Frequently Asked Questions
What is an IBC?
An International Business Corporation or "IBC" is a corporation that is formed in an offshore tax haven and is typically authorized to do business anywhere in the world except its home country.
An IBC is completely private. An IBC is TAX EXEMPT on all income earned worldwide.
An IBC DOES NOT file an Annual Return.
An IBC's Corporate Records may be kept anywhere.
An IBC's Annual Meetings may be held anywhere in the world.
An IBC's Board of Directors Meetings may be held anywhere in the world.
An IBC's Shareholders remain Confidential using Bearer Shares
The same person may act as the Shareholder, Board of Directors, President, and Agent or as any other Officer within the Company. Thus, the founder may appoint Officers and Directors for the IBC, but only the Founder will know their identities.
What can I outsource? What are the advantages of going offshore?
Just about everybody: from entrepreneurs in the SOHO (small office or home office) segment to small and medium enterprises (SME), to large businesses and empires with diversified interests and varied business processes. Every business benefits hugely through outsourcing because technology is changing so fast, it has to be leveraged and used to the maximum to deliver competitive advantage to a company.
What are the risks in going offshore?
There are many risks in outsourcing offshore but it is good to know first what it can provide. Surveys and studies have proven that more than 90% of Fortune 500 companies outsource some part of their operations. In the face of such clear indicators, why would some organizations hesitate to outsource? The answer could lie in the bad experiences with previous outsourcing attempts. Risks are always around in business. It is justly a matter of managing it intelligently and producing right profits for the investment.
How do I manage an offshore business?
Many issues need to be addressed before choosing an outsourcing partner. Moreover, once the developer or service provider is selected, it is not enough to just sit on one's heels and assume that the outsourced projects would just work fine. Understanding outsourcing relationships is primary to the success of a project. Constant communication with the outsourcing partner is the best way in order to have 100% success for your projects.
How do I ensure that I am dealing with a service provider who can manage my project requirements effectively?
Here are a few tips on how to evaluate your development partner/service provider. A few things that you need to watch out for are requirements document, a development methodology, clear and excellent communication channels and the ability to understand and think ahead of a business model. A service provider offering programmers on Full Time Engagement (contract basis) is also a best bet.
Here are few advantages of going offshore: Privacy, Asset Protection, Taxation, Estate Planning, Asset
Diversification, and Access to Investments.
Will Costa Rica be a good business venture?
Yes, as stated above, it is in Costa Rica that you can find the best solution for all types of business ventures. It is the best place to put up your business and investments because of low taxation combined with an highly competitive labor force.
What can the Law Office of Meléndez and Bonilla provide me?
The firm prides itself in its business consulting expertise which encompasses a wide spectrum of consulting services. Assignments undertaken by the department include the preparation of feasibility studies and business plans, the conduct of company valuations and the definition and implementation of Business Processes. The department also deals and offers advice on a variety of issues such as direct foreign investment, business acquisitions, financing proposals and other services.
What are the advantages of taking Law Office of Meléndez and Bonilla as resource persons?
This question can be divided into three major services that we provide:
All commercial matters and the areas of legislation that relate to your company: Labor, Administrative rights, Registrar, Tributary, and Traffic; also, Notary Services for the legalization of any legal instrument, consulting for legal actions and contracts, the emission of certifications, title searches and the inscription steps to register property and titles are also available.
Business laws, rules, and regulations
Since this is our specialty, we offer legal advice in all areas that concern or affect your company, and all aspects of the law that involve commercial activity:
The formation of companies, private and public
Power of attorney, general and specific
Certification of company powers (Personerías)
Trade marks and commercial names
Public notary documents (Escrituras)
Leases and rent contracts
Loans and mortgages
Operating permission for affiliated companies or foreign branches
Collections by legal process
Study and correction of contracts
Preparation and professional formulation of internal work regulations
Demands or defense of a labor demand
Workman Benefits and Labor Rights
Administrative recruiting (within the country)
Imports and exports
Motor vehicle license plates (all of the laws that relate to vehicles)
Immigration and Residency Services
The first step we offer with our services is to obtain immigration permissions for all of the investors and/or foreign the company may need.
We also offer legal representation and services, in case your company may become involved in penal matters beyond its control. Swindle, robbery, theft, fraudulent administration, undue retention, labor, and other problems of this type are where you would then require legal representation.
What are the advantages that Costa Rica can offer specially regarding with taxation of foreign employees?
Foreign employees working in Costa Rica are taxed at normal rates whether resident or non-resident. There are no special arrangements for expatriate workers; indeed they and their employers pay full social security contributions although they can receive little benefit from it.
How much is the cost of the labor?
The cost of labor is very minimal as an implication of low taxes and again competitive individuals which have excelled world’s standards makes Costa Rica number one in offshore businesses. The total cost of labor depends on the way you intelligently manage your resources. There are excellent individuals who are willing to work to starting companies in low compensation but looking forward for long-term success.
Am I subjected to privacy laws?
Yes, only to the Central Banks of Costa Rica where strict confidentiality is legally protected. You are rest assured that all your companies’ information bank statements and profiles are legally protected and will not be disclosed for public or private use.
How can I work in Costa Rica? Is there a need for a work permit?
No one can work in Costa Rica without first obtaining a work permit, may take between 30 days and 60 days to be approved. A work permit cannot be applied for until a residence permit has been granted. Work permits are valid for one year and require annual renewal.
A company which has more than 30 employees can apply for a general work permit enabling it to bring foreign technicians and executives to work in the jurisdiction without the need to make an individual application for each person it wishes to engage .Such a permit is valid for one year and must also be renewed annually.
The labor code limits the percentage of foreigners working in each corporation, specifying that at least 90% must be indigenous and that 85% of salaries paid by a company must go to Costa Rican nationals. Moreover foreigners cannot occupy jobs for which Costa Rica nationals are available unless special permission is granted.
Please Contact Us for more information on how a Costa Rican Corporation can benefit your business and how to establish your own.
Types Of Corporation
- Limited Liability Corporation
- Limited Partnership
- General Partnership
- Sole Proprietorship
- Foundation or Trust
- Stock Corporation
- Shelf Corporations
Why Choose Costa Rica?
Costa Rica has many distinct characteristics and advantages that International Business Corporations (IBC's) can make the most of. Although Costa Rica is not classified as an offshore financial hub in the traditional sense, its favorable tax regime implies that it could have been classified as a tax haven some decades ago.
However, the Costa Rican government has only recently realized the potential of being a tax haven and has started to actively legislate and promote this sector of economic activity. The low taxation available to businesses of Costa Rica makes it an attractive offshore financial investment center for most businesses across the globe.
A number of well known businesses have already set up shop in Costa Rica but the economy is still at infancy.