Best Merger & Acquisition Lawyers in Costa Rica

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Kelso.Legal
Guanacaste, Costa Rica

Founded in 2017
50 people in their team
Spanish
English
Fabian is an attorney specialized in businesses, real estate and entrepreneurship. His work experience began in the year 2000. He has a Law Degree (Licentiate) from the University of Costa Rica, Rodrigo Facio campus, as well as Master's Degree (LL.M.) with emphasis in Business Law from...
MG Law
Guanacaste, Costa Rica

Founded in 2022
10 people in their team
Spanish
English
The boutique concept of our law firm is provided not just for our number, as for the quality of the services that differentiates us from other legal offices. Our cases are always handled by the partners of the firm, who, under our work philosophy, give personalized attention to each case and fluid...
JARA RICO Law Firm
San Jose de la Montana, Costa Rica

Founded in 2012
50 people in their team
Spanish
English
AN EXPERIENCED AND DEDICATED WORK TEAMOur firm provides access to a team rich in legal knowledge and experience that is invaluable. Our approach is unique in that each case receives personalized attention from our most experienced colleagues.OUR MISSIONProvide comprehensive legal services of the...
AG Legal
San Jose de la Montana, Costa Rica

Founded in 1996
50 people in their team
Spanish
English
MISSIONWe are a company that provides comprehensive legal services, focused on satisfying the needs of our clients, through a specialized, reliable and proactive human team; from Costa Rica and internationally.VISIONTo be a leading company in legal services at a local and international level in...
Arista Legal
Guanacaste, Costa Rica

Founded in 2000
50 people in their team
Spanish
English
AristaLegal is composed of a multidisciplinary team highly trained and experienced in the design and execution of legal, financial, and tax strategies tailored to the demands of today’s world. We provide practical, efficient, and effective solutions, customized to meet the specific needs of each...
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About Merger & Acquisition Law in Costa Rica

Merger and Acquisition (M&A) law in Costa Rica governs the legal processes involved when companies combine (merger) or one entity purchases another (acquisition). This area of law plays a crucial role in the country’s dynamic business environment, which is open to both domestic and foreign investments. The legal framework for M&A in Costa Rica is a blend of local commercial laws, international standards, labor regulations, and regulatory compliance, ensuring that such transactions are conducted in a transparent and lawful manner.

Why You May Need a Lawyer

Seeking legal advice is essential in M&A transactions, given their complexity and potential impact on your business. Here are some common situations where legal help is crucial:

  • Structuring and negotiating the terms of the deal to protect your interests
  • Conducting due diligence to identify legal risks, hidden liabilities, and regulatory requirements
  • Drafting and reviewing contracts, letters of intent, and merger agreements
  • Ensuring compliance with local laws, tax regulations, and foreign investment rules
  • Obtaining necessary governmental approvals and permits
  • Resolving disputes or complications that may arise during or after the transaction
  • Advising on labor, intellectual property, and environmental matters
  • Facilitating smooth transfer of ownership and management

Local Laws Overview

M&A in Costa Rica is mainly governed by the Commercial Code, the Law for the Promotion of Competition and Effective Consumer Defense, and sector-specific regulations. The most relevant legal aspects include:

  • Acquisition Structures - Transactions can be structured as share purchases, asset purchases, or mergers, each with distinct legal implications
  • Antitrust Compliance - Transactions above certain thresholds must be notified to and approved by the Competition Authority (COPROCOM) to prevent monopolies or anti-competitive behavior
  • Foreign Investment - Foreign entities can generally participate in M&A transactions, but some sectors may have restrictions or require prior authorization
  • Tax Considerations - Capital gains, transfer taxes, and VAT may apply depending on the structure of the deal
  • Labor Issues - Employee rights, transfer of workforce, and severance obligations must be carefully reviewed, especially in mergers or business sales
  • Due Diligence and Disclosure - Parties must conduct thorough due diligence of target companies, including reviewing corporate records, contracts, licenses, and liabilities
  • Corporate Approvals - Shareholders and boards of directors may need to approve the transaction in accordance with corporate bylaws and the law

Frequently Asked Questions

What is the difference between a merger and an acquisition?

A merger involves two companies combining to form a single entity, while an acquisition occurs when one company buys another company or its assets, integrating it into the acquiring company.

Are there restrictions for foreign investors in M&A transactions in Costa Rica?

Generally, foreign investors can participate in M&A activities in Costa Rica without restriction. However, sectors like banking, insurance, telecommunications, and energy may have specific regulations or require governmental approval.

Is antitrust approval mandatory for all M&A transactions?

Antitrust approval from COPROCOM is required if the transaction exceeds certain financial thresholds or is likely to impact competition in Costa Rica. Legal counsel can help determine if notification is necessary.

How long does a typical M&A process take in Costa Rica?

The timeline varies depending on the complexity of the transaction, required approvals, and due diligence findings. On average, it can take from a few months up to a year.

What are the key steps in an M&A transaction?

Typical steps include initial negotiations, signing a letter of intent, conducting due diligence, drafting and negotiating contracts, obtaining necessary approvals, and completing the transfer of assets or shares.

What are the main legal risks in an M&A transaction?

Common risks include undisclosed liabilities, invalid contracts, labor claims, non-compliance with regulations, and potential for antitrust issues. Legal due diligence is crucial to mitigate these risks.

Do employees have rights during an M&A?

Yes, Costa Rican labor law protects employees during M&A transactions. Employee contracts must be honored, and in case of termination, proper compensation must be provided according to the law.

How are M&A transactions taxed in Costa Rica?

Taxes that may apply include capital gains tax, transfer tax, and sometimes VAT, depending on the structure. A legal and tax adviser should be consulted to assess your specific situation.

Is it necessary to register the M&A transaction with a government entity?

Some M&A transactions, especially asset transfers and certain mergers, require registration with the National Registry or other authorities. Your lawyer can guide you through the necessary filings.

What documents are required for an M&A transaction?

Key documents include letters of intent, due diligence reports, corporate approvals, purchase agreements, merger deeds, and regulatory filings. The exact documentation depends on the nature of the transaction.

Additional Resources

If you are seeking further information or official guidance, the following resources and institutions may be helpful:

  • Comisión para Promover la Competencia (COPROCOM) - Competition authority responsible for antitrust reviews
  • National Registry (Registro Nacional) - Entity in charge of registering business and property transactions
  • Ministry of Economy, Industry, and Commerce (MEIC) - Oversees commercial regulations
  • Costa Rican Bar Association - Resource for finding licensed legal professionals
  • General Directorate of Taxation - Guidance on tax obligations in M&A transactions

Next Steps

If you are considering or involved in a merger or acquisition in Costa Rica, it is important to seek specialized legal advice early in the process. Here are recommended steps:

  1. Identify your objectives and gather preliminary information about the transaction
  2. Consult a Costa Rica-based attorney with experience in M&A to assess feasibility and risks
  3. Plan a detailed due diligence process to uncover any legal, financial, or regulatory issues
  4. Work with your lawyer to structure the deal and prepare all necessary documents
  5. Secure all required approvals and comply with registration requirements
  6. Ensure smooth transition of employees, assets, and management responsibilities

Taking these steps with professional legal guidance helps safeguard your interests and ensures compliance with Costa Rican laws in your merger or acquisition process.

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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.