What Can You Do with a Company in Costa Rica?
Company Formation in Costa Rica is a good choice for many entrepreneurs and business people. The country is known for its stability and investor confidence. Costa Rica companies can be used for asset protection including real estate, yachts, and securities. They’re also suitable for launching blockchain and cryptocurrency-based businesses as the authorities look favourably on these sectors. A number of such businesses have been established there including cryptocurrency brokers, bitcoin gambling companies, and enterprises that harness blockchain technology.
Background & General Outline
Costa Rica is located in Central America, bordered by Panama, Nicaragua, the Pacific Ocean and the Caribbean Sea. Known as the most stable country in the region, it has a population of 5 million, 334,000 of which live in the capital of San Jose.
Its economy was once reliant on agriculture but has diversified, resulting in a boom in tourism, finance, and the corporate services sector. Some 99% of Costa Rica’s energy comes from renewable sources and the country is on target to be carbon neutral by 2021. It’s the only country in the world that meets all five UN criteria, developed to measure environmental sustainability.
Residents of Costa Rica enjoy a high standard of living, some of the best education in Central America, and a stable social and political system. For business, English is often spoken but the country’s official language is Spanish. The official currency is the Costa Rica Colon but dollars are widely used.
Political Structure & Legal System
Costa Rica is a member of the Organization of American States, the Community of Democracies, and the United Nations. It’s also home to the Inter-American Court of Human Rights and the United Nations University of Peace. The country abolished its military in 1948 and invested all of the budgets into education and healthcare.
In terms of politics, Costa Rica is a presidential, representative democratic republic that enjoys a fully-fledged multi-party system. The President, elected for four years at a time, is the head of the government as well as the head of state.
The country’s legal system is based on Civil Law, influenced by the Roman criminal system.
Name Restrictions for Company Formation in Costa Rica
When you create an offshore company in Costa Rica you cannot name it after an already existing company. You also cannot give it a name that is similar to an existing company. Companies are not allowed to use names that could be offensive or that suggest the patronage of the government.
Company names in Costa Rica must have S.A or S.R.L at the end.
If you choose company formation in Costa Rica, you’re not allowed to carry out banking, insurance, mutual fund management, or public investment management.
Taxation in Costa Rica
Costa Rica is a territorial tax jurisdiction meaning that residents and non-residents are only taxed on revenue generated in-country. If you’re generating revenue inside the country, tax is set at 30%.
Double Taxation Treaties
If you incorporate a company in Costa Rica, you can enjoy the benefits of double taxation treaties with Germany, Mexico, and Spain. Costa Rica has also signed an exchange of information agreement with the US to encourage the correct application of tax rates in both countries.
Accounting & Financial Statements
Companies that are incorporated in Costa Rica must prepare annual financial statements. These should be in Spanish and kept for a minimum of ten years. There is no requirement to carry out any form of an audit.
Disclosure of Beneficial Owner
The owners of an offshore company in Costa Rica must disclose their identities to the authorities. As well as providing details of the Ultimate Beneficial Owners, the yearly tax return must disclose the UBOs as well. These records are not available to the public.
Capitalization Requirements for Company Formation in Costa Rica
When incorporating an offshore company in Costa Rica, you are required to pay up a minimum of CRC 2,500. The standard authorised share capital totals CRC 10,000 (see currency converter), split between 100 shares of CRC 100 each.
There are no exchange controls on currency in Costa Rica.
How Much Does Company Formation in Costa Rica Cost?
With our Formation Package, you can get your Costa Rica Offshore Company for as little as $1,950. To learn what the Formation Package includes, and to get full price details, related documents and services click on the button below:
Contact Us for Company Formation in Costa Rica
Costa Rica Company Formation is a great choice for entrepreneurs looking to launching crypto business companies. Contact us today to get your offshore company registered in Costa Rica.
More Locations to Incorporate Your Company
Not sure about Costa Rica? No problem! There are several other locations to consider. Select any of the countries below to learn more: