Costa Rica: Types of Company
Limited Liability Corporation
The limited liability company (sociedad limitada) limits the liability of the members to the value of the unpaid capital. It is governed by section 104(a) of the Commercial Code. Although at incorporation the company must have 2 subscribers a sole shareholder is subsequently permitted. Corporate shareholders are not permitted.
The principal difference between a limited liability company and a stock corporation lies in the level of administration. Instead of being run by the directors the limited liability corporation can be managed by a manager with broad powers of attorney and so in this respect resembles a common law partnership. By contrast the administration of a stock corporation is subject to very detailed rules (see below).
Limited liability companies are however not very popular.