Sign the incorporation papers before a notary public
Agency: Public Notary
The documents of incorporation and the company bylaws must be drafted by a notary public. It is customary to include the company bylaws in the document of incorporation. Most notaries will also perform the remaining steps (explained in the following steps) in the incorporation process, for a fee of USD 200 (on average). The notary cost is in between USD 750 – 1,000.
Time and cost: 3 days, USD 875
Buy the company’s accounting and corporate books
Agency: Bookstore
According to Article 28 of the Commercial Code, all companies must keep four corporate books: two accounting books (diary and ledger) and two corporate books (minute book and share book). The cost of the books may vary from one bookstore to another.
Time and cost: 1 day, NIO 800
File the company’s deeds (acta constitutiva), register the accounting books (sellado de libros) and register as a trader (inscripción como comerciante)
Agency: Representation of the Commercial Registry at the one-stop shop (Ventanilla Única de Inversiones – VUI)
In February of 2014, the Public Registry of Nicaragua approved a resolution in allowing entrepreneurs to file the incorporation statutes, to register the accounting books and the inscription as a trader at the same time at the one-stop shop.
The cost for commercial registration is 1% of capital (with a minimum of NIO 1,000, maximum of NIO 30,000) and the following fees apply:
- Inscription of constitution of internal books: NIO 100.
- Registration fee for books (diario, mayor, actas y acciones) NIO 350.00.
- Registration as a trader (inscripcion como comerciante): NIO 300.
- Form for municipal license (matricula): NIO 5.
- Municipal license: for social capital lower than NIO 50,000 is NIO 500; higher than NIO 50,000 is 1% of capital.
- Municipal license document (constancia de matricula): 1% of license fee.
The payment must be made in Banpro or Banco de Finanzas, and the payment receipt must be presented at the one-stop shop. Regardless whether the company has income, it must declare before the Nicaraguan Tax Authority (Dirección General de Impuestos) each month. If the company has no sales, it will not pay any taxes. However, it will have to pay the fees for the services performed by their representative in Nicaragua before the DGI.
Time and cost: 1 week, NIO 350 (registration of accounting books) + NIO 300 (application as a trader)
Pay the inscription fees
Agency: Commercial Bank
Fees must be paid into any bank and the receipt presented to the one-stop shop (see Procedure 5). There is a commercial bank within the Commercial Registry where the payment can be made.
Time: 1 day (simultaneous with previous procedure)
Cost: 1% of capital (Commercial Registration) within a minimum of NIO 1,000 and a maximum of NIO 30,000 + NIO 100 (inscription of internal books)
File the Single Document (DUR – Documento Único de Registro) to obtain registration with Tax Authorities (RUC), social security (INSS), and the pre-municipal license (pre-matrícula)
Agency: Representation of DUR (Documento Único de Registro) at the one-stop shop (VUI) or the Tax Authorities (Dirección General de Ingresos – DGI)
Companies must obtain the Single Registration Document or DUR (Documento Único de Registro), a document that allows to register at the same time for sales tax (Registro Unico de Contribuyentes – RUC), pre-registration at social security (INSS), and the pre-municipal license (pre-matrícula) at the one-stop shop or at the DGI (Dirección General de Ingresos). In addition, the payment of the pre-municipal license is now made at the one-stop shop with the same document.
Time and cost: 1 day, 1% of capital (municipal license fee) + 1% of municipal license fee (municipal license document)+ NIO 5 (form for municipal license)
Obtain a municipal license (matrícula)
Agency: Representation of the Municipality (Alcaldia de Managua) at the one-stop shop (Ventanilla Única de Inversiones – VUI)
After obtaining the pre-municipal license with the application of DUR, entrepreneurs must go to the delegation of the Municipality (Alcaldía) at the one-stop shop to obtain the official license (matrícula).
Time and cost: 1 day, no charge
Obtain a Social Security certificate and register the company’s employees
Agency: Social Security Institute (INSS – Instituto Nicaraguense de Seguridad Social)
Business founders previously obtain an Employer’s number (número patronal) through the Single Document or DUR (Documento Unico de Registro). Then, an Employer’s Certificate (certificado patronal) must be requested at the Social Security Institute (INSS – Instituto Nicaraguense de Seguridad Social). This visit is to obtain an activation procedure of the pre-obtained registration at INSS, and to activate the registration the company must have at least one employee. The employee needs to fill a form and with a copy of the employee’s ID the employer can request employee’s registration. At the same time, the company can request access to the online declaration service. INSS usually gives a training to use the system, which is set up a couple of days after the registration of the employee is requested.
Time and cost: 1 day (simultaneous with previous procedure), no charge
