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Associations in Nicaragua

The economic requirements of the global environment in which we now live have imposed upon commerce the need to form mercantile associations.

The Commercial Code, supplementary law and regulations govern the conduct and dealings of the enterprise. The Nicaraguan Code of Commerce recognizes five different types of business entities: known, in Spanish under the names of:

a. Sociedad en nombre colectivo

b. Sociedad en nombre colectivo de Responsabilidad Limitada (SRL/LLC)

c. Sociedad en comandita simple

d. Sociedad Anónima (S.A./Corporation)

e. Sociedad en comandita por acciones

The most important example of such associations is the corporation: born of a multilateral contract bound by a common purpose and presenting significant advantages; such as limited liability and easy transferability of shares. Incorporated companies, partnerships, individuals and branches of foreign enterprises may conduct business in Nicaragua. In all cases, the pertinent information is filed in the Public Registry.

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