When examining a jurisdiction in which to incorporate, the first thing to look at is the legal code. The underlying law in Nicaragua is civil law law. You will want to get some local advice as to how to best structure a company in Nicaragua. Electronic signatures are permitted.
The abbreviation NI is for Nicaragua and the most common legal entity type in Nicaragua is a Sociedad Anónima (S.A.).
The average time to incorporate is 30 days to setup a Sociedad Anónima (S.A.) in NI. The minimal capitalization, or amount you're expected to put into a bank, is 0, This means you don't have any minimum share capital. The types of consideration you can use to fund your business is most commonly USD, EUR, and any legal currency.
Yes, one is allowed to re-domicile a Sociedad Anónima (S.A.) from NI. You are usually allowed to change the jurisdiction of the company, pending certain procedures.
There must be at least This means it is not possible for you to own a Sociedad Anónima (S.A.) in Nicaragua as a sole shareholder. You must have other shareholders, they can be nominees or de facto shareholders. Corporate Shareholders are permitted, which means you can have a legal entity as a shareholder. Foreign ownership is tolerated, up to 100% of the total shareholding.
A company is only required to have 1 director on the board. Additionally, corporate directors are permitted. Directorship information is ususally not shared with the general public. There is a requirement to have annual meetings of shareholders.
A registered office is a requirement, whom the company will pay yearly, for an office which can receive any lawsuit papers on behalf of the business. A related requirement, a company secretary is also mandated by the government.
There is a legal obligation to file accounts on a yearly basis. On that note, there is oftentimes a requirement to have these accounts audited.
Thin capitalization rules are not in effect.
A corporate director is permitted, meaning this country is a good option if you are setting up a structure where you want to protect director liability.
The directors are not disclosed in the public registry of Nicaragua, MIFIC. Shareholders are not disclosed in the MIFIC.
Typically companies take 30 days to setup and there are 1 director(s) required and 2 shareholder(s) required at the time of incorporation.
Overall we think Nicaragua is a ok option and have given it a score of 34 as an IO score, using the Incorporations.IO proprietary formula.
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