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NiNicaragua Subsidiary.






Country Capital



Córdoba (NIO)

Setting up a Nicaragua subsidiary is the first necessary step of an expansion without a global PEO. Your subsidiary will allow you to operate legally in Nicaragua and help you hire employees, set up your payroll, and more. But you won’t start to realize these benefits until after the months it takes to incorporate.

G-P will help you expand without your own entity using our existing subsidiary in Nicaragua. You can use our Nicaragua PEO to hire employees that we’ll onboard, handle payroll using our compliant solution, and more. Plus, we’ll act as the Employer of Record to make sure you stay compliant.

How to Set Up a Nicaragua Subsidiary

Setting up a Nicaragua subsidiary requires a significant amount of planning before you start the process. First, you have to find the right location within Nicaragua that’s most friendly to foreign investment. Different regions or cities can have their own Nicaragua subsidiary laws that will impact how to set up your Nicaragua subsidiary. If you’re not sure which location is best for your subsidiary, we recommend working with a lawyer, consultant, or accountant who can help.

Next, you should focus on choosing the right entity. When you set up your Nicaragua subsidiary, you can choose between a variety of subsidiary structures, such as a corporation or branch. It’s important to choose one that meets your business goals, as your entity details what actions you can perform in the country. Many companies choose to incorporate as a corporation because you can work almost like a resident company.

Setting up your Nicaragua subsidiary as an LLC includes the following steps:

  • Drafting acts of incorporation
  • Acquiring accounting and corporate books at a local bookstore
  • Submitting acts of incorporation at the VUI
  • Registering as a trader
  • Registering accounting books
  • Obtaining a single registration document and submitting at the VUI
  • Obtaining a foreign investor certificate, if applicable

Nicaragua Subsidiary Laws

Nicaragua’s subsidiary laws dictate everything you need to make sure your corporation stays compliant. You’ll need one director, two shareholders, and an auditor for the Nicaragua subsidiary setup process. The Ministry of Development, Industry, and Trade regulates all corporations in the country and will require you to complete all transactions in person. You’ll also need a tax identification code before you officially start working.

All companies, whether they’re a corporation or branch, need a commercial bank account that takes about four to six weeks to establish. Keep in mind that you’ll also need at least 10,000 Nicaraguan córdobas, or about $300. The process will require your corporation to appoint a legal representative with Nicaraguan residency to draft an act of incorporation.

Benefits of Setting Up a Nicaragua Subsidiary

Finally setting up your Nicaragua subsidiary means you can start hiring employees, paying them, and getting to work. Choosing to incorporate as a corporation can provide even more benefits if you limit shareholders’ liability to what they contribute. This setup will keep your parent company safe from any litigation or other issues from the subsidiary, and the subsidiary can choose its own company culture and working environment.

Using Nicaragua subsidiary outsourcing with G-P will save you time and stress. You won’t have to set up your own subsidiary when you work with us — you can use our Nicaragua PEO instead. We’ll hire employees to work on your behalf and make sure your company meets all of Nicaragua’s subsidiary laws. With our help, you can focus on running your business instead of worrying about your expansion.

Other Important Considerations

If you don’t work with a global PEO, you’ll need to hire a compliance expert who can make sure you won’t face any fines or delays. If no one in your company is an expert in Nicaragua’s subsidiary laws, we recommend hiring a consultant or a lawyer who has helped other companies expand.

You’ll also need the time and money to travel back and forth to Nicaragua frequently. Since the company requires for all transactions to happen in-person, you need to free your schedule to travel to the country through several steps of the process. You should also work with your accounting department to make sure your company has the money for all this travel.

Let G-P Help With Your Expansion

When you choose G-P, you’re choosing an easier and faster expansion. Contact us today to learn more about Nicaragua subsidiary outsourcing.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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