How to register a company in Costa Rica: The complete guide

Costa Rica: business ready, built for growth

Costa Rica offers a pro-business environment, a strategic position in the American continent, and a rapidly growing economy. The country can be a good choice for establishing operations, especially owing to its competitive costs and streamlined registration through the National Registry (Registro Nacional) to facilitate business setup. Additionally, Costa Rica actively supports foreign investment, providing a robust foundation for scaling businesses in one of Latin America’s most dynamic markets.

The business benefits of registering your company in Costa Rica 

Costa Rica is becoming a leading choice for global business expansion, thanks to its stable economy and investor-friendly policies. For HR leaders and decision-makers, operating in Costa Rica provides a strategic advantage with a straightforward approach to managing operations.

Why Costa Rica is ideal for business growth:

• Optimize operational costs with competitive expenses and access to a highly skilled workforce.
• Streamline setup with efficient registration through the National Registry (Registro Nacional).
• Leverage tax incentives tailored for export-oriented industries.
• Operate efficiently with robust infrastructure and free trade zones.
• Reach new markets with access to a dynamic Central American consumer base.

Costa Rica delivers stability, accessibility, and growth potential, positioning itself as a strategic choice for businesses entering the Central American market.

Next, we’ll explore your business setup options—standard company registration, business licensing, and Employer of Record (EOR)—to help you identify the best fit for your business goals.

What are the options for setting up a business in Costa Rica?

Businesses planning to establish a presence in Costa Rica have two primary pathways, each tailored to different operational strategies and requirements:

Standard Company Registration via the National Registry (Registro Nacional)

This approach involves registering a legal entity under the National Registry. It grants companies complete control over operations and finances but requires compliance with local tax, labor, and corporate regulations.

Employing your workforce through an Employer of Record (EOR)

An EOR enables businesses to hire employees in Costa Rica without establishing a local legal entity. The EOR assumes responsibility for compliance, employment contracts, and administrative tasks, offering a quick and cost-effective route for workforce expansion.

Aspect	National Registry Registration	Employer of Record (EOR)
Purpose	Establish a formal legal entity with full authority over operations.	Hire employees in Costa Rica without the need for entity registration.
Control	Provides full control over decision-making, finances, and management.	Allows companies to oversee team operations while delegating compliance to the EOR.
Compliance	Requires independent adherence to Costa Rica’s tax laws, labor regulations, and governance standards.	Compliance with labor laws and tax obligations is managed entirely by the EOR.
Setup Time	Time-intensive, involving extensive documentation and procedural approvals.	Rapid deployment, enables businesses to start operations almost immediately.
Cost	Higher initial outlays for registration, ongoing legal obligations, and operational expenses.	Fixed, predictable fees cover compliance, payroll, and administrative support.
Scalability	Best suited for companies planning long-term investments and large-scale operations.	A flexible solution for businesses testing new markets or scaling rapidly without heavy infrastructure investment.

Registering through the National Registry is ideal for businesses seeking full operational control in Costa Rica. Alternatively, an Employer of Record (EOR) provides a quicker, more flexible solution for companies focused on rapid market entry and workforce expansion without the hassle of setting up a legal entity.

In the next section, we’ll explore how partnering with an EOR simplifies onboarding and compliance for businesses entering the Costa Rican market.

How an EOR simplifies Costa Rica company registration

An Employer of Record (EOR) simplifies market entry in Costa Rica by managing compliance and workforce logistics, streamlining your operational setup.

