Nicaragua

Ease of Doing Business in

Nicaragua

This page summarizes Doing Business 2013 data for Nicaragua. The first table lists the overall "Ease of Doing Business" rank (out of 185 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

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Economy Summary
Starting a Business
Dealing with Construction Permits
Getting Electricity
Registering Property
Getting Credit
Protecting Investors
Paying Taxes
Trading Across Borders
Enforcing Contracts
Resolving Insolvency
Region Latin America & Caribbean
Income Category Lower middle income
Population 5,869,859
GNI Per Capita (US$) 1,170
Doing Business 2013 Rank Doing Business 2012 Rank Change in Rank
119 120 down 1

Doing Business 2013 DTF** (% points) Doing Business 2012 DTF** (% points) Improvement in DTF** (% points)
57.7 57.1 down 0.6
Topic Rankings DB 2013 Rank DB 2012 Rank Change in Rank
Starting a Business 131 131 No change
Dealing with Construction Permits 154 149 up -5
Getting Electricity 129 127 up -2
Registering Property 123 123 No change
Getting Credit 104 97 up -7
Protecting Investors 100 98 up -2
Paying Taxes 158 156 up -2
Trading Across Borders 81 86 up 5
Enforcing Contracts 55 55 No change
Resolving Insolvency 80 82 up 2

Economy Profile

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Additional Data

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Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2013 Rank 131 DB 2012 Rank 131 Change in Rank 0
DB 2013 DTF** (% points) 67.8 DB 2012 DTF** (% points) 66.9 Improvement in DTF** (% points) up0.9
YearNew business densityNumber of new limited liability companies
2011 0.635,314
Indicator Nicaragua Latin America & Caribbean OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

View methodology Procedures (number)
8 9 5

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

View methodology Time (days)
39 53 12

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

View methodology Cost (% of income per capita)
100.6 33.7 4.5

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

View methodology Paid-in Min. Capital (% of income per capita)
0.0 3.7 13.3
No. Procedure Time to Complete Associated Costs
1 Sign the incorporation papers before a notary public 3 days USD 875
2 Buy company accounting books and corporate books 1 day NIO 800
3 File incorporation statutes (acta constitutiva) with the Commercial Registry (Registro Comercial) at the one-stop shop (Ventanilla Unica) 2 weeks included in procedure 4
* 4 Pay the inscription fees 1 day (simultaneous with previous procedure) 1% of capital (Commercial Registration) within a minimum of NIO 1,000 and a maximum of NIO 30,000 + NIO 100 (inscription of internal books)
5 Register accounting books (sellado de libros) and register as a trader (inscripcion como comerciante) with the Commerical Registry at the one-stop shop (Ventanilla Unica) 16 days NIO 350 (registration of accounting books) + NIO 300 (application as a trader)
6 Register for general sales tax (Impuesto al Valor Agregado, IVA) 2 days no charge
7 Obtain a municipal licence (matrícula) 1 day 1% of capital (municipal license fee) + 1% of municipal license fee (municipal license document)+ NIO 5 (form for municipal license)
8 Register for social security and public health with Instituto Nicaragüense de Seguridad Social (INSS) 2 days no charge
* Takes place simultaneously with another procedure.

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the indicators across all economies included in Doing Business since each indicator was included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

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