needs. Understanding the differences between types of companies in Costa Rica can help you make informed decisions that align with your business objectives and regulatory requirements. With the right legal structure, you can position your business for success in this dynamic and thriving market.
Costa Rica has business-friendly policies, making all commercial processes relatively easy. Governmental policies encouraging foreign investment help the country to position itself as a top destination in both Central and Latin America. Whichever of the types of companies in Costa Rica you choose, you will be on the path to success.
2 basic types of companies in Costa Rica
The two most common legal entities in Costa Rica are:
Corporation (Sociedad Anónima – S.A)
Limited Liability Company (Sociedad de Responsabilidad Limitada – S.R.L)
1. Corporation (Sociedad Anónima – S.A):
The S.A. is the most common legal entity structure in Costa Rica. See below some of its key characteristics:
A Public Document must be drafted with the bylaws and signed by the public notary and company shareholders.
A minimum of two shareholders are required.
There is no established minimum capital.
A board needs to be appointed, consisting of three board members and a controlling agent.
2. Limited Liability Company (Sociedad de Responsabilidad Limitada – S.R.L):
The Limited Liability Company has the same requirements as the S.A., with the only exception being the administration; shareholders are required to appoint at least one General Manager. Shares are called quotas and there is no minimum required capital. However, the amount subscribed must be divisible by 100. The company name availability must also be checked on the National Registry database.
Our Recommendation: The Limited Liability Company (Sociedad de Responsabilidad Limitada – S.R.L) structure because it provides a balance of limited liability protection for its members and flexibility in management and ownership. Additionally, the S.R.L structure is well-suited for small to medium-sized enterprises seeking to establish a presence in Costa Rica.
Another option: Branches of foreign companies:
Branches of foreign companies are incorporated with a public deed signed by the Public Notary and the power of attorney of the foreign company. Due to the complexities of drafting and signing all agreements, this legal structure is not recommended for SMEs. Apart from the requisites asked by the National Registry, it is also considered more expensive than other legal entities in Costa Rica.
FAQs on Types of Legal Structures in Costa Rica
1. Can a foreigner register a company in Costa Rica?
Absolutely, foreigners can register a company in Costa Rica. However, certain restrictions or requirements may apply depending on the chosen legal entity structure.
2. What type of legal entity is an S.R.L (Sociedad de Responsabilidad Limitada) in Costa Rica?
The S.R.L is similar to an LLC type of company in other jurisdictions.
3. How do I create a company in Costa Rica?
To establish a company in Costa Rica, you need to follow specific legal procedures and fulfill regulatory requirements. It’s advisable to seek assistance from legal professionals to ensure compliance.
4. What is an LLC in Costa Rica?
An LLC, or Limited Liability Company, in Costa Rica is a hybrid legal structure that combines the flexibility of partnerships with the limited liability protection of corporations. It offers advantages such as pass-through taxation and simplified management structures.
5. What is the business structure of a Sociedad de Responsabilidad Limitada (S.R.L) in Costa Rica?
Shareholders are required to appoint at least one general manager. Shares are called quotas and there is no minimum required capital. However, the amount subscribed must be divisible by 100.
Interested in Beginning Commercial Operations in Costa Rica?
Choosing the type of company depends on which structure is best suited to your business needs. Much consideration needs to be taken before launching your operations in Costa Rica.
Given the favorable conditions in the country and the region as well as the economic growth, Biz Latin Hub through its company offers the experience and support necessary for investors to have a successful market entry in Costa Rica. Feel free to contact us now.
For more information on doing business in Latin America, check out the short video below:
As informações fornecidas aqui não devem ser interpretadas como orientação ou aconselhamento formal. Consulte um profissional para sua situação específica. As informações fornecidas são apenas para fins informativos e podem não abranger todas as leis, padrões e práticas recomendadas pertinentes. O cenário regulatório está em constante evolução; as informações mencionadas podem estar desatualizadas e/ou podem sofrer alterações. As interpretações apresentadas não são oficiais. Algumas seções baseiam-se nas interpretações ou pontos de vista de autoridades relevantes, mas não podemos garantir que essas perspectivas serão apoiadas em todos os ambientes profissionais.
La información que aquí se ofrece no debe interpretarse como orientación o asesoramiento formal. Por favor, consulte a un profesional para su situación específica. La información proporcionada tiene únicamente fines informativos y es posible que no recoja todas las leyes, normas y mejores prácticas pertinentes. El panorama normativo está en continua evolución; la información mencionada puede estar obsoleta y/o sufrir cambios. Las interpretaciones presentadas no son oficiales. Algunas secciones se basan en las interpretaciones o puntos de vista de las autoridades pertinentes, pero no podemos garantizar que estas perspectivas se respalden en todos los entornos profesionales.
The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.
Legal Team Costa Rica
Legal Team Costa Rica is the Biz Latin Hub leading experts on doing business in Rica The Team writes on the news, doing business, law, and changing regulations. The team are experts in corporate law, Administrative law, Employment law, Immigration law and legal advisory services. Read more about them here. You can contact Legal Team Costa Rica via our "contact us page".
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