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Due to the wealth of knowledge that readers of this forum have, I thought this would be the best place to ask.
I am debating the idea of starting a business in CR (in the pre-preliminary planning stages). I have been given the opportunity to acquire some contract work doing Application development and data creation for 3-4 consulting firms in the US. This business would start small and employ 2-3 workers plus myself and secretary (my wife). This is a highly technical field and I have been in contact with university professors there and they assure me that the skilled workforce is there and the business sounds viable.
My questions are:
What would be the first steps in starting a business in CR?I would want to have the business in the Central Valley, in San Jose would not be necessary, as we are not competing in the Costa Rican market. Could someone please suggest an area that would be secure, and have access to high speed internet?
I need to be in constant contact (via phone) with clients in the US, what is the best way to achieve this from CR?
Also, with a small business, is it necessary to have an office in a commercially zoned area or could I do this from a home office?
Thank you all in advance for your help.
Good to hear that you are looking into this and doing your homework carefully …
The best, brightest bilingual, high-tech’ employees can be found in the Central Valley area which surrounds San Jose. However, like everywhere else, there is stiff competition for these people.
I would suggest that you speak first with an attorney about how to set your business up because your residency and maybe the residency status of your key employees (your wife) could depend on how you structure your business.
Please remember that Costa Rica Labor Laws are COMPLICATED and you should not try to cut corners when it comes to getting good advice when you are employing people.
Although many attorneys and other professional services firms work out of houses, there may be ‘incentives’ applicable should this become a successful long-term business employing more people and that might also affect where you set up your business.
So plan carefully, think big and think long-term and imagine how involved things could become if you had 50 employees rather than 2-3 and you should be fine.
Best wishes and good luck!
Scott Oliver – Founder
WeLoveCostaRica.comScott, Thanks for the information, and word of encouragement.
Actually, the residency should not be an issue. My wife is a Costa Rican citizen, this is one of the reasons for starting the business there. As her spouse I can easily gain residency, and be able to work legally.
The farthest out of the Central Valley I had thought about going (if I can start from my home office) would be San Ramon (I love the place). I just do not know if the technological infrastructure is there yet.
Like I mentioned in my original post, I am in contact with some of the university professors. We also discussed typical salaries for graduates, and I am certian I can be competetive with salaries, etc.
I am pretty young (just hit the big 30) and thinking about relocating and working solo for a year or so, until I get the business completely planned. I don’t want to get in over my head. During this time would it be more advantageous to create a business in CR and have clients do business with it, or continue to pay me in the US?
Hmmmmm! That’s a tough one:-)
Do I want to pay the outrageous high income taxes that would probably apply in the USA or maybe structure myself legally offshore – like most of the Fortune 500 these days – and avoid as much tax as possible?
Let me think about that one and get back to you… Hee!
Scott Oliver – Founder
WeLoveCostaRica.comPS. Before I get beaten up here, I should stress that I report the income on about five different companies in Costa Rica and do pay income taxes here and apart from my real estate investments, I spend well over $100K per annum in the country.
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