Costa Rica is located in Central America between Panama and Nicaragua. Dubbed “the Switzerland of the Americas” Costa Rica offers many advantages and favorable tax conditions. The high degree of privacy is one of the biggest advantages Costa Rica holds however in March 2012 Costa Rica signed the Convention on Mutual Assistance in Tax Matters with the Organisation for Economic Co-operation and Development (OECD). This could in effect change the privacy provisions Costa Rica is famous for however the required legislation has not been passed into Law at the current time.
Although the official language of Costa Rica is Spanish English is also widely spoken. Company names can be recorded in either Spanish or English.
Costa Rica’s economy was originally agriculturally based however recent diversification has taken place and Costa Rica has become a member of the World Trade Organisation in addition to developing numerous incentives to promote business and trade.
The most common form of company used in Costa Rica is the “Sociedad Anonima” as shareholders are not liable for the actions of the company. The main advantages of the S.A. are listed below:
Key benefits of a Costa Rica S.A:
- A S.A. offers a high degree of privacy and anonymity.
- 4 Members are required for a S.A – President, Secretary, Treasurer & Controller. Board Directors appear on public record.
- Shareholders do not appear on public record.
- Costa Rica is not a member of the Hague Convention therefore if a bank account is planned to be opened outside of Costa Rica then the corporate documents have to be legalized. Legalisation costs depend on the specific countries Consulates rates.
- Timescale of Incorporation – between 20-40 working days.
- An S.A operates a territorial taxation principle; the company only pays taxes according to the income generated in Costa Rica.
- There are no reporting or accounting requirements.
- Costa Rica is not considered an offshore entity and has a number of Free Trade Agreements in place (US, Canada, Mexico, Chile, Dominican Republic and the Caribbean). There are also negotiations underway with China and the EU.
Panama Law 52: Updated legislation for all legal entities
Last month the Government in Panama officially approved Law Number 52; legislation which creates the regulatory framework for the implementation regarding automatically exchanging tax information, in a further attempt to comply with global regulations for tax transparency, and to be fully in line with all supervisory and compliance matters.
Important 2016 reporting deadlines for BVI Financial Institutions
Officials from the British Virgin Islands have come together to clarify various filing deadlines as per the automatic exchange of information systems in a press release.
Thinking of relocating your business to Singapore? Let us help you!
Singapore has quickly become one of the world's most prosperous countries with strong international trading links and per capita GDP equal to that of the leading nations in Western Europe, making it an ideal destination and potential location for Business Owners to relocate and start a new business and lifestyle.
How to register a branch in Cyprus
Overseas companies may register a branch in Cyprus, according to the Companies Law, Chapter 113, regulated by section 347. A branch will not essentially consider as being a new legal entity in Cyprus.
To Brexit or not to Brexit?
To Brexit or not to Brexit - this has been the question of the year for Britain and with the referendum taking place imminently, just two options remain: leave the EU or stay in. Why has this been such a difficult decision to decide upon?
Selecting a Management Information System
A management information system or MIS is used to assist in the analyses and formulation of business strategy, as well as facilitating operational objectives. Selection of an MIS can help increase understanding and control in an organisation and can be scaled to suit the complexity of most modern businesses. If the right MIS is selected and it is implemented correctly it can provide a competitive advantage for the organisations utilising it.
Windows 10 update: having issues with the installation?
By now you have probably about Windows 10, the latest operating system developed by Microsoft.
Accounting support for a Cyprus company located in Russia
When expanding your business overseas, not only do you have to comply with International Financial Reporting Standards (IFRS) and accounting standards, thought must also be given to the specific jurisdictions own rules and regulations.