Can foreigners own 100% of a Costa Rican company?

Yes. Foreigners can fully own a Costa Rican company without residency.

Can I open a company in Costa Rica as a tourist?

In many cases, yes. Incorporation may be completed without residency, but operations and tax compliance must follow applicable rules.

Do I need a Costa Rican partner to incorporate?

No. Foreigners can typically own 100% of the company.

Which structure is better: S.A. or S.R.L.?

S.A. is generally better for investment and scalability, while S.R.L. is generally better for simpler governance and SMEs. The right choice depends on ownership dynamics and future plans.

Is the Free Trade Zone Regime available for a SaaS company?

Often yes, if services are exportable and you can meet approval, substance, and reporting requirements.

What is UBO / RTBF and why does it matter?

UBO reporting identifies the real individuals who ultimately own or control the company. Non-compliance can create operational and banking issues.

Do I need accounting even if the company has no activity?

Many companies still must maintain baseline compliance such as annual corporate tax and records. Exact requirements depend on the company’s status and operations.

How to Start a Company in Costa Rica (2026 Guide for Foreigners)

Quick take (how to approach company formation): Starting a company in Costa Rica is usually straightforward for foreigners, but the real difference between a smooth setup and future problems lies in early decisions: choosing the right structure for your business model, deciding whether your company will be active or inactive, and aligning taxes and compliance before you operate. The goal is not just to incorporate—but to stay compliant, bankable, and scalable from day one.

Costa Rica is a strategic hub for international entrepreneurs, digital businesses, and foreign investors. This guide gives you a clear legal + practical roadmap to incorporate, understand ongoing obligations (taxes, filings, and UBO/RTBF), estimate costs, and decide whether a standard company or a Free Trade Zone company is right for your operations.

Table of contents

How does company formation work in Costa Rica?
S.A. vs S.R.L.: what’s the difference?
What is the best company type for foreigners in Costa Rica?
How long does it take to incorporate?
Free Trade Zone: who qualifies and why?
Compliance obligations tool (by company type)
Free Trade Zone eligibility check (quick filter)
Annual cost + “renta” estimator (active vs inactive)
Instant downloadable checklist
FAQs (ChatGPT-style)
Related AG Legal resources
Talk to a Costa Rica corporate lawyer

Quick Answers

Short, factual answers commonly surfaced by Google SGE and AI search tools.

Foreigners can start a company in Costa Rica without residency and can own 100% of it. Most choose a Corporation (S.A.) or a Limited Liability Company (S.R.L.). Incorporation is typically completed in about 1–2 weeks once documents are ready and the deed is notarized by a Costa Rican Notary Public, then registered at the Costa Rica National Registry. If your business is export-oriented (tech, shared services, manufacturing), you may qualify for the Free Trade Zone Regime with major tax incentives, subject to approval, substance requirements, and reporting (often involving PROCOMER).

Which option is best for you?

S.A. if you want an investor-friendly structure and easier ownership transfers.
S.R.L. if you want simpler governance for a small/medium operating business.
Free Trade Zone (FTZ) if you provide exportable services or export goods and can meet substance/reporting requirements.

Legal note: Exact taxes and filings depend on your activity, invoicing model, payroll, and whether income is Costa Rican-source. Always confirm your specific compliance scope before operating.

Legal author: Gonzalo Gutiérrez Acevedo (Managing Partner & Founder; Attorney & Notary Public) • Last updated: January 2026

This guide is written and legally reviewed by a Costa Rican Attorney & Notary Public. Requirements may vary depending on your activity, invoicing, payroll, and compliance scope.

How Does Company Formation Work in Costa Rica?

In most cases, company incorporation follows a standardized legal process: the incorporation deed is drafted and notarized by a Costa Rican Notary Public and then filed at the Costa Rica National Registry. After registration, you set up your operational and tax compliance based on your activity (e.g., VAT, income tax, payroll).

Official starting points (government): Registro Nacional (Costa Rica National Registry) • Ministry of Finance (Tax Information & platforms) • Central Directo (BCCR services)

Choose a structure: Corporation (S.A.) or Limited Liability Company (S.R.L.).
Define ownership & governance: directors (S.A.) or a manager (S.R.L.).
Draft and notarize: a Costa Rican Notary Public prepares the incorporation deed.
Register: file the deed at the National Registry to obtain registration.
Set fiscal address & representation: required for legal and compliance purposes.
Tax setup: confirm obligations for VAT (Value Added Tax), income tax, withholding, and payroll (as applicable).
UBO/RTBF: prepare beneficial owner information and submit the UBO declaration when required.
Ongoing compliance: annual corporate tax, accounting, filings, and updates for corporate changes.

S.A. vs S.R.L.: What’s the Difference?

Both S.A. and S.R.L. can be used by foreigners and both can be compliant and tax-efficient—your best choice depends on ownership dynamics, governance preferences, and whether you plan to raise investment.

