World Bank ranks Nicaragua as the fastest country to start a business in Central America

Jan. 19, 2010 - PRLog -- Nicaragua was recently ranked as the fastest country in which to start a business in Central America according to the Doing Business Report 2010 by the World Bank Group. The indicators analyzed in this report for this category measure business regulation and the protection of property rights—and their effect on businesses, especially small and medium-size domestic firms. The study placed Nicaragua in the number one position within the Central American region, followed by El Salvador and Costa Rica.
   
Several actions undertaken by the Government of Nicaragua have significantly contributed in achieving this ranking, for example, Nicaragua is the only country in Central America with a One-Stop Shop for Free Zones to facilitate the process of installation, operation and external trade for companies operating under the Free Zone Regime. Additionally, the country has opened a One-Stop Shop for investments and a One-Stop Shop for exports, greatly facilitating these procedures.

The study also positioned Nicaragua as the country that best protects investors, measuring transparency of transactions (extent of disclosure index), liability for self-dealing (extent of director liability index), shareholders’ ability to sue officers and directors for misconduct (ease of shareholder suits index) and strength of investor protection index. A key factor in investor protection is the passing of the Foreign Investment Promotion Law (Law 344), which establishes a series of solid legal guarantees for foreign investors, such as: equitable treatment to foreign investors, free currency convertibility, freedom to repatriate all capital and profits, dividends or earnings generated in the national territory (after paying pertinent taxes), full international ownership, prompt and fast depreciation of capital goods, access to local funding available at banks and full protection of intellectual property rights, patents, and brands.

In addition, Nicaragua’s Mediation and Arbitration Law offers foreign investors two methods alternate to the judicial process (mediation and arbitration) to expeditiously resolve differences on property and non-property assets without detriment to the treaties, conventions, covenant or any other instrument of International Law subscribed by the country.

Furthermore, Nicaragua is a member of the International Centre for Settlement of Investment Disputes (ICSID) since 1994, an institution of the World Bank Group, which provides facilities for the conciliation and arbitration of disputes between member countries and investors who qualify as nationals of other member countries.

Overall, the Doing Business Report ranked Nicaragua 117 out of 183 countries in ease of doing business; Costa Rica is number 121 and Honduras number 141.  

For more information visit: http://www.doingbusiness.org/