Business entities in Nicaragua in 2024

Nicaragua is one of the poorest countries in Central America. It however consists of a free-market economy with an abundance of natural resources including coffee, beachfront real estate, lakes and minerals. Healy Consultants will assist our Clients with incorporating the optimal corporate structure. There are several ways of doing business in Nicaragua, the most common being the setting up of a corporation. Foreign entrepreneurs may also opt to set up a joint stock company, a branch office or a representative office.

The Nicaragua Corporation (Sociedad Anónima – SA)

• The Nicaragua Corporation is the most commonly used type of business entity by entrepreneurs. A corporation must appoint at least 1 director and 2 shareholder who can be of any nationality. The minimum paid-up share capital required to complete the incorporation process is US$1;
• The corporation must appoint an auditor and must submit audited financial reports annually.

The Nicaragua branch (Sucrusal)

A Nicaragua branch office can be established by a foreign company. The parent company will be responsible for this entity and all its operations. A legal representative who is a resident of Nicaragua must be appointed by this entity.

Table of comparison between Nicaragua entities