Free Trade Agreement between the Government of the People’s Republic of China and the Government of Nicaragua
| |

Free Trade Agreement between the Government of the People’s Republic of China and the Government of Nicaragua

On November 17, 2023, the full text of the National Assembly No. 8868 Decree that approves the Free Trade Agreement between the Government of the People’s Republic of China and the Government of China was published in La Gaceta, Official Gazette No. 2023. Free trade agreements, between two or more countries, revitalize their trade reducing…

Simplified joint stock companies in El Salvador
| |

Simplified joint stock companies in El Salvador

In the plenary session of December 6, 2023, the Legislative Assembly of El Salvador approved a series of new reforms to the Commercial Code to implement certain provisions with innovative elements to facilitate business in the country, boost the economy, and contribute to economic growth. All of this is achieved through the modernization of commercial…

Development of a national franchise in Nicaragua
| |

Development of a national franchise in Nicaragua

Franchises are a means of acquiring a business with a high possibility of success. Over time, it becomes an optimal way to obtain a business with the least number of possible risks and the support of a professional team. It is increasingly common to have foreign franchises in Nicaragua in our commerce, but what has…

The Franchise Agreement in Nicaragua
| |

The Franchise Agreement in Nicaragua

Have you ever wanted to own an establishment like McDonald’s, Marriott International or RE/MAX? All over the world, and the Central American region is no exception, we have these types of businesses that, in the legal context, translate into franchise contracts that establish the legal framework to start the business. Lawyers call franchises sui generis,…

Agency-representation or distribution contracts in El Salvador: a legal approach
|

Agency-representation or distribution contracts in El Salvador: a legal approach

Introduction Solid and strategic commercial relationships depend, to a great extent, on suitable contractual agreements. Among these fundamental instruments is the Agency-Representation or Distribution Agreement, which plays an important role in the promotion and marketing of goods and services in the legal context of El Salvador. In practice, consultations are received on this figure regarding…

Consortium Legal appoints new partner in Guatemala office 
| | |

Consortium Legal appoints new partner in Guatemala office 

Consortium Legal, the largest law firm in Central America continues to drive its strategy of growth and excellence in client service by announcing the appointment of Maria Fernanda Morales as Practice Partner in its Guatemala office. This promotion marks a milestone in Maria Fernanda’s professional development, and consolidates the firm’s commitment to provide the highest…

Amendment to the Operating Regulations of the Registry of Final of Commercial Companies in Nicaragua
| |

Amendment to the Operating Regulations of the Registry of Final of Commercial Companies in Nicaragua

On July 25, 2023, the Supreme Court of Justice through the National Council of Administration and Judicial Career, approved Agreement Number 577, which amends the Operating Regulations of the Registry of Final Beneficiaries of Commercial Companies in Nicaragua. This instrument established new articles and guidelines to comply with the Final Beneficiary Registry. In this partial…

Distribution agreement for foreign houses in Costa Rica
| |

Distribution agreement for foreign houses in Costa Rica

With respect to the distribution contracts of foreign houses signed in accordance with Law number 6209 and that continue after the reform of the law introduced in 2007, two questions arise. Firstly, should the indemnity be considered an acquired right and, secondly, which indemnity regime should be applied? It must be analyzed at what moment…

Contracts in Guatemala: Exploring the scope of agreements drafted in English, governed by foreign laws and jurisdictions
| | | | | | |

Contracts in Guatemala: Exploring the scope of agreements drafted in English, governed by foreign laws and jurisdictions

It is very common in Guatemala that, when entering into a contract between two local entities, the parent company of one of them is foreign and, therefore, requires that the contract be executed in another language (usually English), that it be subject to the laws of the jurisdiction of the referred parent company and subject…

General information on the payment of dividends in kind in Honduras
| |

General information on the payment of dividends in kind in Honduras

The COVID-19 pandemic has profoundly affected companies around the world, and Honduras has been no exception. In the midst of the economic and financial challenges posed by this global crisis, Honduran companies have had to seek innovative ways to adapt and maintain their financial stability. In this context, the payment of dividends in kind has…

Equity premium in Guatemala
| | | | | | | |

Equity premium in Guatemala

The topic of the equity premium has taken off in Guatemala, mainly because of the concern about how ventures can be financed, since: They do not want to be diluted. They need capital. Their venture is valued as nothing more than an income expectation. Essentially, there are two ways in which money can come into…

Notice: Issuance of Electronic Stamp Paper in Nicaragua
| |

Notice: Issuance of Electronic Stamp Paper in Nicaragua

Article 237 of Law No. 822 “Ley de Concertación Tributaria” (LCT) creates the Stamp Tax, also called ITF. This is an indirect tax levied on the consumption of certain legal acts, which are contemplated in article 240 of the referred law, with its respective applicable rate. The referred article determines the applicable rate for stamped…