A StartUp is known in Spanish as “Emerging Company”. In other words, a newly created company that, thanks to its scalable business model and the use of new technologies, has great possibilities of growing and, of emerging. This business modality has become increasingly popular over time because it goes hand in hand with the growth of technology and the Internet, which in addition to radically changing the lives of human beings, also the way of creating companies.

They are the new companies that have a strong technological component at hand, and this is what gives them the opportunity to grow in the business world. This technological component allows them to scale their business quickly, and with a lower capital requirement than traditional companies. Companies like Facebook, WhatsApp and Google started out as Startups and today their growth has taken them to where they are positioned socially and economically.

These are companies whose base is their ability to change and adapt, and therefore human capital is one of the most important elements since creativity and innovation that the company needs to emerge comes from it. And its success depends on creating something innovative and revolutionary.

They are companies that most of the time start with minimum capital investment, and that subsequently and according to their growth seek to increase their capital through investments by third parties, whether individuals or legal entities, to continue developing and growing economically speaking to generate a higher impact.

Purpose of a startup
The main objective of a Startup is to bring a product or service innovative enough to fill existing gaps in the current market, to grow rapidly using technological means to have a global reach. And, in addition, to get the big capitals to feel interested in investing in this business so that the company emerges and is financed at the same time.

Advantages of Startups
Building a start-up company has great advantages such as the following:

– They have a great possibility of expansion compared to other types of companies thanks to their great use of technologies and computer systems. This allows them to reduce operating costs and have a greater reach in terms of the public, making a lower investment. That is, less investment, more scope.
– They are companies that can generate short-term profits as they encourage private investors to make large contributions of capital and even personnel for the growth of the company.
– They can carry out their activities without the need to have a physical space for workers and in many cases many personnel is not required, which, in the same way, helps to reduce costs.
– Foster teamwork and encourage creativity to develop innovative ideas that allow them to establish themselves for a long time in the market.
– They take customer service very much into account, to meet the expectations of their users through ideas, and comments about the products or services received.

In Costa Rica we have very successful emerging companies in the field of science, and technology and, over time, it has been discovered that it is a country with great opportunities for this type of company.

If you require legal advice on this matter, on the regulation of this type of company, permits necessary to operate, labor aspects and conditions of workers to consider, obligations that must be met by this type of company, banking regulations, in ERP Lawyers we have a team of experts, who can guide and collaborate in this matter. We invite you to contact us by email to info@erplawyers.com.