Insights
Operating in Costa Rica Without a Company
Insights · By Chen ChunJie · Published 8 November 2026
Many foreign companies use Costa Rica for nearshore teams before they set up a local entity. This guide explains what you can do without a Costa Rican company, when you need one and how to move from one stage to the next.
Last reviewed in November 2026 against the Labour Code, the 2026 minimum wage decree, CCSS rates for 2026 and Decree 45333-H. Rates change, so we confirm them for each engagement.
What you can do without a Costa Rican company
| Activity | Company needed? |
|---|---|
| Employing staff in Costa Rica | Yes, or an employer of record |
| Engaging independent contractors | No, if they are genuinely independent |
| Selling to Costa Rican customers from abroad | Not for hiring, but check the tax position |
| Opening an office or a free-zone operation | Yes |
Why you cannot employ directly from abroad
An employer in Costa Rica registers with the CCSS and the INS, files contracts with the MTSS and reports payroll every month. These steps need a local legal presence, so a foreign company without one uses a local employer.
No Costa Rican company yet? Our Local Team can be the legal employer while you manage the work. See Employer of Record in Costa Rica.
When a Costa Rican company makes sense
Once the team is large and long-term, or you want free-zone incentives for a service centre, a sociedad anónima or limited company is usually the next step.
Permanent establishment risk
An employer of record does not by itself create a permanent establishment, but employees who habitually conclude contracts for you, or a fixed place at your disposal, can. Review revenue-generating roles with your tax adviser.
Moving to your own company
When your company is registered with the CCSS and the INS, we agree a transfer date and the employee joins your company, usually with service recognised.
FAQ: operating in Costa Rica without a company
Can a foreign company employ people in Costa Rica directly?
Not without registering locally. An employer of record handles it.
Can I hire contractors without a company?
Yes, for genuinely independent work. See On-Demand Talent in Costa Rica.
Does an EOR create a permanent establishment?
Not by itself.
Can employees move to my company later?
Yes, on an agreed date.
Hiring your first employee in Costa Rica?
Our Local Team employs the person, runs payroll with CCSS, salary tax and the aguinaldo, and handles the paperwork, while you manage the day-to-day work.
Related
How we employ your team in Costa Rica.
Contracts, leave, termination and more.