What are the types of companies in Nicaragua?

There are various types of companies in Nicaragua. The most common among these are:

1. Joint Stock Company (Sociedad Anónima - SA): It is the most common type of company and can be established by at least two partners. Partners contribute to the company's capital and participate in the company's profits and losses. Joint stock companies can raise capital through shares.

2. Limited Liability Company (Sociedad de Responsabilidad Limitada - SRL): The liability of the company is limited to the capital invested by the partners. They can be established by at least two partners and they participate in the profits and losses of the company.

3. Collective Company (Sociedad en Nombre Colectivo - SNC): It can be established by at least two partners and the partners are partners in the management and decisions of the company. Partners have unlimited liability for the company's debts.

4. Limited Partnership (Sociedad en Comandita - SC): It can be established by at least two partners and there is a distinction between limited partners and limited partners. Limited partners participate in the profits of the company, but do not play an active role in the management of the company and have limited liability. Limited partners play an active role in the management of the company and have unlimited liability.

5. Stock Exchange Company (Sociedad Anónima Bursátil - SAB): They are publicly traded companies and their shares are traded on the stock exchange. The activities and transactions of these companies are subject to securities exchange regulations. Each of these company types offers different advantages and disadvantages and is chosen depending on the needs and preferences of the company founder. For more information on company formation, it is recommended that you seek local legal advice.



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