Business entities in Nicaragua in 2023

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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

Also known as:SASucursal
How long to set the company up?2 weeks4 weeks
How long to open company bank account?4 weeks6 weeks
Legal liability?LimitedLimited
Wholly foreign owned?YesYes
Minimum paid - up share capital?US$1US$1
File annual tax return?YesYes
Tax registration certificate required?YesYes
Recommended corporate bank account?CitibankBanpro
Does our Client need to travel?NoNo
Resident director required?NoNo
Resident shareholder required?NoNo
Minimum directors allowed?11
Minimum shareholders?21
Tax identification code needed?YesYes
Nicaragua resident representative required?YesYes
Corporate shareholders allowed?YesYes
Corporate director(s) allowed?YesYes
Statutory audit required?YesYes
Nicaragua corporate tax rate?30%30%
Annual financial statements required?YesYes
Regulated by?Ministry of Development, Industry and TradeMinistry of Development, Industry and Trade
Allowed to issue sales invoices?YesYes
Allowed to sign contracts?YesYes
Allowed to import and export goods?YesYes
Can rent an office space in Nicaragua?YesYes
Can buy Nicaragua property?YesYes
Total Nicaragua business setup costs in yr. 1?US$15,750US$16,850
Subsequent annual costs (incl. accounting and tax fee)?US$6,300US$5,500
Sample engagement invoice?View invoice PDFView 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
  • Sales & Business Development Manager
  • Contact me!
Pronicaragua MIFIC CZF Central bank DGI