Source-cited draft: company formation & entity choice for Nicaragua (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
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Overview of business vehicles in Nicaragua
The most common vehicle for business in Nicaragua is the Sociedad Anónima (S.A.), governed by the Commercial Code; companies register with the Registro Público Mercantil (commercial registry) and the DGI. Foreigners may fully own a Nicaraguan company.
Sociedad Anónima (S.A.)
Corporation with limited liability; the most common entity, requiring at least two shareholdersCódigo de Comercio de Nicaragua (https://www.bizlatinhub.com/business-structures-types-nicaragua/)
Other entity types
Sociedad Colectiva (general partnership), Sociedad en Comandita (limited partnership), branch of a foreign company, and sole traderCódigo de Comercio de Nicaragua (https://www.bizlatinhub.com/business-structures-types-nicaragua/)
Minimum shareholders (S.A.)
2Código de Comercio de Nicaragua (https://www.bizlatinhub.com/company-formation-incorporation-in-nicaragua-a-six-step-guide/)
Minimum share capital (S.A.)
Approx. C$10,000 (about USD 400) is commonly used; there is no strict legally mandated minimum and capital need not be deposited at incorporation NIO ((approx — confirm))Código de Comercio de Nicaragua (https://www.bizlatinhub.com/company-formation-incorporation-in-nicaragua-a-six-step-guide/)
Step 1 — Deed of incorporation
Draft and notarise the act/deed of incorporation and bylaws (escritura de constitución) before a Nicaraguan notaryCódigo de Comercio de Nicaragua (https://www.bizlatinhub.com/company-formation-incorporation-in-nicaragua-a-six-step-guide/)
Step 2 — Corporate and accounting books
Acquire and present the mandatory corporate and accounting books for registrationCódigo de Comercio de Nicaragua (https://www.bizlatinhub.com/company-formation-incorporation-in-nicaragua-a-six-step-guide/)
Step 3 — Commercial registry
Register the company and its books with the Registro Público Mercantil (commonly via the Ventanilla Única de Inversiones, VUI)Código de Comercio de Nicaragua (https://www.bizlatinhub.com/company-formation-incorporation-in-nicaragua-a-six-step-guide/)
Step 4 — Tax registration
Register with the DGI to obtain the RUC (Registro Único de Contribuyentes) and a municipal licenceLey de Concertación Tributaria (Law 822) (https://www.bizlatinhub.com/company-formation-incorporation-in-nicaragua-a-six-step-guide/)
Commercial registry fee
1% of registered capital, capped at approx. C$30,000 (about USD 1,200) NIO ((approx — confirm))Arancel del Registro Público (https://www.bizlatinhub.com/company-formation-incorporation-in-nicaragua-a-six-step-guide/)
Incorporation timeline
Approximately 4–6 weeks ((approx — confirm))Código de Comercio de Nicaragua (https://www.bizlatinhub.com/company-formation-incorporation-in-nicaragua-a-six-step-guide/)
Foreign ownership
100% foreign ownership of a Nicaraguan S.A. is permitted; a local legal representative is requiredCódigo de Comercio de Nicaragua (https://www.bizlatinhub.com/company-formation-incorporation-in-nicaragua-a-six-step-guide/)
Core annual compliance
Annual IR return, monthly IVA and IR-withholding returns, monthly INSS/INATEC filings, municipal sales tax (1% monthly) and the annual municipal registration tax (2%)Ley de Concertación Tributaria (Law 822) / Plan de Arbitrios Municipal (https://taxsummaries.pwc.com/nicaragua/corporate/other-taxes)
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