Types of Business Entities in Costa Rica

1. Sociedad Anónima (S.A.) – Joint Stock Company

 Suitable for large businesses and public companies.
 Requires at least two shareholders and a board of directors.
 Liability is limited to capital contributions.
 Allows public share issuance and investor participation.

2. Sociedad de Responsabilidad Limitada (S.R.L.) – Limited Liability Company

 Best for small to medium-sized businesses.
 Requires at least two partners (but no board of directors).
 Shareholders’ liability is limited to their capital contributions.
 More flexible management compared to an S.A.

3. Sole Proprietorship (Empresa Individual)

 Owned and operated by a single individual.
 The owner is personally liable for all debts and obligations.
 Ideal for freelancers and small-scale businesses.

4. Branch Office (Sucursal de Sociedad Extranjera)

 A foreign company can set up a branch in Costa Rica.
 The parent company is fully liable for the branch’s activities.
 Requires registration with Costa Rican authorities.

Steps to Register a Company in Costa Rica

Step 1: Choose a Business Structure

 Decide on the type of entity (S.A., S.R.L., Sole Proprietorship, or Branch).
 Consider shareholder liability, taxation, and operational needs.

Step 2: Register the Company Name

 Verify name availability with the National Registry of Costa Rica.
 Choose a unique name that complies with local regulations.

Step 3: Draft and Notarize Articles of Incorporation

 Must be prepared and signed before a public notary.
 Includes company name, purpose, shareholder details, capital structure, and management rules.

Step 4: Register with the National Registry

 Submit incorporation documents to the Costa Rican National Registry (Registro Nacional).
 Pay government fees and wait for approval (usually 1-2 weeks).

Step 5: Obtain a Tax Identification Number (TIN)

 Register with Costa Rica’s Tax Administration (Ministerio de Hacienda).
 Receive a unique tax identification number (NITE) for legal operations.

Step 6: Open a Corporate Bank Account

 Choose a local or international bank in Costa Rica.
 Provide company registration documents and shareholder identification.
 Some banks may require an initial deposit for activation.

Step 7: Register for Social Security & Permits

 Enroll with the Costa Rican Social Security Fund (CCSS) if hiring employees.
 Obtain business licenses and operational permits, if required.