Provisional Residency as businessman

Recently I found another way to obtain residency. It is as businessman or businesswoman. Immigration granted a client of mine provisional residency based on establishing a Nicaraguan Corporation (Sociedad Anonima). It was a provisional residency for one year and it can be renewed. The advantage of this approach is that someone who is going to establish business and wants to invest money in Nicaragua can obtain a provisional residency and begin the investment process, buy a property which takes several months, do the investment, open a bank account, hire some employees so on can do this as a resident before obtaining investor residency. Because they are a legal Nicaraguan resident, they will not have to re-acquire documents from their home country. That is, the documents they get for the Provisional Residency application will be used for their permanent residency. Their renewal will be with a Nicaraguan police record, so it will be easier. On the other hand this it is an option for people who are not going to invest more than thirty thousand dollars in Nicaragua as people who is working as Real Estates agents, doing business online, etc. The basic documents for the applicant will be the same: - Birth Certificate - Police Record - Health Certificate (Immigration is now accepting the health certificate from Nicaragua, Just retirees must bring it from their country) As in any other case, documents must be legalized – Authenticated or Apostille according where comes from – to read regarding legalization please check: www.nicaliving.com/node/21204 Provisional residencies are not exonerated of the “one way ticket deposit”. The applicant must submit two estimates of a one way ticket to return to his country and pay as deposit according the highest estimate. The deposit will be returned once the owner is no longer a temporary resident in Nicaragua. Requirements to Incorporate a Nicaraguan Corporation: 1. Sign the articles of Incorporation in a Public Deed with a Nicaraguan Notary, in Nicaragua 2. Register the Articles of Incorporation at the Public Registry for Commerce. 3. Registrer of the Company Books (Minutes Record, Stock Record, Journal and Ledger) at the Public Registry for Commerce. 4. Register as a Merchant at the Public Registry for Commerce. 5. Register at DGI (equivalent to IRS in the USA) 6. Register at the Municipality. 7. Issue the Stock and the register in the Stock Record Book. Minimum Information to the Articles of Incorporation: a. Full name of all the partners. (Minimum 2 business partners) b. Name of the Company. c. The Purpose of the Company – Kind of business it is going to do. d. The Initial Capital. e. The members of the Board of Directors. Those who are going to do an investment over thirty thousand dollars will be able to apply for Permanent residency (which is five years) obtained from the Ministry of Industry, Commerce and Development a certification of “Foreign Investor”. To read more regarding this status check: http://www.nicaliving.com/node/20637 Best Regards, Paul Tiffer Attorney at law ptiffer@cablenet.com.ni

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Renewal

If somebody is not going to invest more than thirty thousand dollars - for any reason - but is going to run a business, this is the solution and every year you can apply for a renewal, after the third year they will give you a five years residency.

Be aware to apply for a renewal every year is simple, you just have to prove your doing business in Nicaragua and submit the police certificate from Nicaragua. The rest of your documents will be in the file.

Regards,

Paul Tiffer

Is this true?

I read on Pro Nicaragua web site that you only need $400 dollars to start a SA....

1. Draft Act of Incorporation The drafting of an Act of Incorporation requires at least two shareholders, either individuals or corporations, and a minimum start-up capital of C$10,000 (approximately US$400). A legal representative with a Nicaraguan residency must be appointed. Additionally, the final act must be authorized and certified by a Nicaraguan public notary.

Commerce Code

The commerce code of Nicaragua it doesn´t states a minimun. Usually the minimum include it for tax reasons, however the same tax will be pay for ten thousand cordobas or one hundred housand cordobas. Over this amount the tax will be increase.

Best Regards,

Paul Tiffer

one way ticket back

Paul, does someone who invests more than $30,000 and receives the five-year Residency after getting the certificate from MIFIC have to pay the “one way ticket deposit”?

It is the one of the benefits

Foreign Investors are exonerate - declared by MIFIC - doesn't have to pay the one way ticket deposit.

As you said five years residency is another benefit.

Best Regards,

Paul Tiffer

...

Thank you Paul. This is very helpful.