How to set up a Company

The process of registering a company in Nicaragua can be fast tracked by using the services provided by the Investment One-Stop Shop (VUI, for its acronym in Spanish). The office, which gathers the main government institutions involved in the process, provides top-quality services free of charge for investors, reducing the registration time to approximately 13 days.

Let us guide you through the main steps in registering a company in Nicaragua:

1. Draft Act of Incorporation
The drafting of an Act of Incorporation requires at least two shareholders, either individuals or corporations, and a minimum start-up capital of C$10,000 (approximately US$400). Additionally, the final act must be authorized and certified by a Nicaraguan public notary.

2. Buy Accounting and Corporate Books
These books are required for the registration of a company and may be acquired at local bookstores.

3. Submit documents for the Commercial Registry at VUI
The user must submit the act of incorporation and the registration as a trader at the VUI so that they are processed by the Commercial Registry. They require a payment of 1% of the company’s capital but up to a maximum of C$30,000 (approximately US$1,200). The accounting books must also be presented at this moment in order to be stamped.

4. Obtain the Single Registration Document (DUR, for its acronym in Spanish)
This document is completed and submitted at the VUI and through it the investor receives the Municipal License, the License of the Nicaraguan Social Security Institute (INSS, for its acronym in Spanish) and the Tax Payer Registration (RUC, for its acronym in Spanish) of the General Revenue Department. The DUR requires a payment of 1% of the company’s capital.

(Other fees may be applicable)

 Foreign Investor Certificate
Foreign investors with investments above US$30,000 may register at the Ministry of Development, Industry and Trade (MIFIC, for its acronym in Spanish) and obtain a Foreign Investor Certificate, which is useful when applying for the Nicaraguan residency and for validating investment in the country.

Legal Counseling
It is recommended to seek legal counsel before initiating the process of incorporating and registering a company in Nicaragua, in order to ensure that all documentation is prepared properly and to avoid inconveniences and setbacks.