Costa Rica is known worldwide for being one of the safest countries in Latin America for foreign investments and this is definitely helped by the fact that the government and its entities keep a strong pro U.S.A. and continental stand when it comes to financial security and tax laws. The Costa Rican economy has been transformed and it no longer depends on coffee and agriculture, actually it now concentrates its efforts on microprocessor production and telecommunication services.
Costa Rica has made an effort to maintain an investment-friendly climate with the government policies that have welcomed several major corporations such as Intel, Microsoft, Hewlett Packard, Continental Airlines, Dole and many more. Technology and services are now generating more revenue for this Latin American country than its long running coffee industry o even its lucrative tourism industry.
Costa Rica's democracy was catalogued by the World Bank as "one of the most stable and robust" in Latin America, which provides the country with an excellent bill of overall political and economic health. They also praised Costa Rica's social indicators and its "healthy economic growth rate".
Costa Rica is generating for itself a competitive advantage and the proof of this is the many companies that have chosen this country to set up operations and with many more interested in doing the same. Costa Rica is at the turning point in integrating itself into the modern world economy, so anyone who is doing business here are on the right track.
General Outline
If you would like to establish a foreign corporation in Costa Rica these are some facts that you want to take into consideration.
Legal System
Based on the Spanish Civil Law.
Currency
The Colon, but the US Dollar is commonly used.
Language
Spanish is the official language.
Disclosure of the Beneficial Owner
Although it is required to disclose details of the Beneficial Owner to the Government Authority, Blank Endorsed Shares allow for total privacy.
Taxation
Provided that the company activities are carried on outside of Costa Rica, the company will not be subject to any income taxes therein.
Double Tax Treaties
None.
Exchange Control
None.
Name Restrictions
The Registrar of Companies reserves the right to refuse any name which is identical or strikingly similar to an existing company or, in his opinion, inappropriate or undesirable.
Names must end with S.A., to denote limited liability.
Trading Restriction
A Costa Rican Company is not permitted to conduct or carry out Banking; Insurance; Fund Management; Investment or Asset Management; Trusteeship; or any associated activity.
