How to start a business in Nicaragua as a foreigner (2026)
Starting a business in Nicaragua as a foreigner: moderate.
Nicaragua permits 100% foreign ownership across virtually all sectors and grants foreign investors national (equal) treatment, profit/capital repatriation rights and property protection under Law No. 1240 (2025). Company formation is centralized through the VUI one-stop shop, but it still requires a notarized deed, at least two shareholders, a locally-resident legal representative, and several sequential registrations, making the full process moderately involved (typically a few weeks rather than days).
Legal framework
Foreign Investment Law No. 1240 (in force 24 May 2025, replacing Law No. 344) administered by MIFIC; company incorporation under the Commercial Code via the Investment One-Stop Shop (Ventanilla Única de Inversiones, VUI), with registration at the Public Mercantile Registry (CSJ), the Tax Directorate (DGI) and the municipality.
Key points: starting a business in Nicaragua
Foreign ownership: fully open
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.
Entity type and minimum capital
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.
Resident legal representative + notarized deed
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.
One-stop shop (VUI) consolidates registrations
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).
Steps and timeline
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.
Optional foreign-investor registration
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.
Sources
- pronicaragua.gob.ni/es/establecimiento/
- pronicaragua.gob.ni/es/el-proceso-de-inversion/201-como-incorporar-una-empresa/
- pronicaragua.gob.ni/es/noticias/2730-ventanilla-unica-una-sola-parada-para-invertir/
- vui.mific.gob.ni/
- vui.mific.gob.ni/TRAMITES/Inscripciones-en-el-Registro-P%C3%BAblico-Mercantil
- consortiumlegal.com/2025/06/18/ley-n-1240-ley-de-inversiones-extranjeras-y-su-reglamento-
- bizlatinhub.com/company-formation-incorporation-in-nicaragua-a-six-step-guide/
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