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Are you an entrepreneur and looking for earning opportunities in Costa Rica? The country is full of opportunities for those who are looking for new challenges.
If you have the chance of moving here and starting your own business, you should take it with both hands. Dream, plan, and act.
You will face many challenges when planning to initiate a new business at a new location. But you will be rewarded with hard work and devotion once you have initiated the business.
We are here with a few entrepreneur tips for you to start a new business in Costa Rica.
Reasons to Start Business
First, you must understand the reason and your core objective why you want to start a new business in another country that is not yours.
- Your main objective might be an adventure. If you’re not up for an adventure, and some risk that comes with it, don’t start.
- Maybe you and your family planned to move to this beautiful country all along. Nonetheless, that is not an easy task, as you will have several mouths to feed.
- You have been a successful entrepreneur in your home country and like the challenge of trying it in a new country.
There are two very important matters to take care of before you take steps to become an entrepreneur here:
You need a special visa if you do not have a work visa. You can work and earn in Costa Rica only if you are a citizen or have a permanent residency visa.
It’ll be necessary to decide to either ship your household or start from scratch. Check for the cost of buying a new household after arrival and contact service providers like San Francisco International Movers to bring your own.
How to Get a Permanent Residency Visa?
There are several ways to get a residency visa that allows an entrepreneur to work. You should check all your options, but the investor option is probably the best. Please do check on the requirements with a residency expert at all times.
Why Getting a Work Visa is Difficult?
The country’s labor laws give preference to the local workforce unless you start your own business or invest in reforestation. When you want to work as an employee, there are few options unless you are a specialist in your field, which a local employee cannot do. If the company that you work for is large enough, you might have a chance to be allowed to work as a manager.
Tips to Start Business in Costa Rica
Initiating a new business is allowed even if you do not have permanent residency status. You don’t have to be a legal resident to start a business, but you do have to be one to be able to work, even in your own business.
Before starting a business, remember that a few businesses are easy start-ups, but others are complex ones to initiate. Here are some important tips that might help you if you plan to start your business in Costa Rica.
1. Choose the Structure of Your Business
Here, businesses do not always have the same structure as in other countries. The structure may vary in terms of people participating in the business, the business’s niche, complexity, employer’s obligations, needed labor, and liability insurance.
2. Select an Official Business Name
You can select a name for your business according to the products or services. See if you should register the trademark for your protection or not. Hire a trademark specialist for this.
3. Obtain Permits and License
Getting a business license is mandatory, depending on the nature of your business. You must look for the requirements you must fulfill at the municipality where you’ll install your business.
4. Register with the Tax Office
You will surely have to invoice your clients for the products or services you sell them. Check if you have to charge Value Added Tax and income tax and hire an accountant.
It is mandatory to register any employees with the Social Security system (C.C.S.S.) as well as the Instituto Nacional de Seguros (I.N.S.) for the mandatory liability insurance (riesgos del trabajo).
6. Declare the Shareholders and Beneficial Owners
Shareholders of any business registered as a corporation must declare as such in the Shareholder Registry, or Registro de Transparencia y Beneficiarios Finales, to the Central Bank.
7. Have Digital Signatures
To have a business, the business’s legal representative must declare the shareholders and be a citizen or a legal resident. If not, you can hire a lawyer or someone you trust to do this for you. You need the digital signature when declaring corporation owners to the Central Bank. For this, a card connecting to an online digital signature software to sign digitally is needed. You can get this card from your bank.
8. Corporation Tax
If you run a business through a corporation, a “Sociedad Anónima”, or a “Limitada”, you’ll have to pay corporation tax before the Do not just rely on the given numbers that you can see in the financial statements. Do not believe in the salesperson if you are buying an existing business. Carefully check and re-check yourself.
9. Stay Diligent
Always comply with the local laws, rules, and regulations. Labor laws are necessary to fulfill, and keep in mind that any negligence can lead to a major loss. Judges and courts in Costa Rica are always on the side of laborers rather than employers.
If you find these entrepreneur tips helpful, please mention them in the comments. Happy sharing!
Used in featured image: Through photo created by wayhomestudio – www.freepik.com