Company Registration in El Salvador

Name of service Bronze Silver Gold Platinum
Company name verification and reservation in Department of Registrar of Companies Verifying the availability and reserving of your preferred company name in the registry
Company registration in form of LTD (Goverment fees not included) Preparation and submission of all required documents and fees to the relevant government authorities for company registration, ensuring a streamlined process for our clients
Certificate of Incorporation This document confirms the company's registration with the Department of Registrar of Companies and Official Receiver in El Salvador. It includes details such as the company name, registration number, date of incorporation, registered address, and legal form
Memorandum and Articles of Association The Memorandum and Articles of Association outline the company's constitution and internal regulations. They include details about the company's name, registered office address, objects and powers, share capital, shareholders' rights and obligations, management structure, and other important provisions
Register of Directors and Secretaries The Register of Directors and Secretaries records the company's directors and company secretary, including their names, addresses, dates of appointment, and any changes in positions
Assistance with a VAT number obtainment Assistance in obtaining a VAT number for your company
Obtaining Salvadoran Taxpayer Identification Number Card (NIT) of the company and up to 4 of its shareholders Salvadoran Taxpayer Identification Card (NIT), for each shareholder. (In order to incorporate the company, in accordance to Salvadoran Law, at least two shareholders are mandatory, either persons or legal entities)
Local secretary services for one (1) year Provision of a local secretary for your company. This means we provide you with a local contact person who will ensure communication between you and the authorities, banks or other parties in El Salvador. The contact person can help you with translations, receiving and forwarding official documents, representing your company and general administrative support. This gives you confidence and convenience in communicating and interacting with government agencies and institutions
Company seal Production of the company seal
Assistance in opening a corporate bank account in the payment system Collection, processing and filing of the documents required for opening a corporate account with a payment system, including consultation of appropriate jurisdiction
Registering the company at the Financial Investigation Unit Company registration in FIU (Required if you will have local business)
Opening a corporate bank account (Banco Azul, Banco central) Assistance in opening a corporate bank account with a traditional bank
Registering establishmentat the Labor Ministry Company registration in Labor Ministry (Required if you have local employees)
Apostilled and Translated company documents Apostille certification and consular legalization of documents, depending on the country of operation
Registering the company at the Salvadoran Social Security (ISSS) Obtaining Social security for the company in ISSS (Required if you have local employees)
Registering the company at the Salvadoran Retirement - Pension Fund Administrators (AFP) Obtaining Pension Fund Administration for the company at AFP (Required if you have local employees)
Preparation and submitting of internal company rules and regulations for Labor Ministry Elaborating and registering the internal company rules and regulations at the Labor Ministry (mandatory from the tenth employee)
Filing Trademark or Tradename Application Trademark or Tradename application
Free consultation We offer a free consultation where you can discuss your needs and questions regarding company registration and management. Our experts will be happy to help you understand the process and provide guidance based on your situation. We are happy to answer your questions and help you make an informed decision about the services you need
Total cost
1550 EUR 3500 EUR 4700 EUR 5500 EUR
Provision of a legal address for 1 (one) year
1350 EUR 1350 EUR 1350 EUR 1350 EUR
Remote company registration with transfer of authority
300 EUR 300 EUR 300 EUR 300 EUR
Accounting services
175 EUR 175 EUR 175 EUR 175 EUR

Deal of the month

If you will register a company until 31 January,
opening a bank account is for FREE

6 easy steps to get started
  • 1

    Select your
    preferred jurisdiction

  • 2

    Choose a bank
    that meets your
    company's needs

  • 3

    Pay for our services
    using a convenient
    payment method

  • 4

    Receive all necessary
    corporate documents

  • 5

    Receive details
    for your newly opened
    bank account

  • 6

    We'll deliver the original
    documents directly
    to you

El Salvador is one of the countries in Latin America that has splendid landscapes and makes a special emphasis on renewable sources of energy. The service sector, international trade, and tourism are the most developed ones in the local economy. El Salvador is also a good business hub for investors. Establishing a company in San Salvador or in any other location in this state can instantly open the next benefits for a non-resident investor.

Arguments in Favor of the Jurisdiction

Purchasing or starting a company in El Salvador may be assessed as a potentially profitable step because this jurisdiction provides:

  • access to large regional and world markets;
  • ">openness to foreign investments;
  • general ease of starting and handling a business;
  • excellent modern infrastructure;
  • technological hub, especially for cryptocurrencies and digital assets;
  • availability of free zones (with income tax, VAT, and customs exemptions);
  • convenience of international transactions in any currency, without limitations (including in cryptos).

Legal and Organizational Forms

Company incorporation in El Salvador and/or establishing an official presence in an alternative way is possible in one of these legal forms:

  • Limited liability company – the most popular and flexible form of doing business in El Salvador that may be established by two persons at least, whether natural or corporate. Non-residents are welcomed as well. All types of monetary and legal obligations of the shareholders are narrowed to their contributions solely. The minimal starting capital for this entity is USD 2,000.
  • Branch – a good alternative to founding a separate entity in El Salvador. A branch can be established by a foreign company to carry out in El Salvador the same types of economic activities as in the country of origin. A parent company will remain 100% in charge of financing the activities and covering the potential losses of a branch.

How to Register a New Entity in El Salvador?

It is possible to establish a company in El Salvador after passing through the next approximate stages:
  1. Defining the exact list of business purposes and activities.
  2. Elaborating on and verifying a business name for a future enterprise.
  3. Collecting and arranging the details from promoters, beneficiaries, the mother company, and managers. Natural persons who are non-residents should get local Tax Identification Numbers.
  4. Drafting corporate documents, including a deed of incorporation and resolutions of founders.
  5. Depositing the amount of starting share capital (5%+).
  6. Paying the registration fee and lodging application documents for consideration. Forming a new entry about a registered company in the Registry of Commerce in case of positive feedback.
  7. Formalizing a new company to pay taxes and compulsory social security payments.
  8. Opening corporate bank accounts.
  9. Applying for and obtaining licenses if amongst the chosen business activities there are regulated ones.

Legal and Regulatory Landscape

The local investment landscape is very favorable to non-resident entrepreneurs. 100% foreign ownership is allowed. The free movement of capital is ensured as well.

All administrative procedures for company registration and further maintenance are simplified and straightforward. There are minimal and reasonable bureaucratic formalities to fulfill. Each company registered in El Salvador should pay an annual renewal fee to keep the so-called business license active. The amount of such a fee depends on the size of the company's assets. Certain types of business activities will still require getting licenses.

Taxation in El Salvador

Any intention to create or buy a company in El Salvador should be assessed along with the next points attributed to taxation in this state:

  • Profit tax (for businesses) – 30%
  • Income tax (for natural persons) – 30%
  • Value-added tax – 13%
  • Withholding tax (for non-residents) – (A) general: (1) dividends – 5% (2) interests – 10% or 20% (3) royalties – 20% (B) for tax havens: (1) dividends – 25% (2) interests – 10% or 25% (3) royalties – 25%
  • Capital gains tax – 10% or 30% depending on the case.

How Aotopay Attorneys Can Assist You

Whether you wish to buy a ready-made company in El Salvador or create a new one, Aotopay attorneys are prepared to foster the easiest realization of these business goals. Lawyers possess versatile expertise in registering businesses worldwide gained through more than 11 000 projects. Forward the details about your business plan in El Salvador and get 100% professional and personalized legal assistance.

Cooperation

Our clients

© 2023, Aotopay