Liaison Office in Costa Rica – Representative Office Guide

Opening a Costa Rican liaison/ representative office is possible under the form of a branch with limited activities is a good way to test the local market before expanding a foreign enterprise. Below, our company formation officers explain how to create such an entity, what its uses are, and how we can help you through the entire procedure.

Quick Facts
Applicable legislation	Costa Rica Company Law
Status	The liaison office is not a self-established legal entity.
Uses of a liaison office	– promotion, – marketing, – provision of technical services, etc.
Restrictions of a representative office (if any)	Yes, a Costa Rican representative office cannot undertake any commercial activities.
Minimum share capital (YES/NO)	Not required
Local representative required (YES/NO)	Yes, a local agent, including a corporate one, must be appointed.
Documents to be filed by parent company	– parent company’s information, – proof of a local address, – details of the appointed agent
Local address requirement (YES/NO)	Yes, a registered address is required for opening a liaison office in Costa Rica.
Authority to be enrolled with	Companies Register
Liability of the parent company	The parent business is liable for all liaison office’s obligations.
Taxation of a liaison office in Costa Rica	A representative office is not subject to taxes in Costa Rica.
Possibility of hiring local staff (YES/NO)	Yes
Travel requirements for setting up a representative office (YES/NO)	No, there is no need to travel to Costa Rica to set up a liaison office.
Advantages of a liaison office	– simple and quick registration, – low maintenance costs, – possibility to hire a small number of employees, etc.
Support in opening a representative office	Yes, our Costa Rican company formation agents can help with the creation of a representative office.

Who can establish a liaison office in Costa Rica?

The representative office is available for foreign companies only. They usually choose it before setting up a commercial enterprise in Costa Rica.

How do I register a liaison office in Costa Rica?

The procedure for incorporating a representative office is similar to that of opening a new company in Costa Rica. It implies:

drafting a registration application and a few other documents;
securing a local address (a small office will suffice);
appointing a local representative;
filing the papers with the National Register through a public notary.

What are the documents required to open a representative office in Costa Rica?

a certified copy of the foreign company’s statutory documents, which must be translated into Spanish and apostilled;
the resolution through which the parent company approved the creation of the Costa Rican liaison office;
proof of the local address in Costa Rica;
the details of the local representative;
the power of attorney for the local representative;
the Beneficial Owner declaration, which must be filed with the Central Bank.

NOTE: A valid email address is also required for the liaison office.

What are the main characteristics of a Costa Rican representative office?

it has no separate legal personality, so the parent company is liable for its obligations;
the activities it can engage in are related to: marketing, market testing, offering support, and providing information about the foreign company;
it depends on the parent company from every point of view, meaning it cannot make decisions or enter into contracts;
it cannot sell goods or products; however, it can present them to those interested in them;
it does not require a trading license, as it will not complete commercial operations.

What are the activities a foreign company can undertake through a representative office in Costa Rica?

Any of the following:

carrying out marketing activities;
attending events and fairs to the operations or services of the foreign enterprise completing marketing activities;
completing feasibility studies and issuing reports for the parent company.

Is it mandatory to appoint a local representative for a representative office in Costa Rica?

Yes. The agent will act as a contact person between the liaison office and the authorities.

Can I hire employees when setting up a Costa Rican representative?

Yes, you can. From this point of view, registration for social security and work accidents is required.

NOTE: In case of employee relocation, you must follow a specific procedure.

Is tax registration required when opening a liaison office in Costa Rica?

Yes. Even if it does not make profits, the parent company must still register its local presence through a liaison office with the Costa Rican tax authorities.

Is it necessary for a liaison office to have a bank account in Costa Rica?

No, however, the parent company can open a local bank account for its representative office for the payment of salaries, lease/rent, and local taxes.

Also, opening a liaison office does not imply securing a minimum share capital for the Costa Rican entity. Here is also our video on this subject:

Can a Costa Rican representative office enter into contracts on behalf of the parent company?

No, it cannot enter into commercial agreements. However, it can sign administrative contracts for employment and office lease purposes on behalf of the parent company.

How long does it take to open a representative office in Costa Rica?

The procedure takes about a month.

What are the advantages of a Costa Rican liaison office?

While it may not seem very useful, creating a representative office in Costa Rica has certain benefits. One of the most important is that it can run on a low-cost base, it does not need large premises or a great number of employees.

All it needs is a local representative to act on behalf of the foreign company in relation with the authorities and parties interested in the parent company’s goods or services.

If you decide to set up a representative office in Costa Rica and need assistance, contact us! Our agents will help you.