Easy methods to Set up a Firm in a Free Commerce Zone in Costa Rica?

For many years, Costa Rica has had insurance policies in place aimed toward attracting worldwide enterprise, and to say that these insurance policies have been profitable could be an understatement. One of many methods the Central American nation has attracted worldwide companies massive and small is for a corporation to function in a Free Commerce Zone in Costa Rica. Free Commerce Zones (FTZs) supply a bunch of tax and import responsibility exemptions, making them extremely profitable locations to do enterprise.

What sort of corporations qualify to function in a Free Commerce Zone in Costa Rica? And what forms of tax advantages do they take pleasure in?

Firm in a Free Commerce Zone in Costa Rica: Industries discovered within the nation’s FTZs

How to stablish a company in a free trade zone infographic by Biz Latin Hub
Easy methods to stablish an organization in a Free Commerce Zone in Costa Rica
  • Aerospace engineering
  • Automotive components manufacturing
  • Biotechnology
  • Shopper electronics 
  • Digital elements meeting
  • Machine restore/upkeep
  • Medical gadgets
  • Metallic work
  • Prescription drugs
  • Renewable power
  • Software program growth
  • Telecommunications

There are a complete of 48 FTZs in Costa Rica. Most are large industrial parks on sprawling plots of land which can be positioned close to Costa Rica’s major worldwide airport, one of many nation’s sea ports, or in shut proximity to the capital metropolis San José. FTZs may be operated by each private and non-private entities. 

Merchandise of each description could also be held in FTZs, so if you’re not within the enterprise of the industries listed above, concern not – for corporations that need to be in a Free Commerce Zone in Costa Rica, there could also be a niche-FTZ on the market that cater to your explicit trade.

Moreover, Costa Rica simply handed laws permitting worldwide corporations that work outdoors an FTZ, however within the Greater Metropolitan Area (GMA) around San José can apply to be categorized as a “Free Commerce Zone” firm. Corporations working each outdoors an FTZ and the GMA may additionally apply to obtain FTZ standing, so long as they meet all the requirements

To seek out out if your corporation qualifies for working in an FTZ, it’s greatest to seek the advice of authorized illustration in Costa Rica.

Advantages of working an organization in a Free Commerce Zone in Costa Rica

Costa Rica’s Free Commerce Zone Regime grants beneficiary companies the widest range of benefits presently accessible within the nation.

  • 100% exemption on import duties on uncooked supplies, machine elements and different items
  • Full exemption on company revenue tax
  • 100% revenue tax exemption for an eight-to-10-year interval
  • Tax exemptions on home purchases of products and providers
  • 100% exemption on export taxes, native gross sales tax and VAT
  • No restrictions on capital/revenue repatriation or overseas foreign money administration
  • Expedited on-site customs clearance
  • Risk to promote to exporters inside Costa Rica
  • Et cetera

FTZs are overseen by the export group Procomer, which is a part of the Costa Rican Ministry of Overseas Commerce. Their Free Zone Regime Guide spells out all the rules, rules, minimal necessities and prohibited actions that should be adhered to for a corporation to be in a Free Commerce Zone in Costa Rica. 

SEE ALSO: Enterprise Set-Up in Costa Rica – All You Have to Know

Varieties of corporations permitted to function in a Free Commerce Zone in Costa Rica

  • Buying and selling corporations are permitted, so long as they don’t produce items, however quite merely manipulate, repackage, or redistribute non-traditional merchandise for export. 
  • Corporations that present providers to folks or corporations domiciled in Costa Rica, overseas or to different corporations in an FTZ.
  • FTZ park directors, and/or corporations which can be devoted to the administration of parks and workplace areas, and so forth., for different corporations working in an FTZ.
  • Producers that remodel uncooked materials into completed or semi-finished merchandise.
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Costa Rica exports. Know some financial information of the nation if you’re considering of building an organization in a Free Commerce Zone in Costa Rica.e Zone in Costa Rica

Necessities for corporations in Free Commerce Zones in Costa Rica

  • A minimal funding requirement of between $100,000 USD and $500,000 USD relying on the corporate’s location and sort of financial exercise.
  • Minimal of $10 million USD funding for industrial exercise deemed to be a ‘megaproject,’ whatever the location.
  • Manufacturing corporations require sustaining a minimal of a minimum of 200 workers on the payroll in the beginning of productive operations. Megaprojects should keep a minimum of 100 workers on the payroll.
  • All corporations hold detailed and correct data of the operations of the corporate associated to the products they produce or deal with, as required by Costa Rica’s Ministry of Finance.
  • Cost of month-to-month charge to the Overseas Commerce Company of Costa Rica, beginning at $200 USD and going up, in line with the kind of firm working in an FTZ.
  • Corporations submit an annual report proving that the entity is fulfilling all the foundations and rules outlined within the Free Commerce Zone Regime Information.

Business exercise prohibited from working in Costa Rica’s FTZs

  • Mining extraction
  • Exploration or extraction of hydrocarbons
  • Manufacturing or commercialization of weapons and ammunition containing depleted uranium
  • Corporations which can be devoted to the manufacturing or commercialization of any kind of weapons
  • Corporations which can be devoted to the era {of electrical} power, except the era is for self-consumption
  • Banking, monetary and insurance coverage entities
  • Pure or authorized individuals devoted to offering skilled providers

Biz Latin Hub may also help corporations enter a Free Commerce Zone in Costa Rica

At Biz Latin Hub, we offer built-in market entry and back-office providers all through Latin America and the Caribbean, with workplaces in San José, Costa Rica, in addition to over a dozen different main cities within the area. We even have trusted companions in lots of different markets.

Our unrivalled attain means we’re ideally positioned to help multi-jurisdiction market entries and cross border operations.

In addition to data about corporations coming into a Free Commerce Zone in Costa Rica, our portfolio of providers consists of hiring & PEO accounting & taxation, firm formation, and company authorized providers.

Contact us right now to seek out out extra about how we will help you to find high tech expertise, or in any other case do enterprise in Latin America and the Caribbean.
If this text about corporations coming into a Free Commerce Zone in Costa Rica was of curiosity to you, take a look at the remainder of our protection of the area. Or examine our staff and skilled authors.

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Key providers supplied by Biz Latin Hub: Type an organization in a Free Commerce Zone in Costa Rica