Ni Company Formation

---
name: ni-company-formation
description: "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."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/ni-company-formation"
  jurisdiction: "NI"
  tax_year: "2025"
  last_updated: "2026-07-13"
---

# Nicaragua Company Formation & Entity Choice

## Entity types and incorporation

- **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 shareholders  _(Código 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 trader  _(Código de Comercio de Nicaragua (https://www.bizlatinhub.com/business-structures-types-nicaragua/))_
- **Minimum shareholders (S.A.)** — 2  _(Código 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)) 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 notary  _(Código 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 registration  _(Código 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 licence  _(Ley 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)) 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 required  _(Código 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))_

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `ni-company-formation` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/ni-company-formation. If neither is available, confirm every figure against the official source pages cited above before relying on it.