By: Lic. Ana Carolina Barquero
This August 16, 2022, Law 1127 of Reform to Law No. 1115 General Law of Regulation and Control of Non-Profit Organizations of the Republic of Nicaragua, came into force as of its publication in La Gaceta number 152, through of which the object of said law is reformed, definitions are added, new powers are granted to the Ministry of the Interior as well as new classifications of non-profit organizations, which can be known as NPOs; and adds two more chapters, referring to Sports NPOs, Physical Education and Physical Recreation.
The new Law 1127 establishes a new applicable legal framework for the constitution, authorization, regulation, operation, dissolution, liquidation and cancellation of NPOs, nationals and other nationalities that carry out their activity in national territory. As well as establishing new definitions such as: Sports, Physical Education and Physical Recreation Associations, Business Union Entities, Chamber, Business Chamber of Special Organization, Mixed Chamber.
Likewise, it grants new powers to the Ministry of the Interior, which will be in charge of granting and canceling legal personality to NPOs and submitting to the Presidency of the Republic and the National Assembly of the Republic of Nicaragua, the annual report that contains the details of the granting of legal entities and the registration of NPOs such as their dissolution and cancellation. And additionally, it authorizes that any change of name and reform of its objectives and purposes be carried out by means of a general assembly that must be consistent with them.
In relation to the classification of NPOs, the following are added: a) Social, Cultural and Educational; b) Sports of Physical Education and Physical Recreation; c) Business associations.
Said law also establishes a new day for the Business Guild Chambers, establishing October 12 of each year as “Day of the Business Guild Chambers, federations and confederations of Nicaragua.”
For more information on this and other legal issues, contact LatinAlliance Nicaragua, Lawyers and Notaries, at the following email address: abarquero@latinalliance.co