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Shaking Up Textile Manufacturing in Free Trade Zones
By Guy José Bendaña-Guerrero & Asociados
Kaitai Nicaragua S.A. is a future free trade zone establishment that will be situated in Managua, Nicaragua. Formed through a strategic partnership between Kaitai USA and CATHAY HOME NICARAGUA, S.A., the venture is primed to commence its operations by 2024.
It will become the first company to manufacture the entire range of home textile products made from polyester, including blankets and bedspreads from renowned global brands. With an investment plan of US$100 million, the company anticipates creating 2,000 direct jobs in its initial phase.
Spanning a 100-hectare area, the factory's production capacity of 1 million units per year will be powered by state-of-the-art textile technology and certification from the International Organization for Standardization (ISO), with export destinations including the United States, Canada, and Europe.
Nicaragua's Free Trade Zone Advantage
Nicaragua's free trade zone regime has played a pivotal role in attracting this foreign investment. Notable incentives for companies within these zones include exemption from import duties on raw materials, equipment, and machinery, as well as a decade-long waiver on corporate income tax.
In 2022, the nation hosted 187 operational companies within these zones, yielding USD 2.3 million in exports.
In recent years, the Nicaragua Free Trade Zone Commission has welcomed new companies, primarily in the fields of textiles, tobacco, technology, and communications. This has been achieved through the renewal of licenses, the expansion of logistics, the reduction of bureaucracy, and the enhancement of inter-zone service efficiency.
Guy José Bendaña-Guerrero & Asociados
GUY JOSE BENDAÑA GUERRERO & ASOCIADOS has a long and prosperous tradition in the field of intellectual property (IP) in Nicaragua, with roots that go back to more than 100 years, resulting on long-term relationships with renowned clients and attorneys worldwide.
The firm has its origins in the law firm Henry Caldera & Henry Caldera-Pallais, founded in 1907 by Mr. Henry Caldera. That same year of 1907, through the efforts of Mr. Caldera, Nicaragua had its first Trademark Law. In the late 1930’s, Mr. Caldera’s oldest son, Dr. Henry Caldera-Pallais, after studying law in Nicaragua, attended the University of Michigan, where he graduated as a Registered U.S. Patent Attorney. Dr. Caldera-Pallais in 1964 was a founding member of the Interamerican Association of Intellectual Property (ASIPI), the first regional intellectual property organization in the Americas. The firm continued to grow during the administration of Dr. Franklin Caldera, son of Dr. Caldera-Pallais, who obtained his doctoral degree in law from the Universidad Centroamericana in 1973.
Since 1985 the current partners, Dr. Guy José Bendaña Guerrero and Mrs. Blanca Aragón de Bendaña, took over the management of the firm. Dr. Bendaña Guerrero, Director of the firm, has distinguished himself as one of the most respected authorities in Central America in the field of intellectual property and law in general, being the author of several books such as “Course of Industrial Property Law”, “Study of the new Laws of Industrial Property” and “New Study of Contracts “, among others. Mrs. Aragón de Bendaña has served as the firm’s general manager and, thanks to her excellent management, the firm has been in constant growth, with a highly qualified staff committed to excellence. Since 1996, partner Julián José Bendaña Aragón joined the firm, and has been standing out as one of the most recognized attorneys in the field of intellectual property.
We have adapted to the constant change of the business world, supporting our clients in finding the most appropriate legal solutions for each moment. The firm distinguishes itself by understanding the needs of its clients, offering personalized service and adding value to its activities.
Nowadays we continue to be the leading firm in Nicaragua in the area of intellectual property, and at the same time, we have been consolidating other areas of service within the civil, commercial and labor fields, as well as litigation and consulting in general. The firm is well positioned to guarantee a pragmatic service that meets the requirements of the most demanding clients.