Nicaragua

Ease of Doing Business in

Nicaragua

This page shows summary Doing Business 2012 data for Nicaragua. The first table lists the overall "Ease of Doing Business" rank (out of 183 economies) and the rankings by each topic. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region Latin America & Caribbean
Income Category Lower middle income
Population 5,822,265
GNI Per Capita (US$) 1,080.00
Doing Business 2012 Rank Doing Business 2011 Rank Change in Rank
118 122 down 4
Topic Rankings DB 2012 Rank DB 2011 Rank Change in Rank
Starting a Business 130 121 up -9
Dealing with Construction Permits 150 146 up -4
Getting Electricity 136 133 up -3
Registering Property 122 151 up 29
Getting Credit 98 96 up -2
Protecting Investors 97 93 up -4
Paying Taxes 155 158 up 3
Trading Across Borders 83 85 up 2
Enforcing Contracts 52 82 up 30
Resolving Insolvency 78 80 up 2

Economy Profile

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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 2012 Rank 130 DB 2011 Rank 121 Change in Rank down-9
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).

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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.

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Time (days)
39 54 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.

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Cost (% of income per capita)
107.9 37.3 4.7

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.

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Paid-in Min. Capital (% of income per capita)
0.0 4.3 14.1
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) and register company books at the local tax authority (Administración de Renta); 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.

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