How to register and manage a local legal entity?
First and foremost, it must be stated that there is NO crypto license in Costa Rica. You cannot obtain a license that is specific to crypto-related dealings, but you can establish a new business and run crypto trading (or any other activity) through a company. The steps for registering a legal entity in this country are basically as follows:
- Select a suitable structure for your business. There is Sociedad Anonima which works as a corporate entity and is in practice rather common. It is similar to what a corporation-style structure is in the US. There is also Sociedad de Responsabilidad Limitada, which is the local version of LLC.
- Determine what you want to name your business. What’s interesting is that your business’ actual name does not have to be the same as its legal name. This creates an interesting situation if you intend to diversify your branding opportunities.
- Obtain all licenses that you will need. There are a handful of licenses and permits that you need to have. The big and the small ones can all be obtained in a rather quick fashion if you have someone on your team who has enough expertise within this jurisdiction.
How to open a local office (no physical office required) with a zip code?
There is a requirement that all businesses must have a registered address. It is called domicilio fiscal. The process of opening a local office with a legit zip code is something that is included in every package of company creation in Costa Rica. It is one of the most pivotal steps, actually.
How to open a corporate bank account in Costa Rica?
Before you get your business ID, which is called cedula juridica, you will need a corporate bank account. There are certain limitations in place, but most foreign citizens will be able to open one based on their status. The process requires some form of identification for opening the account, but more importantly, you will need to have permanent residency to open a bank account in most banks. Of course, requirements differ from case to case, but acquiring a permanent residency is something that guarantees you access to most bank accounts in the country.
How to register company information in Costa Rica registers?
In order to incorporate a company, you will have to file a company incorporation charter. It is filled in the merchant section of Costa Rica’s National Registry. Thanks to this move, a company now has permission to operate on Costa Rican soil on a full-fledged level. After successful incorporation, there will be one register that you will have to deal with – Caja Costarricense de Seguro Social (Costa Rican Social Security Fund). You will have to place your company in its registry as an employer.
How to prepare information about company officials?
Supposing the information about the key staff is in a different language, you will have to translate it into Spanish. You cannot hire any translator, it has to be a legally authorized local translator with experience in the translation of key company documentation. You will be provided with an extensive list of documentation that you will have to submit and have translated by a translator. A good translator will give you a recommendation on how to proceed and can answer your questions as you progress.
What documents are required to confirm the official origin of funds?
Costa Rica pays a great deal of attention to where the money comes from. Investors and entrepreneurs are expected to ensure that they use real money obtained through legal means. Luckily, it is not that hard to confirm that your funds come from a legitimate source. You will have to prove that with states from a bank, tax statements, government reports, and even bills. It is best to get your accountant involved, but if you do not have someone who can help, you can hire a company that specializes in creating companies in Costa Rica. That way, you can skip all the hassle not on just this, but on every step.
How to apply to the Costa Rica Tax Service for a permit?
The process is fairly straightforward if you know what you are doing. You will have to interact with the Ministerio de Hacienda. It’s a very reputable governing body, but they won’t have a representative that will see you through the entire process. You are expected to understand all the intricacies right away and have a clear idea of how to resolve any issues. The Ministerio de Hacienda does navigate all the possible scenarios in an open and objective way, though. During the initial stages, they will only ask for your business’ legal name and business ID number (the above-mentioned cedula juridica).
How to pay state fees?
There are several taxes that you will have to pay, including:
- Corporate tax. The bad news is that there is a fixed business fee that you will have to pay every year. Its size depends on gross yearly income. The business tax rate can range between 10% and 30% depending on several factors.
- VAT. There are some businesses that are exempt from VAT, but it all varies from case to case, so expect that you will probably have to pay something. Costa Rica has a fixed rate of 13%.
As a legal crypto firm, you will have to collect the VAT and give money every month to the Ministerio de Hacienda. You will also be obliged to file taxes every month. It makes sense to hire an account if you want it done in a timely manner. It is unlikely to do so in the most cost-efficient way.
How long does it take to get a license?
It can vary greatly based on a plethora of different factors. The first distinction to make is that it depends on the type of business. Also, it depends on whether or not you decided to attract outside help. With no outside help, it can take almost 6 months. In some cases, even more. If you decide to hire a company that helps with company creation, you will be looking at 1-3 months before you can start working.
