The right start
As one of the countries with the fewest steps to start a business in Central America, setting up in Nicaragua is fast and efficient. Whether you are a corporate or individual investor, here are some key processes to know as you start your investment journey in our country.
Nicaragua has one of the fastest procedures with fewest steps to open a new business in the Central American region. Since 2014, key reforms have been implemented in order to streamline processes and reduce the number of days necessary for the creation of a company.
The following are steps for opening a new business in Nicaragua:
- Draft Act of Incorporation
- Get Accounting and Corporate Books
- Submit Commercial Registry at One Stop Shop (VUI)
- Obtain the Single Registration Document (DUR)
Seeking legal counsel is recommended before starting the process. Accounting books are available in all bookstores in the country.
Foreigners in Nicaragua have the assurance of 100 percent property ownership with equal rights under the law. The Constitution of Nicaragua and the Foreign Investment Law 344 recognize the rights of foreign investors to own property and establish businesses as they wish in the country.
Before purchasing a property, a registration history must be requested to verify ownership of the property for the past 30 years.
You must follow four steps for the registration and legalization of a property:
Notary public: The parties involved appear voluntarily before the Notary Public to conclude any type of contract in which property rights are transferred or real estate sold.
Municipal authorities: Once the purchaser has the corresponding public deed, he/she has to appear before the Physical Cadastral Office. General Directorate of Revenues and Ministry of Treasury: This can be done simultaneously with the procedures required by the municipal authorities, as it implies the Real Estate Tax (IBI) payment, which represents 1 percent of the estimated total value of the property after the obligatory inspection and appraisal.
Property registry: Depending on the history of title to the property and if necessary, the owner must additionally submit the “Certification of No Objection” given by the Attorney General’s Office, which certifies that there are no irregularities affecting the property. This document is a requirement to register the property under the buyer’s name, mainly for properties affected by the agrarian reform.
Visas & immigration
Nicaragua offers an excellent advantage to investors who wish to opt for a temporary or permanent visa. Applications must be submitted to the General Directorate of Migration and Aliens if the foreigner is in Nicaragua. Otherwise, the request must be submitted to the Nicaraguan Consular Service offices.
It is important to note that all of the following documents must be presented in Spanish.
- Original passport, valid for at least 6 months
- Two up-to-date passport-size photographs
- Birth certificate or naturalization, as applicable
- Health Certificate
- Police Record Certificate
- Marriage Certificate (if the spouse is also applying for Nicaraguan residency)
- A deposit equal to return airfare to country of origin
In order for your application to be processed, all required documents must be submitted.