ABC CONSTITUTION OF COMPANIES, THE PURCHASE OF REAL ESTATE AND PROCUREMENT OF RESIDENCE

Many of our foreign clients have similar concerns and interests when first discuss their investment plans in Costa Rica.

Almost all of them want know about the formation of corporations, purchase of property and the obtaining residence.

We consider these three issues are the main components of what we call "the typical investment package" which, just by following some basic steps will make its foray in Costa Rica a success.

CONSTITUTION OF COMPANIES IN COSTA RICA:

The typical limited liability company (Sociedad Anónima or SA) must be consisting of a minimum of two people before a Costa Rican Notary Public.

 After incorporation, the shares can be transferred and legally feasible to have a society in which one person is the owner of all shares.

 hose who constitute society must choose a name (which can be anywhere language, with translation into Spanish, and should not be a generic name or be similar to the name of any existing company elect a Board of Directors (which, by law, must have a minimum of three members, called President, Secretary and Treasurer) and a Controller.

 Each of these posts should be occupied by a person different however, the constituents may occupy them. Other important issues to be decided are the capital of the company (the more higher this should be paid more taxes)the number of shares composing the capital (under Costa Rican law actions can not be divided-not accept-stock splits? therefore, it is recommended to have a number of shares, enabling future distributions of the stake in the company) and the representation of society that is (must have at least one representative society's legal power to act on their behalf, however, at the time of the constitution or later, the powers of the representatives of society can be limited, for example, acts or specific amounts). Costa Rica has what we call a corporate system "hybrid. Writing constitution and any changes to the rules of society fall within the Public Registry, where anyone can access them. Furthermore, all transfers of shares of the company are recorded in the Record Book Shareholders, which is in the hands of society and can only be considered by the shareholders and board members of society others can only access it with a court order. When buying a property, it is more advisable to do so through a society. Thus transfers will be made more easily and also the structure corporate is more flexible for other transactions and for organizational matters.

PURCHASE OF REAL ESTATE

Most properties in Costa Rica are registered in a computerized called "Folio Real". This system is centralized at the offices of the Registry Public in San Jose. Before buying real estate (and even before considering seriously the offer to purchase a property) must be carried out a study of the property in the Folio Real. Such research will show all information on the farm (the name given to any type of property), including area, ownership, boundaries, location, mortgages and other charges. Some farms have not been incorporated into the Folio Real system, so that your registration still taking in special books that are in the Public Registry. Such properties could also be properly investigated in the Register.

When considering buying a property, the first question we must asked is whether we are being offered a property right or right to occupation. In the case of occupation, would be dealing with an estate that has not been registered, you can not study in the Public Registry and must pass through a long process to be entered. Property rights, by contrast, are registered and equivalent to the concept of property in any developed country. Another situation that we find on a farm, especially in the beaches, is the concession. In this case, the government gives an individual the right to use the farm for a period of time. Overall, the concession may be considered a lease. The registration system is different concessions of common property, and has particular requirements regarding zoning, terms, occupation, etc.. In conclusion, before buying, before bidding, even before considering seriously invest in a property, inquire about their situation and make a study registration these simple steps can save you money and effort, and definitely make your investment in Costa Rica worth.