Expanding a foreign non-profit foundation to El Salvador requires compliance with specific legal and regulatory requirements. This guide outlines the essential steps and documentation needed to successfully register your foundation and launch your humanitarian initiatives in the country.
Foreign non-governmental organizations (NGOs), charities, and non-profit foundations must submit the following documents to obtain legal authorization:
- Certification from the registration authority in the country of origin.
- Notarized copy of the Foundation’s Articles of Incorporation.
- Certified minutes of the General Assembly approving the establishment in El Salvador.
- General Administrative Power of Attorney for the legal representative in El Salvador.
- List of designated foreign personnel assigned to work in the country.
- Initial financial statement and certification of funds allocated for project development in El Salvador.
Additional Documentation for the Registration of Non-Profit Foundations
As of June 7, 2022, the Association and Non-Profit Foundation Registry Directorate has implemented new legal requirements in compliance with:
- Article 2 of the Anti-Money Laundering and Asset Laundering Law.
- Article 83 of the Regulations for the Prevention, Detection, and Control of Money Laundering, Terrorism Financing, and the Financing of Weapons of Mass Destruction Proliferation, established by the Financial Investigation Unit (UIF).
Mandatory Compliance Documentation
All registered non-profit entities must submit the following additional documents along with financial information:
- Proof of registration with the Financial Investigation Unit (UIF) of the Attorney General’s Office.
- Certified meeting minutes appointing a Compliance Officer and an Alternate Compliance Officer.
- Updated compliance reports whenever there are changes in the Compliance Officers.
Additional Obligations for Non-Profit Organizations in El Salvador
To ensure transparency and compliance, non-profit foundations must adhere to Article 84 of the Regulations for the Prevention of Money Laundering, Terrorism Financing, and Weapons Proliferation Financing by meeting the following obligations:
- Maintain detailed records of the purpose and objectives of their declared activities..
- Prepare and submit annual financial statements with a detailed breakdown of income and expenditures.
- Implement internal controls to ensure funds are used appropriately in line with the foundation’s mission.
- Verify the identity, background, and reputation of beneficiaries receiving financial support.
- Keep a secure record of major donors while respecting confidentiality laws, to prevent misuse of charitable funds.
- Maintain national and international transaction records for at least 15 years for auditing purposes.
- Provide records and documentation upon request by regulatory authorities.
Compliance with these requirements is essential to guarantee the legality, transparency, and proper functioning of non-profit organizations in El Salvador. If you are planning to register a foreign foundation and need legal guidance, our team of non-profit registration experts is here to help.
Be sure to comply with these requirements to facilitate the incorporation process. Contact us for more information on how to establish your nonprofit foundation in El Salvador.
Start your incorporation process today and make a difference in El Salvador!