Costa Rica Offshore Corporation, Is it worth it?
Costa Rica is a small country located at a strategic place in America. It has many key features and pros that could offer International Businesses a practical edge over its competitors. Costa Rica has had tax friendly policies for many years, but it is only fairly recently that the government has realized the potential of and profitability of this policy and have taken bold steps to promote it in a bid to make Costa Rica a developed country.
Costa Rica Corporations, What is it?
The world is now a global. Almost every country in the world are now borderless economies; this means that businesses are competing against each other even if they are operating in separate corners of the world. While marketing and promotion efforts do play an important role in the survival and flourishment of a business, It is the cost cutting that matters and by setting your business in Costa Rica not only will you enjoy the safest environment but also you will have a comparative advantage over others since you will be producing at a much cheaper price and get a good markup.
The Criteria for Opening an Offshore company in Costa Rica:
Well, to be honest, there isn’t any special criteria, and almost anyone with capital can set up an offshore company. However, you will have to prove your legitimacy before the Costa Rican government to avail the benefits of the business-friendly conditions of Costa Rica. You can do that by simply telling the name of your company, state its objectives, mention the names of the employees especially the board of directors. In addition to that, it is also important that your company has a legally registered office and a corporate secretary as well. Lastly, you should provide all the legitimate documents that prove the validity of the company.
One thing that is unique and good about the Costa Rican tax rules and regulations is that there aren’t discriminatory tax rates, and the tax is equal for both offshore and on-shore companies provided the income they generate is from and originating within the boundaries of Costa Rica. However, Business that operate in EPZ’s are subject to less tax or given tax privileges as these are Free Zones. Another benefit, especially for new forming companies is that if they are an infant or have started their operations in the previous 8 to 12 years, they are exempted from the tax that is applied to profits generated. This is particularly encouraging, and lots of new business have been formed as a result.
Overall, I would conclude by forming a Costa Rica Offshore Corporation would be extremely useful and beneficial for your business. There would be some risk and uncertainty surrounding your business and adapting to a new culture and environment will always be a risky prospect but in business the greater the risk, the higher the reward. However, the favorable tax laws and a skilled labor force should do the trick.
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