Set Up a Subsidiary in Costa Rica – Steps and Requirements

Below, you can find the main steps for setting up a subsidiary in Costa Rica. You can rely on our Costa Rican company formation agents for support in registering it.

Quick Facts
Applicable legislation (home country/foreign country)	The subsidiary must abide by the Costa Rican Company Law.
Best used for	All types of commercial activities
Minimum share capital (YES/NO)	1 USD no matter the legal form employed
Time frame for the incorporation (approx.)	Between 4 and 5 weeks
Documents to be filed by parent company	– details of the foreign company; – proof of payment of the registration fees; – an impact survey of the subsidiary’s activity on the Costa Rican market
Management (local/foreign)	There is no need to appoint a local manager.
Legal representative required (YES/NO)	Yes, a local agent must be appointed for the Costa Rican subsidiary.
Local bank account (YES/NO)	Yes, it is mandatory to open a bank account with a Costa Rican bank.
Independence from the parent company	The subsidiary is an independent legal entity.
Liability of the parent company	The foreign parent company is free of any liability the subsidiary incurs.
Corporate tax rate	30%
Annual accounts filing requirements	Financial information is reported to the tax administration with the income tax return; audited statements are required only in specific cases.
Possibility of hiring local staff (YES/NO)	Yes, it is advised for subsidiaries to use local workforce.
Travel requirements for incorporating branch/subsidiary (YES/NO)	No, there are no travel requirements imposed when opening a subsidiary company in Costa Rica.
Double tax treaty access (YES/NO)	Yes, Costa Rica has a few double tax agreements currently.

Who can set up a subsidiary in Costa Rica?

The subsidiary is a business form available for companies seeking to expand their operations. They can be established by both local and foreign companies.

What are the characteristics of a Costa Rican subsidiary?

The subsidiary is a type of company that:

is independent from the parent company;
can carry out the same activities as the parent business or operations falling outside those of the mother company;
is treated the same as domestic companies from a taxation point of view;
can own assets in Costa Rica.

What are the requirements to open a subsidiary in Costa Rica?

In terms of Costa Rican company registration, there are certain aspects to consider, among which:

the subsidiary must have a local registered address which must be secured before it is incorporated;
it must also have a local bank account;
in terms of ownership, the shareholder is the parent company, and its details must be set out in the bylaws of the Costa Rican business.

What are the steps to open a Costa Rican subsidiary?

establishing a company name, securing a legal address, and drafting the incorporation papers;
opening a bank account;
filing the documents with the Companies House;
obtaining tax identification and VAT numbers;
registering for social security purposes as an employer;
securing any business licenses (if necessary).

Here’s also our infographic on this subject:

What are the documents required for setting up a subsidiary in Costa Rica in 2026?

In terms of paperwork related to opening a subsidiary company apart from the Articles of Association and information about the parent company, the following should also be considered:

an application through which the parent company requests a corporate number;
submitting proof of payment of all company registration fees;
an impact study, if the capital of the company consists in real estate assets.

Also, the subsidiary must draft an announcement about the launch of the company that will be published in the National Gazette.

What legal form can a subsidiary take in Costa Rica?

It can be registered as a private or public limited liability company. However, in most cases, it is established as a private company.

Must I use the name of my company if I want to expand through a subsidiary in Costa Rica?

No. This condition applies to branches only.

Must I appoint a resident director when opening a subsidiary in Costa Rica?

No, you are not required by law.

Is a Costa Rican subsidiary required to obtain any business licenses?

Yes, depending on the operations to undertake, a business permit may be required. You can check these conditions with one of our company formation agents in Costa Rica BEFORE starting the registration procedure.

Can I hire local employees, or can I transfer workers for my Costa Rican subsidiary?

Both options are available. However, when relocating employees to Costa Rica, you must adhere to special immigration procedures.

Must I travel to Costa Rica to register a subsidiary or is remote registration available?

No, you are not required to travel to Costa Rica if you decide to be represented by our local agents.

How long does it take to open a subsidiary in Costa Rica in 2026?

The registration of a subsidiary takes about 2 months to complete.

The company incorporation process is similar to those in other countries, such as Austria.

Here is a video on the Costa Rican subsidiary:

What are the advantages of opening a subsidiary in Costa Rica?

One of the main advantages of choosing to create a subsidiary is having the opportunity to take up employment in Costa Rica, a procedure that is quite difficult through other channels.

Moreover, both the subsidiary and the parent firm will be safeguarded in terms of liability to third parties. This means that the parent company’s liability for the subsidiary activities is limited, while the subsidiary is free to operate in Costa Rica.

Do you offer subsidiary registration support in other countries?

Yes, we can also help you if you want to open a company as a foreigner in another country, such as Canada. Our local partners from BridgeWest Canada can assist you start any type business in Canada as a foreign investor. If you want to expand your business in Canada, there are many programs available, such as the Owner Operator program in Canada, which can grant to eligible candidates the right to permanent residency.

If you need advice or assistance in setting up a subsidiary in Costa Rica, please contact us.