Steps to incorporate a company in El Salvador – Open a company in El Salvador

Starting a business in El Salvador has become a strategic option for domestic and foreign investors seeking to take advantage of a favorable and growing legal environment. Thanks to recent reforms, incorporating a company in El Salvador is now a more streamlined and accessible process, allowing entrepreneurs to establish formal operations in less time and with greater legal security.

From corporations to simplified joint-stock companies (SAS), the country offers various legal structures tailored to the needs of each business. Additionally, there are tax benefits, access to international markets, and institutional support for those who wish to participate in Salvadoran economic development.

Updated on:

26 de June de 2025

Why establish a company in El Salvador?

Proceso paso a paso para crear una empresa en El Salvador

Company formation in El Salvador: legal requirements and procedures.

El Salvador has positioned itself as the safest country in Latin America and an ideal destination for business and investment. The country offers a favorable environment for doing business thanks to the modernization of foreign trade, new infrastructure, digitalization of procedures, and a legal framework that protects and encourages Foreign Direct Investment (FDI), promoting economic growth when starting a business in El Salvador. Furthermore, El Salvador is the first Central American country to recognize Bitcoin as legal tender in 2021. The new reforms to the Bitcoin Law aim to regulate Bitcoin as legal tender in El Salvador.

At Interbiznet, we understand the importance of starting a business in El Salvador. To help you through this process, we’ve developed a detailed guide on the steps required to start a business in this Central American country.

Read on to discover how to make your entrepreneurial dreams come true in El Salvador.

Contenidos

8 steps to start a business in El Salvador

What are the legal requirements for starting a business in El Salvador?

How do I obtain a NIT when I set up a company in El Salvador?

Advantages of starting a business in El Salvador

Frequently asked questions about setting up a company in El Salvador

Contact us today for advice on starting a business in El Salvador!

8 steps to start a business in El Salvador

Step 1 – Define the Type of Legal Company in El Salvador:

Before beginning the incorporation process, it’s important to determine what type of business you want to establish. In El Salvador, options include corporations (SA de CV), partnerships (SNC – SC), and simplified joint-stock companies (SAS), among others. Analyze the characteristics of each and choose the most appropriate one for your business creation in El Salvador.

a) Collective name company or Collective companies (SNC – SC):

A company in El Salvador established under a corporate name, in the name of one or more partners. The partners are jointly liable for the obligations, participate in management, and may appoint a legal representative. Capital is composed of shares or equity interests, which may be unequal. (Articles 73 to 92 of the Commercial Code of El Salvador)

b) Limited Liability Company (Ltda):

This type of company in El Salvador is established with a specific corporate name or denomination followed by “Limitada” or “Ltda.” This structure entails that partners assume limited liability, safeguarding their personal assets from the company’s obligations in El Salvador. It is suitable for smaller companies with a small number of partners and limited capital requirements. (Articles 101 to 124 of the Commercial Code of El Salvador)

c) Public Limited Company (SA de CV):

These are companies in El Salvador established under a single name, immediately followed by “Sociedad Anónima” or “SA.” Shareholders’ liability is limited to the value of their contributions. Ideal for medium- or large-sized companies in El Salvador seeking to raise capital through the sale of shares. (Articles 191 to 295 of the Commercial Code of El Salvador).

d) Simplified Joint Stock Companies (SAS):

A Simplified Joint Stock Company (SAS) is a legal entity resulting from the expression of the will of one or more natural or legal persons, with limited liability up to the amount of their respective contributions, whose nature will always be commercial, regardless of the activities planned for its purpose.

Constitucion de sociedades en El Salvador – Tipos de Sociedades

Incorporation of companies in El Salvador – Types of companies

Step 2 – Search for the Company’s Trade Name Registration:

The next step is to verify the availability of the business name you want to use to create a company in El Salvador. You must ensure that the company name is not already registered by another entity in El Salvador. Once you have selected a unique name, you can proceed to register it with the National Registry Center (CNR). This step ensures that the chosen company name is not already in use by another entity.

Step 3 – Preparation of legal documentation to create a company in El Salvador:

To formalize the incorporation of your company, you will need to draft the corresponding legal documents, such as the articles of incorporation and bylaws. It is advisable to consult with a lawyer specializing in business law to ensure all legal aspects are handled correctly.

Step 3.1 – Prepare the company’s articles of incorporation

The articles of incorporation are the legal document establishing the company’s formation. They must be drawn up by a notary and contain information such as:

Company Name: The official name of the company .
Corporate purpose of the company: The commercial activities that the company will carry out .
Company share capital: The amount of capital with which the company starts .
Shareholding structure of the company: The distribution of shares among the company’s partners .
Appointment of the company’s legal representative: The person who will act on behalf of the company

Step 4: Register the company in the Commercial Registry

Once the company’s articles of incorporation are ready, the company must be registered with the Commercial Registry. This step grants the company legal personality and enables it to operate legally in El Salvador.

