Determine Max Wattage Of Fixture

Forms of Business Organization

6.1. Agents, Distributors and Partners

All foreign companies can freely do business in Costa Rica through distributors, dealers, by proxy or through a representative and agent of foreign companies, with the exception of agencies and branches of foreign companies whose products are manufactured in

Costa Rica, which can be distributed and directly and freely represent their product lines.

The representative can be anyone living in the country without distinction of nationality.

6.2. Franchise

The current growth of franchising in Costa Rica is slow, but not the fast food sector has been great. The first franchise to enter the market was McDonald's in 1970, followed by Pizza Hut, which entered in 1972 and now has over 36 stores with six mobile units. They are also now Burger King, TGIF Friday's, Tony Roma's, Denny's, Tre Fratelli, KFC, TCBY,

Papa John's, Taco Bell, Rostipollos, Domino's Pizza, Pollo Campero, Il Panino, among others.

The key success factor for franchisors consider entering the market of Costa Rica, is the careful selection of franchisees. The franchisor must have proper financial resources to enter and develop the market and a local contact who understands the complexity of the market.

6.3. Licenses

Licenses are not widespread in Costa Rica. Traditionally, foreign companies have exported to this country or have manufacturing or assembly operations there, independently or through joint venture agreements.

Foreigners can legally own and Costa Rican companies can invest in all areas not specifically reserved to the state or parastatals. Foreign corporations may be organized by law in several ways: as branches (except banking), joint ventures, wholly owned subsidiaries or companies locally incorporated.

9 Source: "Business Guide to Costa Rica, Ministry of ComRes price, Turi smo and QEP OOD and Medium Enterprises,

Ministry of Economy and Finance, Spain. Ministry of Foreign Trade of Costa Rica. Updated 12/10/2008.

6.4. Commercial Law

Rican commercial law provides for various types of commercial institutions. The main ones are as follows:

a) The corporation

b) The limited liability company

c) general partnership

d) The limited partnership

Traditionally, corporations and limited liability companies have been the most important legal instruments used and remain so today.

6.5. Starting a business

To establish a company should consider the following:

• Company: is the most common form of organization for investors .

• Foreigners have the same rights as nationals for the establishment of companies.

• To establish a company must meet several stages:

-Creating Company on the National Register

-Register as employer Social Security Fund and the Institute

National Insurance

-Register with the General Directorate of Direct Taxation

-Order

Municipal Patent

–Gestionar el permiso de operación del Ministerio de Salud.

6.6. Contrataciones

• No existen restricciones para contratar extranjeros ni un número mínimo de nacionales.

• La jornada laboral ordinaria es de 48 horas semanales -8 horas diarias.

• Unions are recognized by the Constitution, but they are almost nonexistent in the private sector.

• Foreigners to work in the country must have a residence permit or a temporary work permit.

• The employer has the right to terminate the employment contract at any time with or without cause for dismissal.

• There

minimum wage is adjusted twice a year depending on the increase in the cost of living.