Costa Rica is one of the smallest countries in Central America, with a population of less than five million people. It is considered that Costa Rica was discovered by Christopher Columbus, but before him territory was inhabited by Indians-guaymi. The country has no major natural resources, so most of the Spanish colonizers were quite poor, what in turn affected the farming types - mainly small and medium-sized farms. Country gained independence in 1821. In today's world, Costa Rica is known as a supplier of various foods, such as sugar, coffee and bananas, as well as a tourist destination, and for a favorable tax system.
The most common business entities
Foreign company’s advantageous registration form is a stock company (SC)
The main features
There territorial tax principle is used; are relatively high demands on the company's directors and shareholders. Beneficiary anonymity is fixed by law.
Spanish Corporate Legislation served as a basis for the development of Costa Rican Corporate Legislation. Later it was influenced by French law and US constitutional system. In general, the law can be attributed to the Roman-Germanic group.
The minimum capital requirements for SC are not established but at the moment of registration at least one quarter of it must be stated.
The main requirements for directors and shareholders
According to Costa Rican legislation, the company's directors must be company employees in management positions. The Board of Directors must have at least three members. Meeting places of board of Directors should be defined in the memorandum of association, but the directors must personally participate in meetings. There are no restrictions on residency of directors, the information about them is disclosed to Corporate Legislation Register.
There must be at least two shareholders. They have to hold an annual shareholders' meeting.
Disclosure of the company's beneficial to government bodies
Beneficiary anonymity is fixed at the legislative level and is not disclosed.
Territory of the country has a number of free trade zones with lower tax rates or at all without them. But in general, companies are required to pay several taxes such as income tax.
All registered companies need to create and keep accounting records, but there is no need to submit financial statements.