Are you looking to set up an Online Gaming Business or a Payment Processing Business? If so you might want to consider applying for a Data Processing License in Costa Rica (“CR”).
Costa Rica Background
Costa Rica is a small (population 5 million) Central American country (bordered by Panama, Nicaragua, the Pacific Ocean and the Caribbean Sea) and is arguably the most politically and economically stable country in the region.
Historically the Costa Rican economy centred around agriculture but, since the dawn of the new millennium, CR has diversified its economic focus, in the process creating a boom in tourism, finance, and corporate services. Costa Rican residents now enjoy a high standard of living, social stability and some of the foremost education in Central America. Spanish is the first language but English is commonly spoken particularly in business circles.
In summary what you/we will need to do here is incorporate a Costa Rican Company (ie an S.R.L.) AND then apply for a Data Processing License (“DPL”).
For many years Costa Rican Corporations have been known and used in the offshore world as vehicles for online gaming. Hence included in the Articles of Incorporation of such companies appears typically the activity of ”online gaming and entertainment”. Some clients can function just with the CR company, however most clients come to us and request the DPL as Banks, Merchant Account Providers and Ewallet providers require to sight such a licence before they will agree to provide accounts or payment processing or merchant account services for CR Companies.
Step 1 Company Formation
First step is you will need to Incorporate a Costa Rica (“CR”) Company for Gaming:
Type of entity: S.R.L. (Sociedad de Responsabilidad Limitada)
Main characteristics: authorized for gaming in its bylaws, limited liability, offshore tax exempt, low maintenance, operated by a single director
Includes:
ü Articles of Incorporation
ü Share Certificates
ü Legal Books
ü Corporate Certification
ü Resident Agent*
ü Registered Address*
ü Official Translation to English
ü Tax Registration
*Included in the first year*
Legal Fees: USD 2,300 (includes registry fees, VAT and Yearly Corporations Tax)
Estimated Duration: 2-4 days (we offer the fastest incorporation service available compared to the normal 2-4 weeks of other companies)
After one year of operation, you will need to renew it by paying:
ü Legal Fees, Renewal of Resident Agent, Registered Address, Legal Book Custody, Yearly Corporations Tax Payment Diligence and Final Beneficiary Declaration: USD 950.00
ü Associated Expenses, Yearly Corporations Tax USD 150.00 paid with the incorporation and then every January.
Annual Renewal:
Re Gaming Businesses as advised there is no online gambling license in Costa Rica and that a company incorporated under the laws of Costa Rica can operate an online gaming business under a “data processing” license. The basic requirements to obtain such a license are:
- Office Lease Contract
- Health permit
- Workers insurance policy
A specific gaming license was issued as a tax in 2012, such license starts at US$40K per year and increases to US$60K and US$80K depending on the number of employees, This particular license was created for gaming companies that actually have employees in Costa Rica; thus far nobody has paid for such a license as it doesn’t provide any real benefit. Hence startups keep operating with just the CR Corporations and with the Data Processing License (DPL – see details below) which is especially valuable if you wish to be accepted by ewallet providers such as Skrill etc.
The following is the description that we give to our clients on a daily basis:
Step 2: Apply for a Data Processing License
Type of license: CR Business License
Process Includes:
ü Lease of Small Office Space at a selected local government
ü Zoning Permit at local government
ü Employer Registration at Social Security Agency
ü Work Risk Insurance at Insurance Agency
ü Health Permit at Ministry of Health
ü Business License at local government
Legal Fees: USD 9,750 (50% to begin, 50% with approval)
Estimated Duration: 3 months
After one year of operation, you will need to renew it by paying:
ü Yearly Renewal: USD 4,750 (after one year of operation includes one year lease and business license yearly taxes and processing fees)
Ancillary Services
We can also assist with drafting and/or reviewing the website and service terms and conditions. For these kind of jobs we charge an hourly rate ($US300 per hour). Average cost is usually between $1,500 and $US2,000. And we can advise on what countries residents it would be illegal to market such a business to (again on an hourly rate basis)
Would you like to know more? Then please Contact Us:
info@offshorecompaniesinternational.com
DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.
