DOING BUSINESS IN NICARAGUA

Investement Framework

Business Climate
Financial and Fiscal System
Commercial entities
Investors Rights and Investment Laws
Trade Agreements

Business Climate

The World Bank conducted a study in the year 2OO5, reporting that Nicaragua was one of the destinations in the world in which the opening of a new business only took 8 steps, whereas the average for the Central American region takes 11.40 steps. The quantified number of days it takes to establish a company in Nicaragua is 42 days, whereas the regional average is 63 days. In conclusion, in the area, Nicaragua is rated as one of the best and fastest countries to open a new business.

Steps to open a business

1. Registration of real estate property and commercial ownership:

• Registration of commercial entities (company or corporations)
• Registration of business owners and buying a stamp to seal accounting books (natural persons and juridical entities)
• Power of attorney for merchants

2. Ministry for Development, Industry, and Trade:

• Registry to keep statistical information on foreign investments

3. Internal Revenue Service:

• Issues Registry for Individual Taxpayers (RUC for its acronym in Spanish)
• Registration as a taxpayer, and granting the inscription certificate
• Opening of obligations, issuance of certificate of responsibility

4. Managua City Hall:

• Starting activities
• Municipal solvency
• Certificate of registration
  
  

Once these registrations have been completed, you should:

• Grant power of administration to your legal representative. The procedure should be to present the power of administration on a legal instrument (a photocopy of it certified by an authorized notary). In the case of being a foreigner with a N° 1-Condition Residency, you must present your residency card.
  
• Register in the Office for General Customs Services (DGA for its acronym in Spanish) and in the Registry System for Direct Importers, if you are going to import. In order to receive the National Importer Registry (RNI for its acronym in Spanish), you have to wait until the Internal Revenue Service (DGI for its acronym in Spanish) provides you the accounting ledger and journal.

Once you have concluded these steps, you will register yourself in the corresponding sector law, depending on the nature of your business or company.

Simplified Procedures

a. One- Stop Office for Investors (Ventanilla Unica de Inversión, MIFIC*)

This office provides service to national and foreign investors to complete the required and basic transactions needed to open a business in a fast, economical, and centralized approach.

The major benefit of the VUI office is that it has been delegated functions of public institutions involved in the creation of a business, such as the Merchant Public Registry, the Foreign Investment Statistical Registry of the Ministry for Development, Industry and Trade;
Managua City Hall, and the Internal Revenue Service.

*Note: MIFIC is the Ministry for Development, Industry and Trade

For more information, visit website:
www.mific.gob.n/vui

b. One-Stop Office for Construction Procedures (Ventanilla Unica de la Construcción)

This office simplifies, speeds up and centralizes procedures related to construction, in conformity with the law. Additional information is available at Managua City Hall.

c. One- Stop Office for Exports Procedures (Ventanilla Unica para Exportar)

This office simplifies, speeds up and centralizes procedures related to exports, in conformity  with applicable laws, requirements and regulations of the destination country (Center for Exports Procedures - CETREX).

The law establishes self-service for imports, exports and other regimes, Law 265, published in La Gaceta nº 17 dated January 24, 2001. Regulations Decree n.º 3-98, La Gaceta nº31, dated February 16, 1998.

e. INTUR Information Service Center

The information Services Center was created to give better services to investors and the general public by facilitating procedures related to tourism projects within the framework of Law 306. The CAP office also assists foreigners in the registration process of companies in the National Tourism Registry, 3n with the application of the residency, among other services.

The CAP office concentrates on the above-mentioned procedures in a one-stop office – located in the office of INTUR in Managua- to respond to requests.