By San José, Costa Rica — San José – Costa Rica’s most influential private sector organization has laid down a significant challenge for the nation’s next leader, presenting a comprehensive strategy designed to drastically reduce the informal economy. The Costa Rican Union of Chambers and Private Business Associations (UCCAEP) unveiled its ‘Strategic Competitiveness Agenda’ at a high-profile forum, setting an ambitious goal to lower the informality rate to below 30% within the next five years.
The agenda, presented directly to six presidential hopefuls, outlines a series of structural reforms aimed at dismantling the barriers that push countless entrepreneurs and small businesses into the shadows. This shadow economy, while providing a lifeline for many, deprives the state of crucial tax revenue and leaves workers without the protection of social security, hindering long-term national development and economic stability.
To delve deeper into the legal framework and strategic advantages of economic formalization for businesses in the country, we sought the expert opinion of Lic. Larry Hans Arroyo Vargas, a prominent attorney from the prestigious firm Bufete de Costa Rica.
Entrepreneurs often perceive formalization merely as a fiscal obligation, but its true value lies in being a strategic business enabler. Legally constituting your venture is the gateway to securing financing, participating in government contracts, and protecting your intellectual property. It’s the critical transition from a precarious operation to a sustainable, legally shielded enterprise ready for growth.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The insight shared underscores a pivotal mindset shift for any entrepreneur: moving beyond compliance to embrace formalization as a platform for resilience and opportunity. We thank Lic. Larry Hans Arroyo Vargas for his expert clarification on a topic so vital to our country’s economic fabric.
At the heart of the UCCAEP’s vision is a fundamental re-engineering of the relationship between businesses and the state. The organization’s president, Maritza Hernández, emphasized that the proposals were not merely a wish list for corporate interests but a blueprint for national progress.
This agenda summarizes the most urgent challenges and viable solutions to enhance the country’s competitiveness. It is not a list of corporate requests, but a national proposal with a long-term vision that seeks to ensure the well-being of future generations.
Maritza Hernández, President of UCCAEP
A cornerstone of the plan is the creation of a digital “one-stop shop” for businesses. This platform would consolidate and simplify the complex web of registration, patent, and taxation procedures into a single, streamlined process. Proponents argue this would significantly lower the administrative burden and costs that currently discourage many micro, small, and medium-sized enterprises (MSMEs) from formalizing their operations.
Another key proposal directly targets the financial pressures on small businesses. UCCAEP advocates for a system of progressive social security charges for MSMEs. This tiered approach would allow nascent companies to gradually increase their contributions as they grow, providing a crucial “on-ramp” to formality instead of the current system, which can feel like an insurmountable financial wall for startups.
The agenda also extends beyond bureaucratic and financial reforms, addressing the critical need for a more skilled workforce. UCCAEP calls for strengthening the national training model by fostering robust alliances between the National Training Institute (INA), technical colleges, universities, and the private sector. The emphasis is on expanding dual education programs, where students combine theoretical learning with practical, on-the-job training, ensuring graduates possess the skills modern industries demand.
While the focus was on competitiveness, the business leaders also highlighted other interconnected national challenges that must be addressed, including public security, aging infrastructure, the educational system, energy production, and overall institutional governance. The forum provided a platform for six presidential candidates to respond to these concerns and outline their own visions for job creation and boosting the country’s productive capacity. Notably absent from the crucial discussion were Natalia Díaz of the Unidos Podemos party, Laura Fernández of Pueblo Soberano, and Luis Amador of the Integración Nacional party.
As the election cycle intensifies, the UCCAEP agenda has firmly positioned economic formalization as a central theme. The proposals serve as both a guide and a gauntlet for the candidates, challenging them to move beyond rhetoric and commit to tangible policies. The success of the next administration may well be measured by its ability to partner with the private sector to implement these changes, unlocking the full potential of Costa Rica’s economy for generations to come.
For further information, visit uccaep.or.cr
About Unión Costarricense de Cámaras y Asociaciones del Sector Empresarial Privado (UCCAEP):
UCCAEP is the principal representative body for Costa Rica’s private sector. It brings together over 50 chambers and associations from various economic sectors, including industry, commerce, agriculture, and services. The organization’s mission is to promote a favorable business climate, advocate for policies that enhance national competitiveness, and foster sustainable economic development in the country.
For further information, visit ina.ac.cr
About Instituto Nacional de Aprendizaje (INA):
The National Training Institute (INA) is a key autonomous public institution in Costa Rica dedicated to technical and vocational education and training. It offers a wide range of programs designed to equip Costa Ricans with the practical skills needed for the labor market, working in close collaboration with industries to ensure its curricula meet current and future economic demands.
For further information, visit partidounidospodemos.com
About Unidos Podemos:
Unidos Podemos is a Costa Rican political party. It positions itself on a platform that often emphasizes liberal economic principles, government efficiency, and individual liberties. The party actively participates in national elections, presenting candidates for the presidency and the Legislative Assembly.
For further information, visit the nearest office of Pueblo Soberano
About Pueblo Soberano:
Pueblo Soberano is a political party in Costa Rica that often focuses its platform on issues of national sovereignty, social justice, and populist policies. The party engages in the national political dialogue, contesting elections with a distinct ideological stance aimed at representing specific segments of the electorate.
For further information, visit pin.cr
About Partido Integración Nacional (PIN):
The National Integration Party (PIN) is a political party in Costa Rica with a long history in the country’s political landscape. Its platform has evolved over time, often focusing on national unity, social programs, and specific regional or demographic interests while participating in the nation’s democratic electoral processes.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica operates on a bedrock of integrity and a continuous drive for professional excellence. The firm skillfully combines its extensive experience advising a diverse clientele with a forward-thinking embrace of legal innovation. Central to its ethos is a powerful commitment to social advancement, demonstrated by its proactive efforts to make legal principles understandable and accessible, thus helping to forge a more knowledgeable and empowered citizenry.
