Company Registration in Nicaragua- An Overview

Aspect Details
Timeline The timeline for company formation in Nicaragua takes around 2 to 5 weeks.
Benefits

The benefits of obtaining a company registration in Nicaragua are as discussed below:

  • Limited Liability Protection
  • Greater Access to Capital
  • Perpetual Existence
  • 100% Foreign Ownership
  • Tax Incentives
  • Political & Economic Stability
  • Repatriation of Profits
  • Strategic Geographic Location
Documents Needed

The documents needed to apply for company registration in Nicaragua are provided below:

  • Notarized charter and articles of incorporation (Escritura de Constitución)
  • Notarized power of attorney (if applicable)
  • Proof of company name reservation obtained from the DGI
  • Proof of the corresponding fees payment
  • Valid passports and other identification proof of all shareholders and directors
  • Copy of investment registration certificate
  • Details of the company address proof in Nicaragua
  • Bank reference letter confirming the good financial standing of shareholders
  • Application form for taxpayer registration (RUC- Registro Único de Contribuyentes)
  • Additional company documents (if necessary)
Eligibility Criteria

The eligibility criteria required for company registration in Nicaragua are as follows:

  • A minimum startup capital of US$1 or its equivalent in other currencies
  • A minimum of 2 shareholders
  • A legal representative who is a Nicaraguan resident or citizen
  • A foreign investor certificate with the Ministry of Development, Industry and Trade (MIFIC)
  • A minimum of 2 directors (natural or legal persons)
  • Registered office address that serves as the official address of the company
  • Additional business licenses and permits
Types of Business Structure

The types of business structures in Nicaragua are as follows:

  • Sole Proprietorship (Empresa Individual)
  • Limited Liability Company (Sociedades Colectivas de Responsabilidad Limitada- SRL)
  • Corporation (Sociedad Anónima- SA)
  • General Partnership (Sociedad Colectiva)
  • Limited Partnership (Sociedad en Comandita- S. en C.)
  • Branch Office (Sucursal de Sociedad Extranjera)
  • Representative Office (Oficina de Representación)
  • Offshore Company (Empresa Offshore)
TTop Businesses Seeking Company Registration in Nicaragua

The top businesses seeking online company registration in Nicaragua are as follows:

  • Hotels, Resorts, and Travel Agencies
  • Coffee and Cocoa Processing Units
  • Solar and Wind Energy Projects
  • Apparel and Footwear Manufacturing
  • Seafood Processing Plants
  • Residential and Commercial Property Development
  • Language Schools and Training Institutes
  • Private Clinics and Pharmacies
  • IT Service Providers and BPOs
  • Freight Forwarding and Customs Brokerage
Process

The process to obtain online company registration in Nicaragua is as follows:

  • Step 1: Determine Business Activity
  • Step 2: Reserve a Unique Business Name
  • Step 3: Draft and Execute Company Documents
  • Step 4: Submit the Act of Incorporation at VUI
  • Step 5: Register as a Trader and Register Accounting Books
  • Step 6: Obtain Single Registration Document (DUR)
Post-Company Registration Compliance Requirements

The post-company registration compliance requirements are as follows:

  • Obtain Tax Identification Number (NIT) with the General Directorate of Revenue (G|DGI)
  • Obtain Single Taxpayer Registration Card (RUC)
  • Secure registration with the Nicaraguan Social Security Institute (INSS)
  • Secure registration with the Ministry of Labour
  • Obtain sector or industry-specific business licenses or permits
  • Provide a report to the Registry of Final Beneficiary
  • Register with the corresponding municipality to obtain a commercial operation permit
  • Secure municipal registrations to develop business operations
  • Open a corporate bank account for Nicaragua business transactions
How Enterslice Can Help You?
  • 10+ years of proven experience in company registration in Nicaragua
  • Helped 500+ entrepreneurs to successfully register their companies in Nicaragua
  • Holds in-depth knowledge of local business laws and regulatory compliance
  • Offers a high success rate with business incorporation in Nicaragua
  • Provides comprehensive document support for smooth business registration
  • Provided due diligence support and checks for local and international clients
  • Provides end-to-end incorporation support and assistance
  • Offers customized solutions to meet the unique requirements of each client
  • Assistance with selecting the right business structure in Nicaragua
  • Offers transparent pricing, with no hidden costs
  • Provides support for securing foreign investments
  • Provides real-time legal updates and changes in Nicaraguan laws

Your Partner for Hassle-Free Company Formation in Nicaragua

Let Enterslice assist you in setting up your dream company in Nicaragua and tap into the growing Central American market with company formation in Nicaragua.

