Sunday, August 18, 2019

Costa Rica Corporations Must Register Their Shareholders

Starting in September, all legal entities must register with the Central Bank of Costa Rica all shareholders and final beneficiaries that have over 15% participation in public limited companies or non-governmental organizations.

Those who do not do so will face high penalties and may even see their companies frozen. The penalties go from ¢1.3 million to ¢44.6 million. The fine is based on 2% of the entity’s gross income.

Aside from the fine, the freezing of procedures in the National Registry hinders almost all commercial and productive activities. There are about 310,000 legal persons who must submit their information to the shareholders registry.

The Transparency Registry and final beneficiaries is an agreement taken for Costa Rica’s entry into the Organization for Economic Cooperation and Development (OECD). It is a means to fight against tax fraud and money laundering.

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