Here’s how partnering with an EOR transforms your market entry:

1. Avoid the time-consuming process of forming a legal entity. An EOR serves as the official employer, enabling your business to start operating immediately.
2. Transfer administrative responsibilities, such as payroll processing, tax compliance, and employment documentation, to the EOR, freeing you to focus on strategic objectives.
3. Stay aligned with Costa Rica’s labor and tax regulations, with the EOR ensuring all compliance requirements are met and mitigating potential risks.
4. Eliminate the high costs of entity registration and ongoing operations, allowing your resources to be directed toward growth initiatives.
5. Scale your workforce efficiently to meet market demands without committing to long-term infrastructure investments.
6. Access Costa Rica’s skilled talent pool without dealing with local hiring complexities or geographic constraints.
7. Offer competitive, locally compliant benefits packages, with the EOR managing all administrative and regulatory aspects.
8. Rely on the EOR to navigate Costa Rica’s legal and regulatory landscape, giving you the confidence and security needed to expand successfully.

Partnering with an EOR provides an agile, cost-effective approach to entering the Costa Rican market. By managing the operational intricacies, an EOR enables you to focus on driving your business forward with confidence and efficiency.

Next, we’ll walk through the step-by-step process for registering a company in Costa Rica, ensuring a clear and compliant setup.

A step-by-step guide to registering a company in Costa Rica

Entering Costa Rica’s market is easier with a clear roadmap. We’ve outlined the key steps to help you navigate regulations, ensure compliance, and set up smoothly for success.

Step 1: Choose your business structure

Setting up a business in Costa Rica involves extensive paperwork and administrative tasks. Partnering with an Employer of Record (EOR) eliminates these complexities. The EOR manages compliance, payroll, and legal requirements, allowing you to bypass entity registration and focus on growing your business.

For businesses that prefer to establish their own entity, choosing the right structure is essential to align with tax obligations, operational flexibility, and long-term goals.

• Sociedad Anónima (SA): A limited liability company designed for larger enterprises, ideal for raising capital.
• Sociedad de Responsabilidad Limitada (SRL): A streamlined structure, popular among small and medium-sized businesses.
• Branch Office: A practical choice for foreign companies seeking a local presence without forming a separate legal entity.

Each path offers unique advantages— you should select the one that best supports your business objectives.

Step 2: Reserve a company name

Choose a unique company name that complies with the National Registry (Registro Nacional) guidelines. Use their online portal to verify name availability and secure approval.

Step 3: Prepare and file the required documentation

Once your business entity and name are finalized, prepare the necessary paperwork for submission.

Typical documentation includes:

• Articles of Incorporation and Company Bylaws
• Identification documents for directors and shareholders
• Proof of registered office address in Costa Rica
• Taxpayer Identification Number (TIN)
• Submit your application through the National Registry’s online system or via authorized legal representatives.

Step 4: Open a corporate bank account

A local bank account is required for managing business transactions, paying taxes, and fulfilling payroll obligations.

Documents typically needed include:

• Proof of company registration
• Articles of Incorporation
• Identification of authorized signatories
• Proof of registered office address

Managing payroll and compliance in Costa Rica can be complex, especially when setting up financial infrastructure. An Employer of Record (EOR) streamlines these processes, allowing your business to operate smoothly without the need for a corporate bank account.

Here’s how an EOR simplifies payroll operations:

• Seamlessly pays your team in Costa Rican colón (CRC) or other currencies.
• Ensures compliance with tax regulations, including social security and corporate income tax.
• Handles global payroll and administrative tasks.

By partnering with an EOR, you can focus on growth while leaving payroll and compliance to the experts.

Step 5: Register for tax obligations

Compliance with Costa Rican tax laws is essential for maintaining smooth operations.

Key registrations include:

• Corporate Income Tax: All registered businesses must file annually.
• Value Added Tax (VAT): Applicable if your business meets the taxable turnover threshold.
• Social Security Contributions: Necessary for businesses hiring local employees.

By following these steps, you can establish operations in Costa Rica efficiently and compliantly.

Next, we’ll explore the costs involved in registering a company in Costa Rica to help you budget effectively.

