Very often people want to start new projects and businesses and rush off to do the paperwork to incorporate a company. Once the corporation is incorporated then the following question arises: “Now that I have the company, what do I have to do to start operating my business? “ If you are one of those people, don’t worry, in this article, we will answer that question and guide you on what is required to start operating a new business.

First, it is very important to identify and be clear about the type of business you want to do, because depending on this, what you need to do may vary. In general, to start operating a business you will need to comply with the following:Now let’s look at each of these requirements in a little more detail:

• Land Use: It´s requested by any interested party, by completing the form provided by each Municipality. To complete the form, it is necessary to have the Folio Real Registration Number and the Cadastral Plan of the property where the operations will be carried out. It is necessary to obtain it before initiating the PSF process since it is a requirement to complete this procedure.

• Sanitary Permit to Operate (PSF): A Unified Form issued by the Ministry of Health must be filled out and a fee is charged depending on the risk category of the activity. This application has a cost that varies depending on the risk category of the activity, ranging from $30 to $100. In addition to the form, supporting documentation must be provided:

-ID Copy.
-Certificate of Incumbency .
-Affidavit
-Proof that no debts are held with the CCSS.

* Depending on the type of activity, additional documentation may be required, such as approval of plans, water availability study, environmental feasibility study, among others.

• Mandatory Labor Risks Policy (INS): It can be processed directly with the INS or through an insurance agent or broker.

A form must be filled out with the information of the business and provide copies of the identification card or certificate of incumbency. In this form, it is important to have the payroll information clear, since it must be declared, including the complete names of the employees, identification number, position, and salary. The policy has a cost that varies according to the activity and the insured amount, which is estimated according to the sum of the salaries.

• Registration with the CCSS: For this purpose, a form must be completed with all the pertinent information and documentation (legal status, copy of identity card, articles of incorporation, among others) of the company and the information of the payroll must also be indicated.

Once the registration is submitted and if no requirement is missing, an inspection by a CCSS Inspector will be made to the commercial premises within a period of 1 month, the employer must submit the corresponding forms to this entity and make the payment of the labor-payroll obligations.

• Registration with the Ministry of Finance: A single form must be completed as a taxpayer. There are two tax collection regimes, the traditional and the simplified regime. The main differences are as follows:

-Traditional: Sales Tax (VAT) returns must be filed on a monthly basis and Income Tax returns must be filed annually. The taxpayer is obliged to issue electronic invoices.

– Simplified: Sales and Income Tax are paid in a single act on a quarterly basis (April, July, October and January). The taxpayer is not obliged to issue invoices.

The activities that are within the simplified regime are the following: bars; canteens; taverns; retail traders; photographic studios; those who manufacture handmade footwear; those who manufacture furniture and its accessories and those who manufacture clay, earthenware, ceramic, and porcelain objects.

This form must be included in the Virtual Tax Administration, for which a user must be created.

● Patent or Commercial License: This is done through a form provided by each Municipality and the presentation of the requirements. It is important to take into account that all the above-mentioned procedures are prerequisites to apply for the commercial license. Therefore, it is important to process them before or together with the commercial license, since the corresponding receipts must be provided.

• Registered Trademark: This process is done by filing an application with the Industrial Property Registry in which a description of the products or services to be protected must be included, including the class according to the international classification, digital or printed copy of the logo design, if any. Trademark registration is not an indispensable requirement, however, it is highly recommended, since it provides security and added value.

As you can see there are a lot of procedures and requirements that must be fulfilled to start a business in the country, however, with the proper legal advice, this is a simple process that can be completed in as little as a couple of weeks.

It is important that you take all of this into account before starting a business as failure to comply with any of the above requirements may put your investment at risk and you may be subject to penalties.

At ERP Lawyers we have a team specialized in this matter that will gladly guide and support you so you can start your business. If you have any questions or require our services, do not hesitate to contact us at info@erplawyers.com.