HOW TO BECOME A CERTIFIED STATE SUPPLIER IN NICARAGUA? EVERYTHING YOU NEED TO KNOW TO PARTICIPATE IN PUBLIC PROCUREMENT

HOW TO BECOME A CERTIFIED STATE SUPPLIER IN NICARAGUA? EVERYTHING YOU NEED TO KNOW TO PARTICIPATE IN PUBLIC PROCUREMENT

News / Thu, 04/10/2025 - 11:08

Author
Luis Manuel Canales
CEO & Director of Cala Lawyers

In Nicaragua, Law No. 1238, or the “Law on Administrative Procurement by the State,” published in La Gaceta No. 35 on Friday, February 21, 2025, establishes the fundamental procedures that allow both legal entities (companies) and natural persons to participate in public procurement processes. One of the main requirements to access high-value bidding processes is obtaining the State Supplier Certificate.

This Certificate not only ensures that your company—or you as an individual—comply with the legal and tax regulations, but also allows you to access significant business opportunities with the State. However, the certification process is still pending the publication of its Regulations, creating uncertainty regarding some specific details and procedures.

In this article, we explore the key aspects of how to obtain the State Supplier Certificate, the legal requirements, the types of procurements that require the Certificate, and the crucial role played by the State Supplier Verification Commission, which is located within the National Assembly.

What Is the State Supplier Certificate?

The State Supplier Certificate is an official document that certifies that a legal entity or a natural person is authorized to participate in public procurement processes, specifically those exceeding certain amounts as established by law.

Required Thresholds for Obtaining the Certificate:

The need to obtain the Certificate depends on the type of bidding process. Public procurements are divided into three categories:

  1. Public Bidding: Contracts exceeding C$10,000,000.00 (Ten Million Córdobas).
  2. Selective Bidding: Contracts between C$2,000,001.00 (Two Million and One Córdobas) and C$10,000,000.00 (Ten Million Córdobas).
  3. Minor Contracting: Contracts not exceeding C$2,000,000.00 (Two Million Córdobas), for which the Certificate is not mandatory.

Who Can Obtain the Certificate?

The State Supplier Certificate is available not only to companies (legal entities), but also to natural persons. This means both individual entrepreneurs and companies may participate in public bidding processes, as long as they meet the established requirements.

Process to Obtain the State Supplier Certificate

To obtain the Certificate, the following key steps must be followed:

  1. Register as a State Supplier: The first step is registering in the State Supplier System before the State Supplier Verification Commission.
  2. Required Documentation: Various documents must be submitted, including:
  • Certification of tax compliance (Tax Clearance).
  • Proof of compliance with labor and social security laws.
  • Financial solvency certificate.
  • Registration with the corresponding Municipal Government (Annual Business License).
  • Certificates of prior experience.
  1. Formal Application for the Certificate: Once the documentation is complete, a formal request must be submitted to the State Supplier Verification Commission.

The Commission is responsible for verifying that suppliers comply with all legal requirements before issuing the Certificate. It conducts physical inspections of suppliers’ facilities to ensure companies meet operational, technical, and legal standards.

The offices of this Commission are located in the National Assembly.

Regulation Still Pending

It is important to note that the Regulations to Law No. 1238, as of this date, are still pending enactment. These Regulations are crucial, as they will define more clearly the specific procedures and additional technical requirements needed to obtain the State Supplier Certificate. The absence of the Regulations may create some uncertainty, but the basic certification process continues in accordance with the provisions of the law.

Advantages of Obtaining the State Supplier Certificate

Obtaining the Certificate is not only a legal requirement—it also opens the door to new commercial opportunities:

  • Access to high-value contracts: Participate in public tenders above C$10,000,000.00.
  • Increased competitiveness: The Certificate demonstrates that you meet all legal requirements, enhancing your reputation before the State and potential business partners.
  • Legal certainty: Contracts with the State are subject to a clear legal framework, providing greater security in the execution of the contract.

Tips for Obtaining the Certificate

If you are interested in becoming a Certified State Supplier, we recommend following these tips:

  1. Keep your documentation up to date: Ensure all legal, tax, and labor requirements are current, including your Municipal License.
  2. Prepare your facilities for inspection: If your company relies on specific infrastructure, be ready for the Commission to inspect your premises.
  3. Consult with legal experts: Since the certification process can be complex, it is advisable to consult attorneys specialized in public procurement to ensure full compliance with all requirements.

Becoming a Certified State Supplier is an essential step to accessing public procurement opportunities offered by the Nicaraguan State. Although the Regulations to Law No. 1238 are still pending and will define some specific procedural details, the path toward certification remains clear and accessible for all interested natural and legal persons.

At CALA LAWYERS, we have the experience and knowledge necessary to guide you through the entire certification process. If you would like more information or need assistance, do not hesitate to contact us.