When a country wants to enter the global market as a means for progress and economic and social development, it should offer expedited pathways for investors and entrepreneurs to start a business or to facilitate introducing their products and services to the economy.
The Doing Business 2009 report from the World Bank reports that formally opening a business in Costa Rica takes at least 60 days.
An analysis on the topic by Mario Bermudez Vives on Elfinancierocr.com shows, for example, that in Costa Rica, “The authorization process to export requires six documents and an estimated 18 days. Nearly double that of Europe: 4.5 documents on average, and 10.7 days.”
Since 1994, successive Costa Rican governments have said they will try to reduce bureaucracy but to date excess red tape remains a problem.
Laura Chinchila's new administration has also included bureaucracy among its list of priorities.
As an example, the current government gathered leaders from the Ministries for Trade (Comex), Health and Farming to discuss the optimization of trade agreements, which the La Prensa Libre editorial deems a good start. The paper says that the next step is to define specific actions to make procedural simplification a reality.
The time it takes to open a business has reduced from 36 to 13 days, and the number of procedures required to do so from 7 to 6.
Excerpt from the executive summary of the "Economic Report 2016 Cross-Border Trade Institutions and Red Tape" by Funides:
In this document the Nicaraguan Foundation for Economic and Social Development (Funides) will address issues of cross-border trade and red tape, particularly in relation to the ease of import and exporting, creating or formalizing a business and paying taxes and for social benefits.
Employers point to the thick web of paperwork that must be traversed in Costa Rica if you want to start a new business.
From a press release issued by the Costa Rican Union of Chambers and Associations in the Private Business Sector (UCCAEP):
Most entrepreneurs, according to the latest data from the Survey "Business Pulse" by the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP) indicate that in Costa Rica there are a number of constraints to the initiation of a new business in the country.
Receive more news about Business and Investment
Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.