company setup, legal structuring and ongoing compliance support
Company Formation in Costa Rica
Why Costa Rica?
Costa Rica stands out in Central America as a business‑friendly jurisdiction with strong legal protections and advantages for international entrepreneurs:
- Full foreign ownership allowed with no local shareholder requirement
- Territorial tax system — foreign‑sourced income generally not taxed locally
- Flexible corporate structures suitable for trading, consulting, IT, and holding operations
- No formal minimum capital requirement for most entities
- Straightforward remote or assisted incorporation process
- Access to Costa Rican and international banking solutions
Key Facts About Costa Rica
Characteristic | Details |
Legal System | Civil law with commercial code and regulated corporate processes |
Corporate Income Tax | Territorial system; domestic income taxed at progressive rates (5–30%) |
VAT / GST | Standard 13% VAT on goods/services |
Currency | Costa Rican Colón (CRC) & USD widely accepted |
Double Tax Treaties | Treaties with Germany, Spain, Mexico (subject to change) |
Minimum Capital | No fixed statutory minimum for most structures |
Types of Companies in Costa Rica
Sociedad de Responsabilidad Limitada (S.R.L.) – LLC
Overview:
The most common entity for SMEs, consultants, and holding purposes.
Key Features:
The most common entity for SMEs, consultants, and holding purposes.
Key Features:
- Flexible management and quota structure
- Limited liability protection
- Can be managed remotely with a local representative for compliance
- Simple compliance requirements
- Ideal for small or owner‑managed businesses
- Suitable for: Startups, consulting firms, small‑scale trading, holding vehicles
Sociedad Anónima (S.A.) – Corporation
Overview:
Preferred for larger operations, external investment, and structured governance.
Key Features:
Preferred for larger operations, external investment, and structured governance.
Key Features:
- At least two shareholders required
- Board roles and formal governance
- Stronger governance for investor confidence
- Easier to issue and transfer shares
- Suitable for: International trading, funded ventures, larger consultancies
We create global legal solutions
How It Works
Initial consultation and structure selection
Company name check and reservation
Due diligence and compliance review
Preparation of incorporation documents
Company registration with the registry
Delivery of corporate documents
Required Documents
From the client:
- Certified copies of passports for all shareholders and directors
- Proof of address and identity (utility bills, bank statements)
- Company name reservation
Prepared as part of the service:
- Articles of incorporation drafted by a Costa Rican notary
- Drafting and notarisation of incorporation documents Registration with the Costa Rican National Registry and Tax Authorities
- Assistance with registered office, UBO filing, and compliance setup
Taxation and Compliance
Corporate Tax
Costa Rica applies a territorial tax regime — only income generated within Costa Rica is taxed.
Costa Rica applies a territorial tax regime — only income generated within Costa Rica is taxed.
- Progressive rates from 5% to 30% depending on income level
- Foreign‑sourced income typically not taxed locally if company has no Costa Rican activities
- Standard 13% VAT (IVA) on domestic goods/services
- Monthly filing and record‑keeping required
- Annual tax filings with Hacienda
- Corporate books and resolutions maintained locally
- Social security registration if staff employed
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Bank Account Opening
Costa Rica offers corporate banking options, but approval is at the bank’s discretion.
- Requires company documents, beneficial ownership information, and compliance checks
- Local accounts may be needed for tax payments and operations
Bank approvals are subject to independent bank policies and compliance checks.
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Please pay attention:
Bank account opening is subject to independent bank approval and cannot be guaranteed.
Some international banks may have additional requirements for Costa Rica entities, particularly for foreign owners or high-risk jurisdictions.
Bank account opening is subject to independent bank approval and cannot be guaranteed.
Some international banks may have additional requirements for Costa Rica entities, particularly for foreign owners or high-risk jurisdictions.
We create global legal solutions
Frequently Asked Questions (FAQ)
Registration typically takes about **3–6 weeks**, depending on notary and registry processing times
Yes. Foreigners can own 100% of most company types with no local shareholder requirement.
Companies must appoint a local legal representative for compliance, but directors can be foreign nationals.
Domestic income is taxed at progressive corporate rates (5–30%). Foreign‑sourced revenue may be exempt under territorial rules. VAT at 13% applies to domestic transactions.
Yes. Many companies are formed remotely with the help of a service provider, though certain steps (notary signing) may require coordination.
Ready to Register a Company in Costa Rica?
Book your free 30-minute consultation to get expert guidance on company setup, banking, and compliance in Costa Rica.
Why MyFirm Global?
- Experience with international corporate structures
- Multi-jurisdictional approach
- Focus on compliance and long-term support
- Assistance beyond incorporation
