Nicaragua

Ease of Doing Business in

Nicaragua

This page summarizes Doing Business 2014 data for Nicaragua. The first table lists the overall "Ease of Doing Business" rank (out of 189 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

Region Latin America & Caribbean
Income Category Lower middle income
Population 5,991,733
GNI Per Capita (US$) 1,650
City covered Managua
Doing Business 2014 Rank Doing Business 2013 Rank*** Change in Rank
124 123 down -1

Doing Business 2014 DTF** (% points) Doing Business 2013 DTF** (% points) Change in DTF** (% points)
58.47 57.47 down 1.00
Positive=Doing Business reform making it easier to do business. Negative=Doing Business reform making it more difficult to do business.
 

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 2014 Rank 123 DB 2013 Rank*** 131 Change in Rank up8
DB 2014 DTF** (% points) 72.27 DB 2013 DTF** (% points) 66.99 Change in DTF** (% points) up5.28

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

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)
7 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)
36.0 36.1 11.1

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)
77.0 33.1 3.6

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 3.6 10.4
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 Obtain the DUR (Documento Unico de Registro), a single document that allows registering at the same time for sales of taxes (RUC), social security (INSS), and the pre-municipal license (pre-matrícula) at the one-stop shop or at the DGI (Dirección General 1 day 1% of capital (municipal license fee) + 1% of municipal license fee (municipal license document)+ NIO 5 (form for municipal license)
* 7 Obtain a municipal license (matrícula) 1 day (simultaneous with previous procedure) 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 topics including Getting Electricity across all economies 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...

***Last year's rankings are adjusted: they are based on 10 topics and reflect data corrections.

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