When you think of Costa Rica you probably think of stunning rainforests and beautiful beaches, not company incorporation. But the country actually offers a flexible business environment, great fiscal benefits, a good level of privacy, and a fast and efficient incorporation process.
With investor confidence growing, Costa Rica is starting to make its mark as the Central American jurisdiction of choice for companies, start ups, and individuals who are looking for a base. So why should you consider company incorporation in Costa Rica?
First of all, whilst yes Costa Rica is located in Central America, you should know that it is a bilingual country and that most of the population speak both Spanish and English. Those incorporating locally can choose to incorporate in either language.
In terms of incorporating a company, only four individuals are needed and these include President, Secretary, Controller and Treasurer. These individuals will appear on the public record, listed as Board Directors. The country offers a high level of anonymity as well as shareholders are not obliged to appear on public records. In addition to this, there are no accounting or reporting requirements so local companies are not obliged to do either.
The actual setting up of the company can take between 20 and 40 days once all of the paperwork is submitted. This is much quicker than many other jurisdictions and offers a streamlined service for those that want to get the ball rolling quickly.
In terms of tax, like many other countries throughout the region, Costa Rica offers great benefits to companies registered there. Due to a territorial taxation principle, a company is only required to pay tax on income that is generated within Costa Rica. Any income generated from a Costa Rica company, outside of the country is not taxable.
Not only is Costa Rica a member of the World Trade Organisation which has greatly helped with their transition from a predominantly agricultural economy to an innovative and modern society, but there are a number of free trade agreements in place. Countries who enjoy free trade agreements with Costa Rica include the U.S, Mexico, Canada, and Chile.
It is also considered as an economically stable jurisdiction with moderate inflation at 2.6% during 2017. Its GDP is experiencing a moderately high growth and there are a growing number of foreign companies operating there. Thriving industries include pharmaceuticals, financial services, software and eco tourism.
The population are highly educated and a growing number are showing interest in working in the countries newest and most innovative industry- blockchain and crypto.
Costa Rica is one of the few countries in the world where employees can opt to be paid in cryptocurrency. As well as this, the government have a very friendly stance towards businesses operating within the blockchain or crypto sphere and as a result the number of businesses choosing to operate in Costa Rica is growing.
iGaming is also big business there and it is a great place for startups and small businesses who are looking for a low cost jurisdiction that doesn’t require a specific online gambling license.
Fast Offshore have been working in Costa Rica and other jurisdictions for over two decades and we specialise in corporate services including company formation, bank account opening, and various forms of corporate advice and guidance. We are well versed in assisting online gambling operators with their needs and we work extensively within the crypto and blockchain sphere. To find out more and to see how we can help you achieve your goals, get in touch today.