Investment Registration Process for residency purpose

By: Indira Mayorga Prado.

Prior to the residence application, the INVESTMENT CERTIFICATE must be processed in the name of the company or the individual registered as a merchant before the Ministry of Development, Industry and Commerce (MIFIC), this can take approximately from 4 to 8 weeks. In this process, the following documentation must be submitted:

  1. Identification and police record (issued in the country of origin translated into Spanish through Public Deed (if applicable) or issued by INTERPOL in Managua) of the shareholder/investor and their relatives who pretend to acquire residency as an investor (minors under 18 years of age should not submit police record).
  2. Corporate documentation of the company in the name of whom the business is registered such as: Articles of Association and Bylaws, Registration as a Merchant, Public Deed of transfer of shares (if any), Public Deed of Modification to the Articles of Association (if any); Power of Attorney and identification of the legal representative; Certificate of Final Beneficiary, RUC number, Certificate/Modification of economic activity, Municipal License in the municipality where the business is operating, Fiscal solvency, operating licenses depending on the economic activity to which the business is dedicated.
  3. If the investment is registered in the name of an individual, the documents to submit are: Registration as a merchant, RUC number, Certificate/Modification of economic activity, Municipal license in the municipality where the business is operating, Fiscal solvency, licenses of operation depending on the economic activity to which the business is dedicated.
  4. Documents that support the minimum investment of US$ 30,000.00, these may be: Public Deeds of real estate, purchase of intangible rights, lease contracts, purchase of machinery, supplies, office equipment, payment of professional services, among others. If the investment is greater than US$60,000.00, an investment certificate signed and sealed by an certified Public Accountant must be presented.
  5. Investment registration form, investment plan and application letter.

Once the documentation is received, the authorities proceed to the review and will schedule an inspection visit to the business, where the investor must be present.

If the documentation presented is consistent with the results of the business inspection, the authorities will issue the investment certificate, notifying the Immigration authorities of the investment registration and informing about the people who will apply as investors.

If documents or information is missing, the authorities will notify and grant a period of 30 days for their presentation; otherwise, the request is rejected and must be made again. Exceptionally, the institution may extend this period by an additional 30 days.

As long as the non-resident foreigner does not obtain a decision on the resolution granting residency, he/she must request the “extension of stay.” Failure to complete this request entails the payment of daily fines for irregular stay.

The granting or denial of the residence request is a sovereign act of the State of Nicaragua, this means that the denial resolution is provided without further justifications. Therefore, all requirements must be met in a timely manner and provide the correct information required to maximize the possibility of a positive response. To achieve this objective, receiving legal advice from a person with experience in the immigration field is key.