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Effortless Company Registration in Nicaragua Guaranteed!

Nicaragua, located in the centre of the Central American isthmus, is a prime destination for entrepreneurs seeking to establish a corporate entity. With its strategic location, competitive operational costs, and investor-friendly policies, company registration in Nicaragua offers immense growth potential and access to both the Pacific and Atlantic markets.

Company registration in Nicaragua is ideal for those seeking to tap into the region’s growing sectors, like tourism, agriculture, renewable energy, and manufacturing. The consistently improving country’s infrastructure, skilled workforce, and government incentives make it an attractive choice for international investors.

The country’s stable macroeconomic policies, skilled workforce, and favourable trade agreements create a fertile ground for profitable ventures. Connect us now to ensure a hassle-free, fully compliant business setup in Nicaragua, without a visit to government offices, and no hidden charges!

Strategic location connecting North & South America

Competitive corporate tax rates

Access to major free trade agreements (CAFTA-DR & More)

Skilled and cost-effective workforce

Investor-friendly government policies

Growing tourism and export-oriented industries

Opportunities in renewable energy and agribusiness

Double taxation avoidance treaties with multiple countries

Expanding infrastructure and logistics network

100% foreign ownership in various sectors

Business Structures for Company Registration in Nicaragua

The investors seeking company registration in Nicaragua choose from the different types of business structures, depending upon their business goals, preferences, and operational needs, as discussed below:

SARL

Sole Proprietorship (Empresa Individual)

A sole proprietorship, commonly known as Empresa Individual, is a form of business structure owned and managed by a single individual. This form of business entity is easy to register, assuming the owner holds unlimited liability for all debts and obligations of the business.

sa

Limited Liability Company (Sociedades Colectivas de Responsabilidad Limitada- SRL)

A limited liability company, which stands for Compañía de Responsabilidad Limitada, or Sociedades Colectivas de Responsabilidad Limitada, i.e., SRL, is a business structure having liability limited to the members’ capital contributions.

Enterprise Individuelle

Corporation (Sociedad Anónima- SA)

A corporation, which stands for Sociedad Anónima, i.e., SA, is one of the most common legal entities for business operations in Nicaragua. These entities generally focus on the capital divided into shares.

General Partnership

General Partnership (Sociedad Colectiva)

A general partnership, which stands for Sociedad Colectiva, is a business entity formed by two or more partners, having a share in profit management and unlimited liability of the business.

Limited Partnership

Limited Partnership (Sociedad en Comandita- S. en C.)

A limited partnership, commonly known as Sociedad en Comandita, i.e., S. en C., is a form of business structure that involves two categories of partners: comanditados (general partners) and comanditarios (limited partners).

Branch Office

Branch Office (Sucursal de Sociedad Extranjera)

A branch office, also known as Sucursal de Sociedad Extranjera, is an extension, acting on behalf of a foreign parent company and retaining full legal and financial liability for its operations.

Representative Office

Representative Office (Officina de Representación)

A representative office, commonly known as Officina de Representación, is a liaison office that cannot directly engage in commercial activities. However, this structure is used for market research, brand promotion, and establishing business connections.

Representative Office

Offshore Company (Empresa Offshore)

An offshore company, commonly known as Empresa Offshore, is a form of business structure operating primarily outside the jurisdiction of the country. It is used for asset protection, holding investments, or international trade activities, varying based on the jurisdiction.

How to Register a Company in Nicaragua?

To register a company in Nicaragua, the entrepreneurs need to follow the prescribed procedure as discussed below:

Determine Business Activity

Initially, the entrepreneurs must determine the type of business activity and collect information related to the promoters, beneficiaries, and managers of their company.

Reserve a Unique Business Name

The next step requires the entrepreneurs to reserve a unique business name with the General Directorate of Intellectual Property Registry (DGPI) of Nicaragua.

Draft and Execute Company Documents

The entrepreneurs are further advised to draft and execute the Act of Incorporation and the bylaws, including details of shareholders, capital structure, and business purpose.

Submit the Act of Incorporation at VUI

The entrepreneurs are further required to submit the Act of Incorporation at the VUI, which stands for Ventanilla Unica de Inversiones (Investment Service), and is processed by the Commercial Registry .

Register as a Trader and Register Accounting Books

Once the act of incorporation has been processed, the entrepreneurs must secure registration as a trader and also register the accounting books with the commercial Registry. This procedure is done at the VUI.

Obtain Single Registration Document (DUR)

Next, entrepreneurs must obtain a single registration document (DUR, for its acronym used in Spanish) at the VUI, integrating registrations for municipal license, Nicaraguan Social Security Institute (INSS) License, and Taxpayer Registration (RUC) from the General Revenue Department.

