Nicaragua’s economy is driven by manufacturing, services, and agriculture, with support from foreign investments.
In 2022, the country experienced a 3.8% economic growth despite rising global prices, international challenges, and the aftermath of a significant hurricane. This growth was fueled by increased consumer spending, bolstered by remittances and exports to other nations.
Understanding the process of opening a corporate bank account in Nicaragua is crucial for a successful business setup, providing financial stability and facilitating smooth international transactions.
Nicaragua, being an appealing choice for foreign investors, offers access to a variety of reputable banks. This article outlines the steps for opening a corporate bank account in Nicaragua.
See also: Corporate Bank Account in Costa Rica
Can a Foreigner Open a Bank Account in Nicaragua?
With the necessary paperwork and an initial investment, foreign individuals can open a corporate bank account in Nicaragua. If you are contemplating opening a bank account in Nicaragua, it’s essential to consult international experts who can offer expert assistance every step of the way.
What Do You Need to Open a Corporate Bank Account in Nicaragua?
To open a corporate bank account in Nicaragua, you will be required to complete a detailed application and provide the following information:
For foreign residents in Nicaragua, the required documents include:
- Nicaraguan residency cédula and passport
- Two bank reference letters
- Water or electricity bill from the current Nicaraguan address
Non-resident foreigners need to provide:
- Passport with entry stamp
- Proof of residence abroad (driver’s license, tax return file, etc.)
- Copy of the income statement from the previous year
- Two bank reference letters from their home country
- Bank statement displaying the account balance from their home country
- Two reference letters from local Nicaraguans
- Copy of the beneficiary’s passport
- A minimum deposit of 50 dollars for the new account
Additionally, some banks may require evidence of a monthly salary. If you are relocating to Nicaragua without a confirmed job, obtaining a reference from your bank in your home country can demonstrate your financial stability and serve as proof of your income source while in Nicaragua, increasing your chances of approval.
Frequently asked questions when Banking in Nicaragua
According to our experience, these are the most common questions and doubts of our Clients when Banking in Nicaragua.
No. However, you can open a bank account from abroad with the support of a local attorney or attorney-in-fact empowered by a special or general power of attorney, however, the application forms and the original Comprehensive Client Profile (PIC) must be sent to Nicaragua to complete the process.
The following documents are required to open a corporate bank account in Nicaragua.
Copy of the company’s constitution and by-laws;
Copy of the general power of attorney of the legal representative
Copy of the identity card of the legal representative.
Copy of the RUC ID
Copy of the Matricula
Bank reference letters
Copy of the passport of all the shareholders and members of the company.
An updated financial statement of the company;
Any member of the company who is authorized by the shareholders of the company can have access to the bank account.
We recommend the following banks for foreign companies: Banco de Finanzas (BDF), Lafise Bancentro.
Companies choose to open bank accounts in Nicaragua because of the economic and political stability; the ability to have the account in U.S. dollars, the national tax system and banking privacy. In addition, opening a bank account makes it easier to make timely payments to suppliers of goods and services, payment to workers and even payments to state entities both municipal and national to settle most taxes, fees or rates from anywhere in the world.
Yes, Law 561 General Law of Banks, Non-Banking Financial Institutions and Financial Groups, establishes that the information obtained by a financial entity must be kept strictly confidential and can only be provided to third parties by order of the competent judicial authority.
Choose the Right Nicaraguan Bank
Banks in Nicaragua provide customized solutions tailored to meet your company’s specific requirements, be it setting up investment accounts, accommodating flexible payment methods, or facilitating international transfers. Choosing a bank that aligns perfectly with your business needs is of utmost importance.
Here are four prominent banks in Nicaragua:
- Banco de la Produccion: The Banco de la Producción, S.A. (Banpro) was founded on November 11, 1991, to collect deposits from the public and invest them in a wide range of businesses, serving as an agent for the country’s economic development. It has over 3,504 service points spread across the country and offers a wide range of products and services.
- Banco Lafise Bancentro: The Lafise Group was founded in 1895. This Nicaraguan bank is a pioneer in conducting all international operations through the globally recognized SWIFT interbank communication network, ensuring enhanced security.
- Banco Produzcamos: Banco Produzcamos is headquartered in Managua and is well-equipped to fulfill your requirements, whether you are starting a new business or expanding your company’s footprint in Nicaragua.
- BAC Nicaragua: Founded in 1952 in Managua as Banco de América Central, BAC was the forerunner of what is now known as the BAC Credomatic Group (Spanish: Grupo BAC Credomatic). This bank is a leader in using technology to deliver a seamless banking experience for business owners in Nicaragua.
Simplify the Process with Local Professionals
Engaging with legal firms or consultants is the best way to initiate the bank account opening process. Although the process of opening a corporate bank account in Nicaragua is generally uncomplicated, specific aspects require careful attention. That’s why teaming up with a local expert is essential, guaranteeing thorough guidance every step of the way.
Biz Latin Hub Can Help You Open a Corporate Bank Account in Nicaragua
At Biz Latin Hub, we offer a comprehensive range of market entry and back-office solutions in Latin America and the Caribbean.
Our team has expertise in how to open a corporate bank account in Nicaragua, with legal services, accounting and taxation, hiring, and visa processing available.
We maintain a significant presence in the LATAM region, bolstered by robust partnerships that span the area. This extensive network equips us with many resources to facilitate international projects and expand into new markets across various countries.
Contact us today to learn more about our services and how we can help you achieve your business goals in Latin America and the Caribbean.
If this article about how to open a corporate bank account in Nicaragua interests you, check out the rest of our coverage of the region. Or read about our team and expert authors.
The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.