Step 5: Obtain the company’s Tax Identification Number (NIT)

The NIT is a unique number that identifies a company to the tax authorities. It is essential for complying with the company’s tax obligations.

Invertir en El Salvador

Investing in El Salvador – Registering a company in El Salvador

Step 6: Register the company with the Municipal Government

Depending on the location of the business, it must be registered with the corresponding municipal government. This registration allows the business to operate within the municipal jurisdiction.

Step 7: Register the company with the Salvadoran Social Security Institute (ISSS) and a Pension Fund Administrator (AFP)

If the company will have employees, it is mandatory to register it with the ISSS (Spanish Social Security Institute) and an AFP (Public Health Insurance Fund). This ensures that the company complies with its labor and social security obligations toward its employees.

Step 8: Obtain the necessary permits and licenses for the business

Depending on the company’s economic activity, it may be necessary to obtain additional permits or licenses for the company to operate legally.

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Below we present the procedures and requirements for establishing a company in El Salvador. At interbiznet, we offer our services to facilitate this process, in addition to providing accounting and administrative services.

PROCEDURES TO BE FOLLOWED TO INCORPORATE A COMPANY IN EL SALVADOR

¿Cuánto tiempo lleva constituir una sociedad en El Salvador?

How long does it take to incorporate a company in El Salvador?

What are the legal requirements for starting a business in El Salvador?

To establish a company in El Salvador , it is essential to comply with certain legal requirements to ensure the proper registration of your business.

CONSTITUTION OF NATIONAL SOCIETY

Deed of incorporation of a company before a Salvadoran notary.
At least two shareholders (natural or legal persons).
The minimum founding capital is $2,000.00. Of this amount, the total amount or $100.00, or 5% of the minimum capital required, must be paid by certified check from a Salvadoran bank in the name of the company.

How do you register a company with the National Registry Center (CNR) in El Salvador?

Registration with the National Registry of Registered Citizens (CNR) is an essential step for establishing a company in El Salvador . You need:

REGISTRATION OF THE CONSTITUTION OF THE COMPANY IN EL SALVADOR

Original copy of the articles of incorporation of the National company.
Payment of registration fees $0.57 for every $114.29 of capital.
Letter-sized photocopy, reduced to 74%, of the company’s articles of incorporation.

What steps are required to register the initial balance sheet when forming a company in El Salvador?

Original and copy of the initial balance sheet audited externally.
Receipt of payment for registration fees ($17.14).
Legal size photocopy, reduced to 74%.

At Interbiznet, we make the process of incorporating a company in El Salvador simple and hassle-free. Trust us to guide your business to success from the start.

Start up a business in El Salvador

How do I obtain a NIT when I set up a company in El Salvador?

To establish a company in El Salvador , you must register and obtain the NIT from the Ministry of Finance :

Registration of the Tax Identification Number (NIT) in El Salvador

Complete form F-210V4 .
Original and photocopy of the company’s articles of incorporation in El Salvador.
Original and certified photocopy of NIT of legal representative and shareholders.
Original and certified photocopies of DUI, Passport of legal representative.
Submit a receipt for: water, electricity, landline phone number from the Notifications address, or a lease agreement (which proves the physical location of the property)
First time $2.00 – Refill $6.00
If you do not process it in person, authorization is required.

OBTAINING THE VALUE ADDED TAX (VAT) TAXPAYER REGISTRATION NUMBER

Complete form F-210V4 .
Original and photocopy of the company’s articles of incorporation in El Salvador.
Original and photocopy of the company’s and legal representative’s NIT.
Original and photocopy of the legal representative’s DUI.
Present a receipt for: water, electricity, landline phone number from the Notifications address or lease agreement.
List of all partners with their ID and respective participation percentage F-210V4
If you do not process it in person, authorization is required.

What is registration and obtaining solvency with ONEC when establishing a company in El Salvador?

After incorporating a company in El Salvador, in order to obtain the SOLVENCY OF REGISTRATION IN THE ONEC BEFORE DIGESTYC, it is necessary to present the following documentation.

Complete application form.
Original and photocopy of NIT of the company in El Salvador.
Original and photocopy of the articles of incorporation of the company in El Salvador.
Original of the initial externally audited balance sheet.
Receipt of payment according to the company’s assets.

What are the steps to incorporate a company in El Salvador?

NATIONAL REGISTRATION CENTER

MATRÍCULA DE EMPRESA Y DE ESTABLECIMIENTO

Complete the application form.
Original and photocopy of the externally audited initial balance sheet.
Proof of registration with the National Office of Statistics and Census (ONEC), formerly DIGESTYC.
Original and photocopy of the company’s NIT.
I receive payment for registration fees.