Timeline for Online Company Registration in Nicaragua

The estimated timeline for online company registration in Nicaragua takes around 2 to 5 weeks, depending on the complexity of the structure, domicile of the company, Municipality, and the department to which it corresponds.

Company Name Reservation: 1 to 3 Working Days

It takes around 1 to 3 working days to submit a company name reservation application to the Registro Mercantil.

Draft and Notarize Articles of Incorporation: 1 Week

It takes around 1 week to prepare and notarize the articles of incorporation (Escritura de Constitución) before a Nicaraguan notary public.

Registration with Commercial Registry: 1 to 2 Weeks

It takes 1 to 2 weeks to submit Articles of Incorporation and secure registration with the Registro Mercantil (i.e., Commercial Registry) of Nicaragua.

Tax Registration (RUC): 2 to 4 Weeks

The time taken to apply for tax registration (Registro Único de Contribuyentes- RUC) with the Dirección General de Ingresos, i.e., DGI takes around 2 to 4 weeks.

Get Sector-Specific Permits: Varies

The time taken for obtaining sector-specific permits and licenses for regulated industries such as tourism, food, and manufacturing varies based on the requirements, delays, and other factors.

Documents Needed for Nicaragua Business Incorporation

These are the documents needed for securing Nicaragua business incorporation, as mentioned below:

Notarized charter and articles of incorporation (Escritura de Constitución)

Notarized power of attorney (if applicable)

Proof of company name reservation obtained from the DGI

Proof of the corresponding fees payment

Valid passports and other identification proof of all shareholders and directors

Copy of investment registration certificate

Details of the company address proof in Nicaragua

Bank reference letter confirming the good financial standing of shareholders

Application form for taxpayer registration (RUC- Registro Único de Contribuyentes)

Additional company documents (if necessary)

Benefits of Online Company Registration in Nicaragua

Online company registration in Nicaragua offers a range of strategic, financial, and operational benefits for both local and foreign investors, as discussed below:

Nicaragua Business Incorporation

Limited Liability Protection

The business owners seeking online company registration in Nicaragua enjoy limited liability protection, meaning their personal assets are protected against the company’s debts and liabilities.

Greater Access to Capital

The investors seeking to register their company in Nicaragua gain enhanced credibility with banks, investors, and suppliers, making it easier to secure funding and attract investment opportunities.

Perpetual Existence

An entrepreneur seeking registration in Nicaragua continues to operate regardless of changes in ownership or management, ensuring long-term business continuity in every situation.

100% Foreign Ownership

Nicaraguan laws allow 100% foreign ownership in every economic sector, without restrictive visa or work permit requirements for investors.

Tax Incentives

The entrepreneurs seeking registration in Nicaragua benefit from exemptions on income tax, VAT, and import/ export duties, particularly in priority or export-driven industries.

Political & Economic Stability

Nicaragua offers a politically and economically stable macroeconomic environment, offering consistent growth opportunities and creating a secure atmosphere for investment in recent years.

Repatriation of Profits

The Nicaraguan foreign investment laws allow 100% repatriation of profits and transfer of funds abroad by foreign investors seeking to register their business structure.

Strategic Geographic Location

Strategically located at the centre of North, South, and Central American countries, Nicaragua allows easy access to regional and Caribbean markets, making it a prime hub for trade and business.

Eligibility Criteria for Company Formation in Nicaragua

Company formation in Nicaragua requires compliance with the following eligibility criteria, as discussed below:

  • Minimum Capital: A minimum startup capital required for company formation in Nicaragua is around US$1 or its equivalent in other currencies. However, it is common for companies to have a higher initial capital contribution, often around C$10,000 (approximately US$320).
  • of Shareholders: A minimum of 2 shareholders, either individuals or corporations, are required for company formation in Nicaragua.
  • Appoint Legal Representative: The shareholders of the corporate structure must appoint a legal representative who is a Nicaraguan resident or citizen.
  • Foreign Investor Certificate: The foreign investors holding investments above US$30,000 must secure registration with the Ministry of Development, Industry and Trade (MIFIC) and obtain a foreign investor certificate useful for company formation in Nicaragua.
  • Board of Directors: A minimum of 2 directors (natural or legal persons), including the positions of president and secretary, are required for the company formation in Nicaragua.
  • Registered Office: The entrepreneurs seeking company formation in Nicaragua must register an office address that serves as the official address for receiving legal documents.
  • Additional Permits and Licenses: The entrepreneurs must obtain additional business licenses and permits, varying based on the requirements and type of business structure being registered in Nicaragua.

