Key legal considerations and steps for entrepreneurs and companies planning to establish or expand their operations in Costa Rica.
Why Costa Rica?
Costa Rica is an increasingly attractive destination for doing business due to its:
- Political and economic stability
- Free trade agreements with over 50 countries
- Skilled, bilingual workforce
- Strategic location in the Americas
- Special free trade zones and tax incentives
At Grupo Alfaro Prieto, our team of corporate lawyers and notaries provides complete legal support for foreign entrepreneurs and companies expanding into the Costa Rican market.
1. Choose the Right Legal Structure
The most common legal entities in Costa Rica are:
- Sociedad Anónima (S.A.) – Suitable for medium to large operations; board of directors required.
- Sociedad de Responsabilidad Limitada (S.R.L.) – Ideal for smaller businesses and startups. Fewer formalities.
Grupo Alfaro Prieto helps you choose and establish the most appropriate structure based on your business goals and tax planning.
2. Register Your Company
To legally incorporate your business, you must:
Draft and sign the company’s articles of incorporation before a Costa Rican notary public. Register the company with:
- National Registry (Registro Nacional)
- Tax Authority (Ministerio de Hacienda)
- Municipal government where your business will operate
We take care of the full company formation process, including notarial deeds, corporate books, and tax registration.
3. Open a Corporate Bank Account
You will need:
- A copy of the company’s legal documents
- Identification for shareholders and legal representatives
- Proof of source of funds (for anti-money laundering compliance)
We guide you through the bank selection, compliance requirements, and documentation process.
4. Obtain Local Business Permits and Licenses
Depending on your industry, you may need:
- Municipal business license (Patente Comercial)
- Health permit (Permiso Sanitario) from the Ministry of Health
- Environmental or sector-specific licenses
Grupo Alfaro Prieto can handle these permit applications on your behalf and ensure ongoing compliance.
5. Understand Tax Obligations
Costa Rica has:
- A corporate income tax that varies based on revenue
- VAT (13%) on most goods and services
- Withholding taxes and mandatory filings for employers and freelancers
Our firm provides tax advisory services and works with licensed accountants to ensure full compliance with local tax law.
Hire Employees and Comply with Labor Laws
If you plan to hire staff, you must:
- Register as an employer with CCSS (Costa Rica’s social security system)
- Sign labor contracts (written or verbal)
- Comply with laws on wages, working hours, benefits, and terminations
Our legal team drafts compliant employment contracts, handles risk management, and advises on labor disputes.
7. Protect Your Intellectual Property
It is highly recommended to register:
- Business name / commercial brand
- Logos and trademarks
- Patents or copyrighted material (if applicable)
We manage registrations through the National Intellectual Property Registry and defend your IP rights in Costa Rica.
8. Consider Immigration and Work Permits
Foreign business owners or key executives may apply for:
- Investor residency
- Temporary residency with a work permit
- Legal representation status for board members
Our immigration and notarial specialists coordinate all residency and work permit filings for you and your team.
Final Thoughts
Doing business in Costa Rica is a promising opportunity — but it must be done right. Each legal step matters, from incorporation and licensing to labor compliance and immigration.
At Grupo Alfaro Prieto, our bilingual team of notaries and corporate attorneys offers personalized guidance at every stage of your business journey. Whether you’re setting up a startup, launching a regional office, or investing in local assets — we ensure a secure, compliant, and efficient experience.
