The benefits obtained by companies that are certified and registered as Small and Medium Enterprises (SME’s) are many, such as the staggered collection of health insurance before the Costa Rican Social Security Fund, that is why it is important that you Register your company as a SME.

According to the State of the Nation, the probability of a company to operate in the business environment in Costa Rica for at least one year is 90%, regardless of the size of the company. Upon reaching the second year, the indicator drops to 63%, but in the case of microenterprises, the situation is even more serious, since it indicates that 48% will not reach 10 years of life. This is why the advantages become greatly beneficial for companies, if the life expectancy of businesses in our country is analyzed.

Under these analyzes, the formalization of businesses and companies becomes an incentive to achieve long-awaited stability. For a company to be classified as an SME, it must make a formal registration with the Ministry of Economy, Industry and Commerce (MEIC) and must meet certain requirements:

– Have an Occupational Risk policy issued by the National Insurance Institute (INS).
– Be registered with the Ministry of Finance with the income tax declaration up to date, either within the traditional or simplified regime.
– Submit the CCSS form or proof of independent worker, where it is shown that you are up to date with the obligations to that institution.
– Any company that meets at least two of these three requirements may opt for SME status. The approval will depend on a study carried out by the MEIC where aspects such as the size of the company, the number of employees and the sales generated are determined.

In addition to the aforementioned requirements, the applicant company or individual may not have outstanding debts with the CCSS, or those derived from the Worker Protection Law. It also cannot have been part of an investigation for breach of assurance by the CCSS.

Being a company registered as an SME has multiple advantages, such as:

– Participate as a supplier to the State SME.
– Financing, endorsements and guarantees of Fodemipyme.
– Business fairs and business meetings.
– Financial resources of the Development Banking System.
– Sanitary permit for the operation of micro-enterprises.

As a result of the pandemic caused by COVID-19, a measure was established to extend the validity of the SME status for a period of nine months, for those SMEs whose term of validity had the expiration date of March to December of 2020.

Recently, a reform to article 1 of Decree 42323-MEIC of April 23, 2020, was published in La Gaceta, called extension of the validity of the SME status before the Covid-19, where this validity of the SME status is extended for those SMEs whose term of validity had an expiration date between the months of January to December of the year 2021, inclusive, as long as the state of national emergency due to COVID-19 is maintained

If you require advice on register your company as a SME, ERP Lawyers puts at your disposal a team specialized in the matter. Do not hesitate to contact us!