 Costa
Rica remains one of the safest and most attractive countries
for foreign investment in Latin America. The Costa Rican government,
its ministries and financial institutions maintain a decidedly
pro-U.S. and continental stance in regard to financial security
and tax laws. The stated aim is to entice primarily high-tech
corporations to take advantage of Central America's most educated,
computer literate and disciplined workforce, along with the
modern production infrastructure the country is currently
creating. The economy is being transformed from its long-time
dependence on coffee, bananas and cattle raising to one centered
on microprocessor production and high-tech telecommunications
services.
This investment-friendly climate and government policy of
making Costa Rica "the Silicon Valley of Latin America"
has enticed commercial leaders such as Acer, Microsoft, GE,
Abbot Laboratories, Continental Airways and Intel Corporation
to make sizable investments here, both financially and physically,
with major production and distribution facilities. Western
Union has chosen Costa Rica to host its Latin American regional
operations center. In 1998, for the first time ever, Costa
Rica is poised to earn more from high technology exports than
from coffee or bananas or even its lucrative, thriving tourism
industry.
The World Bank has given Costa Rica an excellent bill of
overall political and economic health. At its annual conference
in El Salvador this year, the bank lauded the country as possessing
"one of the most stable and robust" democracies
in Latin America. It went on to praise the Costa Rica's "healthy
economic growth rate" and "some of the best social
indicators" on the continent.
Costa Rica is one of the most vocal supporters of continental
free trade, and already has its own agreement with Mexico
and other countries of the region. Costa Rica's numerous free
trade zones and tax holiday opportunities are extremely enticing.
They offer benefits such as exemption from import duties on
raw materials, capital goods, parts and components; unrestricted
profit repatriation; tax exemption on profits for eight years
and a 50 percent exemption for the following four years.
A study done recently for the Ministry of Foreign Trade (COMEX)
projects that by the year 2005, Costa Rica's export earnings
will amount to $15.7-billion, about four times the current
figure. Intel will be leading the way; its exports, from the
three manufacturing facilities the processing giant is building
here, are expected to reach an annual $3.5-billion by the
year 2001.
High-tech companies will spur the export boom, while traditional
exports, such as coffee and bananas, will fall in percentages
of overall figures, but in terms of revenue, will continue
to grow.
 Costa
Rica is building a competitive advantage for itself and the
many high-tech companies who have chosen or are pondering
the option to operate here. It is a country at a turning point
in integrating itself into the modern world economy. Those
doing business here will have the inside track.
Among the more knowledgeable and helpful sources of information
on investing and doing business in Costa Rica is the Costa
Rican-American Chamber of Commerce (AMCHAM), composed over
1,500 representatives from more than 330 multinational and
local companies.
CINDE, the Costa Rica Investment and Development Board, has
been officially commissioned by the government of Costa Rica
to be the main promoter and advisor to foreign investors.
CINDE is a private, non-profit organization that provides
complete and updated information on the economy and the business
environment in Costa Rica, and helps in the initial contact
with potential investors. It has an office in New York to
provide tailor-made services. PROCOMER, the Foreign Trade
Promotion Institute can help exporters understand relevant
legislation, acquire export permits, seize the advantages
of market opportunities and chart their way through related
fields of endeavor. CADEXCO, the Costa Rican Exporters Chamber,
provides information to entrepreneurs, private and public
institutions on export procedures and requirements; trade
barriers and how to overcome them; how to sell products abroad;
information on export credit lines and export contracts, international
prices, etc.
If you would like to establish a foreign corporation in Costa
Rica below are a few facts to consider.
Costa Rica is located in the centre of the American Continent
and lies just above Panama. It has a total population of approximately
3,000,000. The capital and financial centre is San Jose.
Costa Rica is one of the most discreet centers in the world
and enjoys economic and political stability making it a popular
location.
The legal system is based on the Spanish Civil Law.
The Colone, but the US Dollar is used freely.
Spanish is the official Language of Costa Rica.
Disclosure of the Beneficial Owner
Although it is required to disclose details of the Beneficial
Owner to the Government Authority, Blank Endorsed Shares allow
for total privacy.
Provided that the company activities are carried on outside
of Costa Rica, the company will not be subject to any income
taxes therein.
None.
None.
The Registrar of Companies reserves the right to refuse any
name which is identical or strikingly similar to an existing
company or, in his opinion, inappropriate or undesirable.
Names must end with S.A., to denote limited liability.
A Costa Rican Company is not permitted to conduct or carry
out Banking; Insurance; Fund Management; Investment or Asset
Management; Trusteeship; or any associated activity.
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