In El Salvador, Simplified Stock Companies (SAS) represent a new business era. From their single-person incorporation to the possibility of being formed virtually, these companies not only offer financial flexibility but also facilitate financial and banking inclusion in the country.
Advantages of Simplified Stock Companies (SAS) in El Salvador
One of the key features of Simplified Stock Companies (SAS) in El Salvador is that they can be incorporated by a single individual (sole proprietorship), whether a natural person or a capital company.
- This structure benefits individual entrepreneurs by allowing them to separate their personal assets from those of the SAS, reducing financial risks.
- Salvadorans residing outside the country can establish a company remotely using certified electronic signatures, making it easier to start a business from anywhere in the world.
- The minimum capital required to form an SAS in El Salvador is set by the shareholders, with a starting amount as low as $1 USD. Additionally, contributions can be made in cash, assets, or even labor.
- A foreign company can establish an SAS in El Salvador by providing its incorporation documents from its country of origin, translated into Spanish and duly apostilled. It must also present documentation proving its legal representation for operations in El Salvador.
- Any existing company can convert into an SAS in El Salvador through a corporate transformation or merger, approved by the general assembly or through a social agreement.
- An SAS in El Salvador can be dissolved for several reasons, including:
- The expiration of the term stated in the incorporation form.
- The inability to carry out the activities outlined in its corporate purpose.
- Other legal conditions as specified in the company’s regulations.
- One of the key features of Simplified Stock Companies (SAS) in El Salvador is that they can be incorporated by a single individual (sole proprietorship), whether a natural person or a capital company.
- The SAS structure contributes to economic growth, allowing more businesses to formalize their operations and gain access to financial and banking services in the country.
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