Many aspects of functioning in Costa Rica require that a person or entity be qualified to obtain services or do business in Costa Rica.

As a simple example; to obtain a cell phone line and number in Costa Rica the applicant must be: a) a Citizen, b) a Resident or c) a Costa Rica Corporation.

If you are not a Costa Rica citizen or resident, setting-up a Costa Rica corporation with yourself as the principle is the least expensive way to get started in many aspects of Costa Rica living.  For the one-time reasonable cost of approximately $450.00 you can have your corporation ready and waiting for your Costa Rica arrival (lead times will vary based on the time it takes for the corporation to get registered, but 4 weeks will usually allow everything to be completed).

The two most common questions regarding Costa Rica corporations is 'what exactly should I be using my corporation for' and 'what are the advantages and disadvantages of using a corporation'?!  According to Costa Rica Attorney Andre Wells, a corporation should be used when needed but not as a single umbrella for all aspects of making purchases and conducting business in Costa Rica. 

As a (former) non-resident, my corporation could conduct business if I didn't qualify or if I desire to put something in the name of my corporation instead of my own personal name.  In the case of obtaining a cell phone line, I used my corporation due to the fact that it was required and there is little risk that any legal matter would come from my use of the cell phone.  When I purchase property, I will also use a corporation so that I can be one-removed from the property - allowing me to sell to any future buyer my corporation which includes the property (resulting in some tax and legal advantages).

My Costa Rica corporation's Cedula (identification)

As another example, there are no residency requirements when purchasing an automobile in Costa Rica.  Lic. Wells advises that when buying a car it should either be purchased by the person or under a separate corporation dedicated to this one function.  The possibility of a legal matter arising from the driving of the car is too great a risk for lumping other items under this same corporation where everything could end-up being tied-up for a minor traffic accident.

Along this same line of thinking, if a corporation is used to actually conduct business (ie: import business, real estate sales), do not use the same corporation to purchase property due to the fact that if any legal matter affects one part of the corporation - this same legal matter will tie-up everything else under the same corporation (ie: a tax issue regarding your import business may tie-up property you also put in the name of the business).

As for the disadvantages of owning a Costa Rica corporation, I can think of none other than the cost if you never use it.  But for my money, I'd rather have one on hand than have to scramble and pay more money should I require one in a hurry.

Bottom Line:  Obtaining my Costa Rica corporation was quick, easy and worked as advertised when moving forward with the purchase of my first cell phone number as a non-resident.  For more information regarding this and other legal matters contact bilingual Costa Rica Attorney (Abogado/Licensia) Andre Wells at 011-506-2273-2338 or awells@racsa.co.cr.