Starting a Business in Nicaragua

This table summarizes the procedures and costs associated with setting up a business in Nicaragua.

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Standardized company

Legal Form: Sociedad Anónima (S.A.) - Corporation
City: Managua

Registration Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Sign the incorporation papers before a notary public 3 days USD 875
2 Buy company accounting books, corporate books, and invoices from a bookstore 1 day USD 100
3 File incorporation statutes for commercial registration and apply for tax and municipal registration at the one-stop shop in Managua 30 days USD 4,676
4 Pay the inscription fees 1 day included in procedure 4
5 Register for general sales tax (Impuesto al Valor Agregado, IVA) at the local Administración de Renta; register accounting books 2 days no charge
6 Register for social security and public health with Instituto Nicaragüense de Seguridad Social (INSS) 2 days no charge

Registration Requirements Details

Procedure 1.
Sign the incorporation papers before a notary public
Time to complete:
3 days
Cost to complete:
USD 875
Name of Agency:
Comment:
The documents of incorporation and the company bylaws must be drafted by a notary public. It is customary to include the company bylaws in the document of incorporation. Most notaries will also perform the remaining steps (explained in the following steps) in the incorporation process, for a fee of USD 200 (average). The notary cost is USD 750–1,000.
Procedure 2.
Buy company accounting books, corporate books, and invoices from a bookstore
Time to complete:
1 day
Cost to complete:
USD 100
Name of Agency:
Comment:
All companies must keep four corporate books: two accounting books (diary and ledger) and two corporate books (minutes book and shares book). Invoices must meet printing legal requirements including company information. The books and initial invoices would cost approximately USD 100.
Procedure 3.
File incorporation statutes for commercial registration and apply for tax and municipal registration at the one-stop shop in Managua
Time to complete:
30 days
Cost to complete:
USD 4,676
Name of Agency:
Comment:
In January 2004, the government created in the Ministry of Commerce (Ministerio de Fomento, Industria y Comercio) a one-stop shop, the Unique Office for Investment (Ventanilla Unica de Inversiones), in which companies can file commercial and tax registrations. The one-stop shop cannot process any registrations but forwards the documentation daily to the relevant agencies. The one-stop shop provides information on four procedures and rationalizes them: (a) company registration; (b) tax registration at the Dirección General de Ingresos (DGI); (c) municipal registration; and (d) for foreign companies, the Foreign Secretary (Secretario Exterior).

The cost for commercial registration is 1% of capital (with a minimum of NIO 500, maximum of NIO 20,000) and the following fees:
- Inscription of constitution of internal books: NIO 60.
- Registration fee for books: up to 50 pages is NIO 25.00; up to 100 pages is NIO 50.00.
- Application: NIO 100.
- Registration of power of attorney (if applicable): NIO 110.
- Form for municipal license (matricula): NIO 5.
- Municipal license: for social capital lower than NIO 50,000 is NIO 500; higher than NIO 50,000 is 1% of capital.
- Municipal license document (constancia de matricula): 1% of license fee.

The payment must be made in any bank, and the payment receipt must be presented at the one-stop shop. Regardless whether the company has income, it must declare before the Nicaraguan Tax Authority (DGI) each month. If the company has no sales, it will not pay any taxes. However, it will have to pay the fees for the services performed by their representative in Nicaragua before the DGI. Fees are USD 5.

Registration with the City Hall (Alcaldia) of Managua: Regardless of whether the company has sales, it must declare before the City Hall each month. If the company has no sales it will not pay any taxes; it will pay only the fees for the services performed by their representative in Nicaragua.
Procedure 4.
Pay the inscription fees
Time to complete:
1 day
Cost to complete:
included in procedure 4
Name of Agency:
Comment:

Fees must be paid into any bank and the receipt presented to the one-stop shop (see Procedure 5).
Procedure 5.
Register for general sales tax (Impuesto al Valor Agregado, IVA) at the local Administración de Renta; register accounting books
Time to complete:
2 days
Cost to complete:
no charge
Name of Agency:
Comment:
Companies with an annual income higher than NIO 240,000 will be levied general sales tax (impuesto al valor agregado, IVA). The accounting books must be registered at the local office of the Tax Collector’s Office (Administración de Rentas).
Procedure 6.
Register for social security and public health with Instituto Nicaragüense de Seguridad Social (INSS)
Time to complete:
2 days
Cost to complete:
no charge
Name of Agency:
Comment: