Company Types in Costa Rica
Objectives
- Compare S.A. and S.R.L.
- Explain company formation
- Avoid misleading equivalents (Inc., LLC)
Explanation
The Sociedad Anónima (S.A.) is a corporation with shares, a board of directors and shareholders' meetings. The Sociedad de Responsabilidad Limitada (S.R.L. or Ltda.) has quotas and is managed by managers (gerentes). Avoid translating S.R.L. as 'LLC' without explanation – similar, but not identical. Formation is by public deed before a notary and registration in the Registro Nacional.
corporation (S.A.)
Company whose capital is divided into shares.
“They incorporated an S.A. in 2020.”
limited liability company (S.R.L.)
Company whose capital is divided into quotas.
“An S.R.L. is managed by managers.”
articles of incorporation
The founding document of a company (pacto constitutivo).
“The articles of incorporation were signed before a notary.”
share capital
The capital contributed by shareholders.
“The share capital is ten thousand colones.”
legal representative
The person authorised to act on behalf of the company.
“The president is the legal representative.”