By: Ana Carolina Barquero
- Who represents a mercantile entity in Nicaragua?
Nicaraguan legislation establishes that the legal representation of an entity will be held by the Board of Directors president, however, in practice, because of its domicile and nationality, this responsibility can also be granted to a third person.
- Which requirements are necessary to hold a legal company representation?
The main requirements are based on its nationality, which for representation purposes before the General Directorate of Income (DGI) and the Managua Mayor’s Office, it is mandatory that the same be held by a national or in case of being a foreigner, it must be a resident foreigner.
Delimiting then that they are indispensable requirements:
- Nationals, identified with Nicaraguan Citizen Identity Card, according to the established in the literal f) of article 4, of the Law Nº 152 Law of Citizen Identification.
- Foreign residents, identified with a Passport issued by the competent authority of their country of nationality, and a permanent residence card condition 1 (to work).
- How to change and/or update the legal mercantile entity agent?
The Nicaraguan legislation sets that such change must be managed, submitting the revocation of the General Power of Administration and the new enabling document in favor of the new Attorney-in-Fact/Legal Representative before the General Directorate of Revenue (DGI), both documents duly registered in the Mercantile Registry does not operate the change of representative showing only the revocation.
For more information about this and other legal issues, please contact LatinAlliance Nicaragua, Attorneys and Notaries, at the following email address: abarquero@latinalliance.co