MUNICIPAL MAYOR’S OFFICE

Application.
Proof of Payment of Fee.
Notarized certificate of incorporation.
(Original and copy).
NIT (Original and copy).
NIT of the legal representative (copy).
Initial Balance.
Credentials of the legal representative certified by a notary (Original and copy).
.

MINISTRY OF LABOR REGISTRATION OF THE WORK CENTER

Form
Original and copy of the articles of incorporation of the company in El Salvador
Copy of the legal representative’s credential
Original and copy of the externally audited balance sheet
Original and copy of the company’s NIT in El Salvador
Original and copy of the NIT and DUI of the legal representative.

REGISTRATION OF INTERNAL WORK REGULATIONS (MORE THAN 10 WORKERS)

Original and copy of the Delivery Note.
Three copies of the internal work regulations.

SALVADORAN SOCIAL SECURITY INSTITUTE

Employer Registration Notice (Application).
Original and photocopy of the company’s articles of incorporation.
Original and photocopy of the company’s NIT.
Original and photocopy of the legal representative’s DUI.

REGISTRATION IN THE PENSION FUND ADMINISTRATION

Submit a written document with all the company details and send it to the AFP of your choice.
Send a copy of NIT and VAT to the selected AFP.
If employees are not affiliated with any AFP, please instruct them to join the AFP of their choice

Advantages of starting a business in El Salvador

Starting a business in El Salvador is a strategic decision for entrepreneurs and investors looking to expand into international markets. Thanks to its location in the heart of the Americas, El Salvador has a solid network of trade agreements with more than 41 countries, facilitating the export of goods and services to high-value destinations.

Furthermore, incorporating a company in El Salvador allows companies to take advantage of its privileged geographic location, with efficient logistical access to North America, South America, and the Caribbean. Another key factor is the local workforce, recognized for its productivity and commitment, making the country a highly competitive option for establishing sustainable business operations.

Frequently asked questions about setting up a company in El Salvador

What is the minimum share capital required to form a corporation in El Salvador?

The minimum share capital required is USD 2,000.00 .

Is it necessary to pay the entire share capital when establishing a company in El Salvador?

No. Only 5% of the share capital must be paid at the time of incorporation. The remainder can be paid within one year.

How many partners are needed to form a company in El Salvador?

To establish a company in El Salvador , at least two partners are required , who may be natural or legal persons, both national and foreign.

What is a legal representative of a company?

The legal representative is the natural person designated to act on behalf of the company . This may be a sole director or the chairman of the board of directors, depending on the appointment established in the deed.

Is it mandatory for a company to have a legal representative in El Salvador?

Yes, according to Article 127 of the Salvadoran Tax Code, each company must appoint a director with a permanent physical presence in the country , whether Salvadoran or foreign, to represent it before the Tax Administration.

Is it necessary to file tax returns after incorporating a company?

Yes, according to Article 91 of the Tax Code, once incorporated, a company is required to file tax returns , even if it generates no income or taxes are not due.

What are the legal requirements for starting a business in El Salvador?

To establish a company in El Salvador, the following documents are required:

Identification documents of the company’s partners: DUI, passport or resident card
Tax Identification Number (NIT) of the company’s partners: Each partner of the company must have their own NIT.
Municipal solvency of the company’s partners: Document that certifies that the company’s partners are up to date with their municipal obligations.
Company Name: The proposed name for the company.
Company purpose: Detailed description of the activities that the company will carry out.
Company share capital: Amount of money that the company’s partners will contribute for the operation of the company.
Percentage of participation of the company’s partners: Distribution of capital among the company’s partners.
Appointment of the company’s legal representative and his/her alternate:

What is a Variable Capital Corporation (SA de CV)?

This is a company with capital divided into shares, where the shareholders’ liability is limited to the amount of their contributions.

How to form a company in El Salvador?

To establish a company in El Salvador, you must first choose the type of company (such as a Public Limited Company (SA de CV) or a Simplified Joint Stock Company (SAS). Then, you must draft the articles of incorporation with bylaws before a notary. Afterward, you must register it with the Commercial Registry of the National Registry Center (CNR). You must also obtain a Tax Identification Number (NIT) and a Taxpayer Registration Number (VAT) from the Ministry of Finance. Finally, you must complete municipal registration and process additional permits based on your business activity. This process ensures legal compliance and formalizes the company’s operations in El Salvador.

Do you need legal advice to register a company in El Salvador?

Interbiznet is your trusted partner in the process of starting a business in El Salvador. Our team of highly trained professionals is dedicated to providing you with the guidance and support you need to successfully establish your business in this vibrant Central American country.

Contact us today for advice on starting a business in El Salvador!

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Start a company in El Salvador