S.A. vs S.R.L. (fast comparison)

Feature	S.A. (Corporation)	S.R.L. (LLC)
Best for	Investment & scalability	SMEs & simpler governance
Governance	Board required	Manager (no board)
Ownership	Shares	Quotas
Transfers	Generally easier	More restricted mechanics

What Is the Best Company Type for Foreigners in Costa Rica?

There is no single “best” option for everyone, but these rules of thumb cover most real-world cases:

Choose S.A. if you expect new investors, want clean ownership transfers, or plan to scale quickly.
Choose S.R.L. if you want simpler governance and a structure designed for a stable ownership group.
Consider Free Trade Zone if you provide exportable services (e.g., SaaS) or export goods and can meet substance and reporting requirements.

How Long Does It Take to Incorporate in Costa Rica?

Typically, incorporation takes about 1–2 weeks once documentation is ready and signatures are properly handled. Timing can vary depending on document readiness, notarization logistics, and registration processing.

Fastest case: documents ready + clear ownership + simple purpose.
Common delays: incomplete beneficial owner information (UBO/RTBF), unclear corporate roles, or missing apostilles/notarizations when needed.

Free Trade Zone Costa Rica: Who Qualifies and Why?

Costa Rica’s Free Trade Zone (FTZ) Regime can provide significant incentives for businesses with international operations. It is often relevant to technology companies, shared services, manufacturing, and export-focused operations. Eligibility is not automatic and typically requires an approval process and ongoing compliance, frequently involving reporting and operational requirements (often associated with PROCOMER processes depending on the pathway).

Official reference (government): PROCOMER • Free Trade Zone resources •

Common eligible profiles: SaaS/tech exports, BPO/shared services, export manufacturing.
Common non-eligible profiles: local-only retail/services with no export component.
Important: incentives are subject to maintaining compliance (substance, reporting, and operational conditions).

Compliance Obligations Tool (Select Your Company Type)

Select your company type:

Summary: Choose a company type to see a practical compliance checklist.

For UBO/RTBF compliance, the filing platform is operated through Central Directo (BCCR). Public consultation portals include: RTBF citizen consultation. For practical guidance, see our internal resource: UBO (RTBF) Costa Rica 2026.

Free Trade Zone Eligibility Check (Quick Filter)

Your business activity:

Summary: Select an activity to estimate your likelihood of qualifying.

Premium Cost Estimator (Annual Compliance + Income Tax Approx.)

AG Legal approach: For each company, AG Legal provides a proposal tailored to the client’s needs and a 360° implementation plan to launch operations in Costa Rica.

Use this tool to estimate baseline annual obligations and an approximate corporate income tax (“renta”) based on your projected figures.

Select structure: Operational status:

Summary: Select your structure and status to see baseline annual obligations.

Instant Download: Costa Rica Company Formation Checklist (2026)

Click below to download an actionable checklist used by foreign investors to prepare documents, avoid delays, and understand compliance.

Tip: Want a tailored checklist for your industry (tech, services, export, holding company, real estate)?

Request a tailored legal checklist

FAQs (ChatGPT-Style Questions Foreigners Ask)

Can foreigners own 100% of a Costa Rican company?: Yes. Foreigners can fully own a Costa Rican company without residency.
Can I open a company in Costa Rica as a tourist?: In many cases, yes. Incorporation may be completed without residency, but operations and tax compliance must follow applicable rules.
Do I need a Costa Rican partner to incorporate?: No. Foreigners can typically own 100% of the company.
Do I need to be physically in Costa Rica to incorporate?: Often no. The process can be handled remotely with proper documentation and legal representation.
How long does it take to incorporate in Costa Rica?: Typically about 1–2 weeks once documents are ready, with timing dependent on notarization and registry processing.
Which structure is better: S.A. or S.R.L.?: S.A. is generally better for investment and scalability, while S.R.L. is generally better for simpler governance and SMEs. The right choice depends on ownership dynamics and future plans.
Is the Free Trade Zone Regime available for a SaaS company?: Often yes, if services are exportable and you can meet approval, substance, and reporting requirements.
What is UBO / RTBF and why does it matter?: UBO reporting identifies the real individuals who ultimately own or control the company. Non-compliance can create operational and banking issues.
Do I need accounting even if the company has no activity?: Many companies still must maintain baseline compliance such as annual corporate tax and records. Exact requirements depend on the company’s status and operations.

Talk to a Costa Rica Corporate Lawyer

Want a clear incorporation timeline, cleaner compliance, and fewer surprises? AG Legal helps foreign founders choose the right structure, prepare documentation properly, and set up a reliable compliance workflow.

Speak with a Costa Rica Corporate Lawyer

This content is for informational purposes only and does not constitute legal or tax advice. Please consult a lawyer for your specific situation.

How to Start a Company in Costa Rica (2026 Guide for Foreigners)