RE: I’m interested in buying a business in Costa Rica. What would be the first steps?
There can be many advantages to starting or purchasing a business in Costa Rica. First it is a very foreigner friendly country with long established democratic rules policies and procedures, and most important the rules are the same for foreigners as they are for locals.Another point is that often a product or service that is developed and successful in North America is not yet available here. In general most cases, buying or starting a business in Costa Rica is less costly than the North American market.
Now! How to get started?Â PROPER DUE DILLIGENCE!
Carefully review the following information sources when buying a business in Costa Rica:
a. Public Corporate Records â€“ have your corporate law attorney carefully check articles of incorporation, bylaws, type and amount of capital stock, and powers of attorney.
b. Private Corporate Records â€“ Check current stock ownership, and stockholder and any resolutions not on public record.
c. Accounting Records â€“ Have a certified accountant check these records investigate the actual income and expenses, fixed and liquid assets, short-and long-term liabilities and taxes.
d. Tax Obligations â€“ Have certified accountant check these records including yearly income, sales, corporate stamp, property taxes, monthly sales taxes, and travel and hotel lodging taxes, road taxes and commercial license fees, municipal services such.
e. Permits and Licenses (Municipal and National) â€“ Every business needs the health department permit and a municipal business licenses. As well as special permits which may include beers, wines, and liquors; permit for late hours functioning; registration with the Tourism Board for lodging tax, etc.
f. Employment Records â€“ Check written contracts specifying employment and employee particulars with responsibilities and salaries, along with up-to-date social security and workerâ€™s compensation insurance payments, mandatory vacation, Christmas bonus, and severance pays.
g. Property/Real Estate Title â€“ Check for the presence of liens, encumbrances, mortgages, and judicial claims, details such as measurements on the property title should agree with the actual measurements on site.
h. Lease Contracts â€“ Confirm all names on the contract, conditions for use of the property, and the rental payments and potential legal increases, as well as any other terms and conditions. Confirm with a lawyer any terms or special conditions for transfer of names.
Please contact Hauser Consulting if you would like a free consultation.
Info +(506) 6006-0502
Phone +(506) 2201-1484
Fax: +(506) 2224-1302