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How to establish a gaming company in Costa Rica

12?August?2024
By?Ron?Mendelson

Costa Rica is a popular destination for entrepreneurs looking to establish online gaming companies, thanks to its favorable business environment, flexible regulatory framework, and progressive stance on cryptocurrency. However, there are many things that need to be clarified about what it takes to operate a gaming business in Costa Rica. This article will clarify the process, debunk common myths, highlight the benefits of setting up a gaming company in Costa Rica, and explain why working with Fast Offshore is the best choice.

The Myths About a Costa Rica Gaming License

One of the most common myths about Costa Rica is the existence of a "Costa Rica gaming license." Despite what some might claim, such a license does not exist. Costa Rica has no specific licensing authority or regulatory framework for online gambling.

Instead, what some refer to as a "gaming license" is the incorporation of a company with a business purpose defined as online gambling. This allows the company to operate online gaming activities from Costa Rica, provided that the services are offered to players outside the country. It’s important to understand that while this setup allows you to operate legally, it does not constitute a formal gaming license.

Why Establish a Gaming Company in Costa Rica?

Despite the lack of a formal licensing process, Costa Rica remains an attractive jurisdiction for several reasons:

Business-Friendly Environment: Costa Rica is politically stable and has a government that supports business activities. The regulatory environment is relatively relaxed, particularly when it comes to online gambling operations targeting international markets.

No Direct Taxation on Foreign Income: Costa Rica operates a territorial tax system, meaning income generated outside the country is not subject to local taxes. This is particularly advantageous for gaming companies serving a global audience.

Cryptocurrency Acceptance: Costa Rica is progressive in its stance on cryptocurrency. The government allows companies to use digital currencies for transactions and even permits employers to pay employees in crypto (with certain limitations). This makes it an ideal location for gaming companies looking to leverage cryptocurrency.

Cost-Effective Setup: Establishing a gaming company in Costa Rica is generally less expensive than in jurisdictions with stringent licensing requirements. The absence of a formal gaming license means lower setup and operational costs.

How to Establish a Gaming Company in Costa Rica

1. Incorporation
The first step in establishing your gaming company is incorporating a business entity. The most common entity type is a Sociedad Anónima (S.A.), similar to a corporation in other jurisdictions.

- Shareholders and Directors: You will need at least two shareholders and a board of directors with at least three members (a president, a treasurer, and a secretary). If necessary, the same person can hold these roles.

- Registered Agent: A local registered agent, typically a Costa Rican attorney, is required to manage legal matters and ensure compliance with local laws.

- No Minimum Capital Requirement: Costa Rica does not require a minimum capital amount for incorporation, making it accessible to startups.

2. Business License
Once incorporated, your company needs a business license, often called a “data processing license.” This license permits you to conduct online activities, including gambling, provided your services are aimed at international customers.

- Defining the Company’s Purpose: The company’s incorporation documents must clearly state its purpose, includes online gambling or related activities.

- License Application: Submit the necessary documents to the local municipality, including proof of a physical office in Costa Rica and payment of the required fee.

The Benefits of Working with Fast Offshore
Navigating the process of establishing a gaming company in Costa Rica can be complex, especially with the myths and misconceptions that abound. This is where Fast Offshore comes in. Here’s why you should consider partnering with Fast Offshore:

- Expertise and Experience: Fast Offshore has years of experience in the iGaming industry and a deep understanding of Costa Rican regulations. They can guide you through the entire process, ensuring your company is set up correctly and efficiently.

- End-to-End Service: From incorporation to obtaining your business license, Fast Offshore offers comprehensive services that cover every aspect of setting up your gaming company. They can also assist with ongoing compliance, ensuring your business remains in good standing.

- Tailored Solutions: Every gaming company is unique, and Fast Offshore recognizes this. They offer tailored solutions that meet the specific needs of your business, whether you’re a startup testing the waters or an established company looking to expand.

- Cryptocurrency Expertise: Fast Offshore’s expertise in this area is invaluable if you plan to use cryptocurrency for transactions. They can help you navigate the complexities of crypto payments and ensure that your operations are secure and compliant.

- Transparent Pricing: Unlike some providers who may try to sell you a non-existent "gaming license," Fast Offshore is transparent about the costs and what you’re getting. They offer fair pricing for their services and ensure you understand every aspect of the setup process.

Conclusion
Establishing a gaming company in Costa Rica offers numerous advantages, from cost savings to a favorable regulatory environment. However, it’s crucial to understand the realities of operating in this jurisdiction, mainly that no formal gaming license exists. By working with an experienced partner like Fast Offshore, you can navigate these challenges and set your business up for success. Whether you’re just starting out or looking to expand, Costa Rica could be the perfect location for your gaming company. Contact Fast Offshore today.