Interested in establishing a SAS in El Salvador?

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Forming Simplified Joint Stock Companies (SAS) in El Salvador

On December 6, 2023, the Legislative Assembly of El Salvador approved reforms to the Commercial Code, allowing the formation of Simplified Joint Stock Companies (SAS) in El Salvador.

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What is a Simplified Joint Stock Company (SAS) in El Salvador?

A SAS in El Salvador is a legal entity created by one or more natural or legal persons, with limited liability up to the amount of their respective contributions. Its nature is always commercial, regardless of the activities intended for its purpose.

Legal basis for SAS in El Salvador

The legal foundation is established in the reform of the Commercial Code of El Salvador, which includes 11 articles and introduces 28 sections, including a dedicated chapter with all the regulations for SAS in El Salvador. This aims to provide more options for establishing new businesses in the country, with SAS belonging to the category of capital-based commercial societies, as specified in Article 18 of the Commercial Code of El Salvador.

Interested in creating Simplified Joint Stock Companies (SAS) in El Salvador?

Leave us your details below and we will send you all the details and requirements for the creation of a SAS in El Salvador.

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5 Key reasons to establish an SAS in El Salvador

. Individual constitution

A SAS can be founded by a single shareholder, whether an individual or a legal entity, meaning it can be unipersonal.

2. Minimum capital of only US$1

A simplified joint stock company can be founded with a minimum capital of just US$1, and contributions can also include work or labor.

3. No fees for the first year

For the first year following the reform, SAS in El Salvador are exempt from registration fees with the Commercial Registry.

4. Simplified process

The process is carried out through an online registration form provided by the Commercial Registry, which allows digital signatures for foreign investors, making it a streamlined process with fewer legal formalities compared to other company types.

5. Reduced administrative costs

This structure lowers administrative costs, eliminating requirements like appointing an auditor, maintaining physical accounting records, and other paperwork. Electronic management of documents simplifies these obligations.

Advantages of forming an SAS in El Salvador

Unipersonal Option

A SAS can be established by just one person, whether an individual or a company.

Benefits for Individual Entrepreneurs

It allows individuals to separate personal assets from company assets, thereby limiting liability and providing legal protection for both individuals and entities.

Flexibility in Capital Contributions

The share capital can be freely set by shareholders, with contributions starting from US$1, which can include labor or services.

Eligibility for Foreign Companies

Foreign companies can also establish SAS in El Salvador. They only need to present apostilled founding documents in Spanish for the process.

Transformation of Existing Companies

Existing companies can transform into a SAS through a general assembly approval or social pact, making it a flexible option for adapting businesses to modern regulatory frameworks.

Access from Abroad

The process allows foreign management, enabling the sole administrator to manage the company from outside El Salvador with digital signatures, simplifying operations and reducing bureaucracy.

Why Choose an SAS in El Salvador – Simplified Joint Stock Company?

The choice of company type in El Salvador will depend on the business model and the intentions of the shareholders.

A SAS is ideal if you don’t have additional partners or capital investors but want to contribute through labor or minimal investment (as low as US$1). It is particularly suited for reducing compliance costs with commercial obligations.

Additionally, SAS is the recommended option if the sole administrator wishes to manage the company remotely from abroad, as it can be established directly without formalities or third-party intervention. Electronic signatures are accepted, and the company can be dissolved, liquidated, or transformed through a simple form.

Interested in establishing a SAS in El Salvador?

Leave us your details below, and we will send you all the necessary information for forming a simplified Joint stock company (SAS) in El Salvador.