The real cost of registering a business in Costa Rica

For businesses considering establishing a presence in Costa Rica, understanding the associated costs is essential for effective planning. Here’s a detailed breakdown of typical expenses:

1. Registration costs

• National Registry filing fees: The National Registry (Registro Nacional) charges approximately CRC 50,000 to CRC 100,000, depending on the business type.
• Legal and documentation fees: Drafting Articles of Incorporation and other legal documents may cost between CRC 100,000 and CRC 200,000.
• Name registration fee: Securing a unique business name costs approximately CRC 20,000.
• Stamp duty: Expect to pay CRC 30,000 to CRC 50,000 for official documentation and government approvals.

2. Annual maintenance costs

• Accounting and auditing services: Fees start at CRC 150,000 per year, depending on the business’s size and activities.
• Tax filings: Professional assistance for filing corporate taxes and VAT typically ranges from CRC 100,000 to CRC 200,000 annually.
• Registered office renewal: Maintaining a registered office address may cost around CRC 50,000 per year.

3. Additional considerations

• Banking services: Opening a corporate bank account often involves initial setup fees that vary by institution.
• Compliance costs: Adhering to Costa Rica’s labor and tax regulations may require specialized support, adding to operational expenses.

An Employer of Record (EOR) significantly cuts setup costs by consolidating payroll, tax compliance, and admin into a single, predictable fee. 

Up next, we’ll compare the costs and benefits of traditional entity registration with the streamlined solutions offered by an EOR.

Cost comparison: standard registration vs. EOR

When entering Costa Rica’s market, businesses typically choose between two options: traditional company registration or partnering with an Employer of Record (EOR). Here’s a cost comparison:

Traditional company registration involves a significant upfront investment and ongoing administrative responsibilities.

On the other hand, an Employer of Record (EOR) offers a cost-effective and flexible solution for businesses looking to enter the market quickly or scale without the complexities of setting up an entity.

Next, we’ll explore how partnering with an EOR accelerates your entry into Costa Rica while reducing operational burdens.

Simplify your Costa Rican expansion with Multiplier

Expanding into Costa Rica is a strategic move, and with Multiplier, you have a reliable partner to simplify the process and manage the complexities with precision.

With Multiplier you can:

1. Hire in Costa Rica with ease:
   Tap into the Costa Rican talent pool and onboard employees with compliant, country-specific contracts in minutes. With Multiplier, you can reduce risks through contracts tailored to local labor laws, ensuring every hire meets compliance standards.
2. Pay teams effortlessly:
   Process payroll in local currencies with real-time accuracy while staying fully compliant with tax regulations. Multiplier’s automated payroll system ensures precision and timely payouts, simplifying cross-border payments.
3. Streamline HR operations:
   Manage onboarding, time off, expenses, and employee data seamlessly with Multiplier’s all-in-one HR platform. Businesses can streamline operations and reduce administrative overhead while maintaining full visibility and control over their global workforce.
4. Stay compliant everywhere:
   Navigate labor laws confidently with the support of Multiplier’s 100+ in-house legal and payroll experts. From contracts to audits, Multiplier ensures your operations are aligned with local regulations and audit-ready.
5. Offer competitive benefits:
   Attract and retain top talent with benefits customized to meet local market standards. Multiplier handles all administrative details, allowing you to provide localized, competitive benefits without the extra hassle.
6. Access reliable support:
   Leverage GDPR-compliant systems, SOC 2-certified security, and 24/5 dedicated assistance from Multiplier’s experts. Whether it’s payroll queries or compliance updates, Multiplier ensures your team is always supported.

Planning an expansion can be both exciting and overwhelming for business leaders. Multiplier helps you get it right by delivering speed, eliminating costly risks, and fast-tracking your success.

Multiplier ensures your global workforce expansion is efficient and stress-free by managing the intricate details of onboarding, compliance, and operations, so you can prioritize other critical tasks like market strategy, building customer relationships, and driving innovation in your core business.

Book a Demo today and see how Multiplier’s EOR services can simplify your expansion into Costa Rica.