Through Circular No. 008-2021 issued by the National Directorate of Registries, as of April 19, 2021, the Registry of the Ultimate Beneficial Owners (UBO) of companies in Nicaragua began to operate.

Corporations must update their basic and beneficial owner information by filling out a form as follows:

• Ordinary: Every 12 calendar months, stating whether or not there are changes or amendments to their basic information and UBO.
• Extraordinary: When there is any change that modifies or amends their Articles of Incorporation or bylaws that affects their basic information and the identification of their UBO.

The declaration and updating process will be carried out in alphabetical order according to the initial letter of the Company's Corporate Name, and the two cycles detailed below:

Finally, in case of non-compliance with the obligation to declare the Ultimate Beneficial Owners, economic and administrative sanctions could apply, which would prohibit the registration of documents before the Public Registry and even the filing of lawsuits.

If you have any questions or would like more information on this matter, please do not hesitate to contact us.