DID YOU KNOW WHAT?

It is important to know the regulations on the FINAL BENEFICIARY applicable to any company doing business in Nicaragua. This information concerns you.

Who is considered the beneficial owner of a company in Nicaragua?

Company Requirements 

The regulations of the Registry of Beneficial Ownership of Commercial Companies, in its article 2 defines: "The beneficial owner of a commercial company is considered to be: 

1. La persona o personas naturales en cuyo nombre se realiza una operación
2. La persona o personas naturales que en último término tienen la propiedad o controlan a un cliente, incluyendo a la persona o personas naturales que ejercen la propiedad o control, a través de una cadena de titularidad o de otros medios de control distintos del control directo”.

About the END BENEFICIARY (BF)

• BF Registration: In order to formalize the registration and declaration of BF of any company, basic information must be previously updated in the commercial registry regarding: shareholder transfers, board of directors update, capital reforms, change of legal representative. If this information is not up to date it will not be possible to complete the BF registration.

What would be the first step that a corporation must do to declare the beneficial owner? 

Every company must have up to date, in order and completely updated information such as share transfer (current partners), current board of directors, capital reform. In cases where there is a change of legal representative. Every time there is a change of partner, directors, legal representative, it is necessary to make the update in the Public Mercantile Registry in the companies' registry; and subsequently declare and/or update the beneficial owner in the beneficial owner's registry. 

It is mandatory to present the Certificate of Registration of the Final Beneficiary:

No company may act or execute activities, execute contracts, deeds, actions before banks, private parties, governmental institutions, or others if it does not have its respective certificate of beneficial ownership registration duly updated and up to date. It must be presented before the notary public every time they attempt or require to execute public deeds of any kind. The notary must add it or attest that he/she has it in sight. Likewise, the registry traffic is paralyzed if it is not found with its registry obligations in order and duly updated. Exposing himself to fines established for non-compliance with the applicable regulations.