Tuesday 22 June 2021

Registering a Business in Costa Rica Can Be a Headache

Thursday 01 November 2012 | QBusiness

Although Costa Rica improved twelve positions in the Doing Business Index by the World Bank, the country fell three positions to 128 when it comes to starting a business. Despite the fact that the Government has implemented improvements, the drop is due to paperwork being held up and it becomes a headache to open a business.

According to the World Bank report, it takes an average of 53 days to register a business in Latin America.  In total, the entrepreneur must go through 12 procedures and it has an average cost of $1,379 (695,000 colones). Cost is recorded as a percentage of income per capita of the economy. This includes official fees, fees for legal services, and fees for purchasing and legalizing corporate books.

- Advertisement -

The Government itself recognizes that the processes for starting a business are complex because there is no proper coordination and communication between participating institutions. This situation causes delays of procedures, difficult and duplicative processes, deteriorating services, negative impact on levels of competitiveness and high costs for the mobilization and processing of paperwork.

This situation reflects the need for a solution that allows improvement in processes, standardization and institutional integration and rethinking of the structure of procedures, in the specific case of procedures to register a new business entity in the public registry.

One alternative to improve the registration of a business is the project “Create Company”. The project aims to facilitate the registration of a company from registration to its operation, reducing the process by means of a digital window. According to the Minister of Economy, Mayi Antillon, the platform for next year will allow the country to improve.

During its first phase which the project implemented in February, looked at the consultation processes of pending applications for registration of a new corporation in the National Register and the authorization for the legalization of digital books (legal and accounting).

- Advertisement -

In the mechanism that the government raises to register a firm through the systematization should be considered:

National Register: handles the registration of new corporations.

National Notary Address: valid if the notary is active.

General Direction of Taxation: generates the authorization number to obtain the books (legal and accounting).

National Printing: is responsible for issuing the edict, in the cases that applied for registration of the new corporation.

Supreme Court elections: verifies if an identity card is valid and current.

- Advertisement -

Notaries: are responsible for performing the processing of applications for registration of new corporations.

Meanwhile, the participation of institutions is as follows:

Local governments: are responsible for issuing land use and business license.

National Registry:  Provides copy of registration and the property ownership certificate that will be used for the new business.

Ministry of Health: Health issues the operating license.

Environmental Technical Secretariat: analyzes and approves environmental impact assessments.

National Animal Health Service: provides services for the evaluation of risks to animal health and veterinary public health.

Social Security Fund: Start the application for registration as an employer.

National Insurance Institute (NII): issuing the policy of labor risks.

Directorate General of Taxation: performs registration as a taxpayer.

Source: Costaricanorth.com

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Carlos Alvarado: “Don Rodolfo has my confidence”

QCOSTARICA - President Carlos Alvarado said he has all the confidence...

Week immersed in passage of tropical wave, June Solstice and Veranillo

QCOSTARICA - Today, Monday, June 21, is the day of the...

MOST READ

Companies covered up defective asphalt

QCOSTARICA - The judicial file of the Cochinilla Case, on alleged corruption in road works, exposes how three companies would have covered up the...

Will that be Cash or Sinpe Móvil?

QCOSTARICA - Sinpe Móvil is easy to use. From your phone, you can send money to friends, family and pay for things. Or receive...

Lack of space on Racsa’s hard drive paralyzed immigration consultation at the airport this Monday

RICO's DIGEST - We've all had this happen, your computer's hard drive is full and your computer crashes. But we are not the Radiográfica...

Today’s Vehicle Restriction June 20: only “EVENS” can circulate

Today, Sunday, June 20, only vehicles with "EVEN" ending plates CAN circulate The measure is countrywide and applied between 5:00 am and 9:00 pm, save...

American woman found lifeless in hotel bathroom in Sabana

QCOSTARICA - A sad discovery occurred this Thursday morning in a hotel located in La Sabana, in San José, the lifeless body of a...

Fifth tropical wave precipitation will be heavier in the north of the country

QCOSTARICA - For this Wednesday, the arrival of the fifth tropical wave of the season is expected, thus reinforcing the rainy activity mainly to...

Cynthia Ann Telles named new U.S. Ambassador to Costa Rica

QCOSTARICA - Today, U.S. President Joe Biden announced his nomination of Dr. Cynthia Ann Telles as United States ambassador to Costa Rica. According to the...

OIJ investigation into road works corruption leads to inquiries in Panama

QCOSTARICA - The prestige of the company of some of the richest men in Costa Rica hangs by a thread. For many, the MECO...

Tourism sector depends on political will for recovery

QCOSTARICA - The future of tourism operators in Costa Rica depends on the political will to approve a package of bills that favors the...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.