1. Can I incorporate a company with only foreign people?
A Nicaraguan company can be incorporated with foreign partners and without national partners. However, if the company does not have Nicaraguan or foreign partners with legal residence in Nicaragua, it is necessary to have a Nicaraguan representative or resident foreigner to represent the company before government bodies. This is achieved through a Special Power of Attorney.
2. Can I register a branch of my foreign company in Nicaragua?
Yes, the foreign company must agree through its corresponding corporate body (Board of Directors or Members’ Assembly) to open a branch in Nicaragua. Branches of foreign companies have the same rights and obligations as Nicaraguan companies and must pay taxes in Nicaragua on income of Nicaraguan origin.
3. Can I repatriate funds without problems?
In Nicaragua there is no exchange restriction, nor any restriction to repatriate funds to the country of origin. Companies can have accounts in Nicaragua in national currency (Cordoba), in US dollars and in euros.
4. How much is the income tax of a company in Nicaragua?
Income from economic activities is taxed with a 30% tax on the profits generated. Other income has lower tax rates. There is also a Municipal Income Tax of 1% on gross income that is paid to the municipality where that income is generated.
5. How much is the minimum capital to start a company in Nicaragua?
There is no minimum capital to incorporate a company. Our firm recommends an initial capital of C$ 100,000.00 or more. It is not a requirement that this capital be deposited in an account to start operations.
6. How long does it take to create a company in Nicaragua?
Depending on which department or province the company registers, it can be between 15 and 60 days.