Business entities in Nicaragua in 2022

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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)

Nicaragua business entity types and setup requirements

  • 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

  Corporation Branch
Also known as: SA Sucursal
How long to set the company up? 2 weeks 4 weeks
How long to open company bank account? 4 weeks 6 weeks
Legal liability? Limited Limited
Wholly foreign owned? Yes Yes
Minimum paid - up share capital? US$1 US$1
File annual tax return? Yes Yes
Tax registration certificate required? Yes Yes
Recommended corporate bank account? Citibank Banpro
Does our Client need to travel? No No
Resident director required? No No
Resident shareholder required? No No
Minimum directors allowed? 1 1
Minimum shareholders? 2 1
Tax identification code needed? Yes Yes
Nicaragua resident representative required? Yes Yes
Corporate shareholders allowed? Yes Yes
Corporate director(s) allowed? Yes Yes
Statutory audit required? Yes Yes
Nicaragua corporate tax rate? 30% 30%
Annual financial statements required? Yes Yes
Regulated by? Ministry of Development, Industry and Trade Ministry of Development, Industry and Trade
Allowed to issue sales invoices? Yes Yes
Allowed to sign contracts? Yes Yes
Allowed to import and export goods? Yes Yes
Can rent an office space in Nicaragua? Yes Yes
Can buy Nicaragua property? Yes Yes
Total Nicaragua business setup costs in yr. 1? US$15,750 US$16,850
Subsequent annual costs (incl. accounting and tax fee)? US$6,300 US$5,500
Sample engagement invoice? View invoice PDF View invoice PDF

Contact us

For additional information on our business setup services in Nicaragua, please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
  • Mr. Petar Chakarov
  • Client Engagements Manager
  • Contact me!
Pronicaragua MIFIC CZF Central bank DGI