Nine out of 10 business operators report great difficulty in starting a new business in Costa Rica, according to the Unión de Costarricense de Cámaras y Asociaciones del Sector Empresarial Privado. The chamber blamed the problem on the Costa Rican obsession with pushing papers. The organization called it tramitomanía.
The chamber did a survey and 84 percent of the respondents cited the difficulty of opening a new business due to the many licenses, permits and other approvals needed. The results coincides with the World Economic Forum index that said one of the problems is an inefficient bureaucracy, said the chamber.
Tramite is the Spanish word for some kind of encounter with officialdom, such as filing a sales tax report or seeking a business license.
Costa Rica is known for the time needed to establish a corporation. That can be up to 10 weeks and requires the efforts of a lawyer.