Costa Rica - Limited Company

Sociedad de Responsabilidad Limitada - LTDA - Limited Liability Company

This is a hybrid entity with characteristics of a corporation and of a limited partnership. It has a simpler structure than the corporation but more flexibility than the limited partnership. Liability of the company members is limited to the sum of quotas that they subscribe. It is administered by a General Manager who has full and several responsibility before third parties. There may be a Sub Manager to replace the General Manager in absence.

The level of the power granted to the manager can be set so as to remove the judicial representation from this officer, and making it technically very difficult to service a law suit to the company. Also provisions regarding the transfer of company quotas to non members can be conditioned so as to technically block an outsider from legally seizing a quota (known as charge order protection). The same can be done in regard to the distribution of dividends.