Follow These 5 Steps for Company Formation in Costa Rica
Costa Rica, a country of Latin America is ranked as the 5th best economies of the world. The laws of this country not only protect the investment made by the investors but also makes it easier to set up the company. During the entire process of company formation in Costa Rica, following are the five aspects which one must follow:
Opening a bank account
The new companies that are looking forward to invest in Costa Rica can open a local bank account through dollars, euros. Costa Rica has anti-money laundering where the company must meet the specified requirements to get the approval for opening a bank account.
If your company is going to make transactions more than USD $1500, then it is necessary to provide documentation proof for the purpose of the transaction and any amount smaller than this doesn’t require any documents. All the income generated must be presented from the accountant and other permits.
Tax Policies of Costa Rica
The company formation in Costa Rica requires an annual fee and it must present monthly and annual reports. The tax policy of Costa Rica is advantageous as the company need not pay taxes coming from other regions.
Company Structure in Costa Rica
The structure of a company in Costa Rica depends on the purpose of the business and two main business company structures are:
Easy to establish, Sociedad anonima can be created by having 2 shareholders and four board members. This type of company structure doesn’t require registration of shareholders and the books are keep private. To establish this type of corporation, you must pay an annual fee.
Limited Liability Company
Sociedad de Responsabilidad Limitada can be easily created and it is quiet similar to Sociedad anonima where one needn’t maintain registry of shareholders and the book keeping is private. In this type of company structure, one shareholder is required. The company’s administrative work is carried out by a manager and however the company may hire sub managers. This type of corporation needs to pay an annual fee whether or not the company carries out commercial activity.
Every company formed in Costa Rica must have a legal representative or a lawyer who will reside in this region.
All the activities carried out in the company must be governed by laws. The companies that manages third parties requires authorization to carry out smooth operations. Any changes made to the bylaws of the company must be publicly notified and it invites many expenses such as registration fees, publication on the national paper hence the company must establish its ground rules and guidelines at the beginning.
Company formation in Costa Rica requires a good knowledge about the laws and regulations here. Forming a company in this Latin American country is not time consuming and the protective laws here make the investors feel secure about their huge investment made.