Industries & Businesses Permitted for Nicaragua Business Incorporation

The list of top industries and businesses permitted for Nicaragua business incorporation is as follows:

Industries Permitted for Foreign Company Setup in Nicaragua

  • Tourism and Hospitality
  • Agriculture and Agribusiness
  • Renewable Energy
  • Manufacturing and Assembly
  • Fisheries and Aquaculture
  • Construction and Real Estate
  • Education and Training Services
  • Healthcare and Medical Services
  • ICT and Software Development
  • Logistics and Transportation

Businesses Permitted for Nicaragua Business Incorporation

  • Hotels, Resorts, and Travel Agencies
  • Coffee and Cocoa Processing Units
  • Solar and Wind Energy Projects
  • Apparel and Footwear Manufacturing
  • Seafood Processing Plants
  • Residential and Commercial Property Development
  • Language Schools and Training Institutes
  • Private Clinics and Pharmacies
  • IT Service Providers and BPOs
  • Freight Forwarding and Customs Brokerage

Post-Nicaragua Company Incorporation Services

Once your company is legally incorporated, the next stage requires the entrepreneurs to obtain mandatory post-company incorporation licenses and permits, as stated below:

  • Obtain Tax Identification Number (NIT) with the General Directorate of Revenue (G|DGI)
  • Obtain Single Taxpayer Registration Card (RUC)
  • Secure registration with the Nicaraguan Social Security Institute (INSS)
  • Secure registration with the Ministry of Labour
  • Obtain sector or industry-specific business licenses or permits
  • Provide a report to the Registry of Final Beneficiary
  • Register with the corresponding municipality to obtain a commercial operation permit
  • Secure municipal registrations to develop business operations
  • Open a corporate bank account for Nicaragua business transactions
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Why Trust Enterslice for Company Registration in Nicaragua?

Enterslice is a trusted partner simplifying the complex process of company registration in Nicaragua. Connect with us today to get expert guidance for expanding your business journey in Nicaraguan markets:

  • 10+ years of proven experience in company registration in Nicaragua
  • Helped around 500+ entrepreneurs to register their companies in Nicaragua
  • Holds in-depth knowledge of local business laws and regulatory compliance
  • Offers a high success rate with business incorporation in Nicaragua
  • Provides comprehensive document support for smooth business registration
  • Provided due diligence support and checks for local and international clients
  • Provides end-to-end incorporation support and assistance
  • Offers customized solutions to meet the unique requirements of each client
  • Assistance with selecting the right business structure in Nicaragua
  • Offers transparent pricing, with no hidden costs
  • Provides support for securing foreign investments
  • Provides real-time legal updates and changes in Nicaraguan laws

FAQs on Company Registration in Nicaragua

Have a look at the following answers to the most asked questions:

The process to register a company in Nicaragua requires compliance with the following steps, as provided below:

  • Step 1: Determine Business Activity
  • Step 2: Reserve a Unique Business Name
  • Step 3: Draft and Execute Company Documents
  • Step 4: Submit the Act of Incorporation at VUI
  • Step 5: Register as a Trader and Register Accounting Books
  • Step 6: Obtain Single Registration Document (DUR)

Yes, a US citizen is eligible to do business in Nicaragua.

According to the progressive tax rates in Nicaragua, the taxes must be paid only on the Nicaraguan-source portion of your income. However, all foreign-sourced income in Nicaragua is exempt from the payment of income tax.

Yes, Nicaragua, a country located in Central America, is under sanction from the United States and the European Union. These sanctions are primarily focused on human rights concerns and democratic backsliding, targeting individuals and entities associated with the Nicaraguan government.

The minimum capital required to register a company in Nicaragua is around US$1 or its equivalent in other currencies. However, it is common for companies to have a higher initial capital contribution, often around C$10,000 (approximately US$320).

Nicaragua offers an array of opportunities for investors, from the food processing industry to the automobile industry. Moreover, investments in the traditional agriculture and cattle-farming industry of Nicaragua fundamentally contributed to the part of country’s export for more than 150 years.

The authority responsible for corporate registration in Nicaragua is the Registro Público de la Propiedad y del Comercio, i.e., Public Registry of Property and Commerce, under the Ministry of Development, Industry, and Trade.

The type of incentives that exist to create a company in Nicaragua are mentioned below-

  • Tax exemptions for new businesses in the first 5 years of their operation
  • Establish free zones offering tax incentives and other benefits to companies established
  • Government to offer Guarantee Fund to support companies’ access to credit
  • Offer training programs and technical assistance for improving companies’ productivity and competitiveness

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