Costa Rica Living – Setting up an organization is not as hard as some people perceive it to be but using a Costa Rican lawyer to make sure it is done correctly is not a bad idea.. And starting one in Costa Rica is not different from creating the same in any other part of the world. Of course, there are some factors you need to consider before taking the initial steps. Such include corporation and structure among others.
In Costa Rica, there are two major choices of organizations for an ideal business start up. Sociedad Anónima is one of the modern limited liability companies that is just right for most business start up. Setting up the same is rather simple since it is since the formation features a board of Directors consisting of the President, Auditor, Secretary and a Treasurer outside the corporation.
Another principal of Costa Rican company is the Sociedad de Responsabilidad Limitada. This type enjoys the merits of a limited liability company though it is most suitable for a smaller and less formal business start up in Costa Rica. Sociedad de Responsabilidad Limitada consists of a one-man board of directors who takes care of all the formation formalities. The corporation can be set up in a way that new member approval has to involve all shareholders.
The major steps needed in creating a corporation include:
- Checking the significant zoning regulations to make sure they allow such set-ups before carefully signing the property purchase or lease agreement.
- After signing the lease or property agreement, you will need to initiate the application for the setting up process with the relevant authorities.
- The third step is to register the corporation with the significant tax authority since tax filing and payment is a statutory requirement for any business.
- Workers in the firm will require insurance. Your next step is therefore to acquire work risk insurance for the employees in your company. Such type of insurance is obtainable from the local insurance agency.
- The corporation whether a Sociedad de Responsabilidad Limitada or a Sociedad Anónima will need registration as an authorized employer with the social security institution.
- The next step is possible only after receiving the zoning permit approval. You can then apply for a health permit with the Ministry of health authorities.
- The last step in setting up a corporation in Costa Rica is the application of a business license soon after the issuing of the health permit.
The above steps give you a legal and functional business entity, which can seek business in Costa Rica. Nevertheless, you cannot wish away the location of the business as it holds the key to successful client targeting.