Starting a business in Nicaragua: foreigner's guide (2026)

Law No. 1240 guarantees foreign investors the right to invest in any area of the economy with the same rights as nationals (national treatment), full ownership of assets, free access to the foreign-exchange market, and repatriation of capital and profits. There is no general foreign-ownership cap.

The common vehicle is the Sociedad Anónima (S.A.), which requires at least two shareholders (individuals or companies) and a minimum share capital of roughly C$10,000 (about US$400); a foreigner may own 100% of the shares.

The Act/Deed of Incorporation must be authorized and certified by a Nicaraguan public notary, and the company must appoint a legal representative resident in Nicaragua—a practical hurdle for non-resident founders.

The VUI (run with the Mercantile Registry of the Supreme Court, the DGI tax authority and the municipality) handles commercial registration and issues the Single Registration Document (DUR), which bundles the municipal license, social-security (INSS) registration and the taxpayer ID (RUC).

Core steps: (1) draft and notarize the deed of incorporation; (2) buy accounting/corporate books; (3) register at the VUI/Mercantile Registry; (4) obtain the DUR (a fee of ~1% of capital applies). Registration runs about 5-8 business days (3-5 expedited), but the end-to-end process incl. notarization typically takes several weeks.

Investors above US$30,000 may register with MIFIC to obtain a Foreign Investor Certificate, useful to document the investment and support a residency application; MIFIC is the governing/promoting body for foreign investment under Law 1240.