By starting a business in El Salvador, your company can access better growth opportunities and financial services. Learn how to start a business in El Salvador and take advantage of the benefits of improved market positioning, access to credit, and business development services.
If you want to start a business in El Salvador , be sure to follow these helpful tips for starting a business in El Salvador and the process of formalizing your business.
To start a business in El Salvador , the time required varies depending on the type of business entity you want to create. The process typically takes between 5 and 7 weeks, requires a minimum capital of US$2,000, and only a 5% down payment is required when you start the business registration process in El Salvador.
Types of companies in El Salvador
When creating a company in El Salvador , you have the option of choosing between a general partnership, a limited liability company, or a public limited company.
Company registration in El Salvador
Once you have chosen the right type of company, you must register your business in El Salvador through the National Registry Center (CNR). To do this, you will need a local lawyer to draft the articles of incorporation.
The Ministry of Finance in El Salvador is responsible for issuing the Taxpayer Identification Number (NIT) and the Value-Added Tax (VAT) registration. These are essential steps in the business registration process in El Salvador.
Additionally, companies must register with the Salvadoran Social Security Institute (ISSS) and enroll employees in Pension Fund Administrators (AFP) to comply with labor laws in El Salvador.
After completing the business registration process in El Salvador, your company must establish an accounting system. A certified Salvadoran auditor must approve the company’s accounting policies, financial records, and official bookkeeping practices.
It is essential to consider that throughout the company registration process in El Salvador, you will need to submit various legal documents and pay certain initial taxes and fees, depending on your business type and industry.
