How to Start a Business in Costa Rica – Complete Legal Guide (2025)
Starting a business in Costa Rica is a smart move for entrepreneurs targeting the U.S.–LatAm corridor. With political stability, strong rule of law and FTA access, Costa Rica is a prime destination for company registration, business licenses and nearshore operations. AG Legal has guided hundreds of foreign founders through incorporation, tax, social security and banking—end‑to‑end. Schedule a ConsultationWhy Choose Costa Rica for Your Business?
- Strategic location: access to North & South America; ideal for U.S. investors and nearshoring.
- Political & legal stability: reliable courts and pro‑business regulatory environment.
- Sustainability leadership: great fit for eco‑tourism, renewable energy, agtech.
- Talent & FTAs: bilingual workforce; trade access to U.S., EU and Asia.
Legal Requirements & Steps to Register a Company in Costa Rica
To register a company in Costa Rica, complete these steps:- Incorporation at National Registry – Draft and file Articles of Incorporation, define shareholders, company purpose and representation.
- Tax ID (Ministerio de Hacienda) – Corporate identification number and virtual tax office setup.
- Social Security (CCSS) – Employer registration to contribute to healthcare and pensions.
- Municipal license – Apply for the local patente and any sector permits.
- Corporate bank account – Due diligence/KYC with local banking partners.
Business Structures: S.A. vs SRL (LTDA)
Sociedad Anónima (S.A.)
- Corporation with limited shareholder liability.
- Flexible for boards, investors and complex share structures.
- Good for larger or growth‑oriented operations.
Sociedad de Responsabilidad Limitada (SRL / LTDA)
- Limited liability company; simpler governance.
- Common for SMEs and new entrants.
- Ownership via quotas; straightforward compliance.
Foreign Investors & Immigration
Foreigners may own 100% of a Costa Rican company. Residency isn’t required to own, but is required if you will work in the company. AG Legal supports:- Residency / work authorization pathways for founders and executives.
- Corporate governance, registered address and compliance.
Can I run the business from the U.S. while I set up?
Yes. Many clients start remotely and apply for residency once operations begin. We structure representation so your company can function from day one.
Municipal Business License (“Patente”)
- Submit: incorporation docs, corporate tax ID, zoning/health permits if applicable.
- Sector permits: e.g., restaurants (health & safety), construction (engineering boards), tourism (ICT).
Open a Corporate Bank Account
You will typically need: company formation documents, corporate tax ID and valid identification. Through partners (e.g., Banco de Costa Rica), we coordinate KYC/AML to expedite onboarding.Taxes & Social Security (CCSS)
Companies pay corporate income tax (tiered by revenue) and must contribute to the Costa Rican Social Security Fund (CCSS). Our sister firm AG BPO Services manages accounting, payroll and filings for full compliance.Opportunities & Challenges
Opportunities: tech & shared services, eco‑tourism, renewable energy, specialty agriculture, medical devices. Challenges: permitting timelines, documentation standards and higher operating costs relative to neighbors—mitigated by stability, talent and legal certainty.Frequently Asked Questions
How long does company registration in Costa Rica take?
Most incorporations can be structured in a few business days once documentation is complete. Sector permits and municipal licenses can add time depending on activity and location.
Do I need to be in Costa Rica to incorporate?
No. With proper powers of attorney and notarizations, we can complete most steps remotely and schedule in‑country tasks when convenient.
Which is better: S.A. or SRL?
SRL (LTDA) is simpler for SMEs; S.A. offers more flexibility for boards/investors. We recommend based on ownership, governance and financing plans.