Starting a business in El Salvador offers multiple benefits, including better market positioning, access to financial services, business development opportunities, and tax advantages. Learn how to register a company in El Salvador and take advantage of the benefits of formalization.
How to start a business in El Salvador: benefits, process, and requirements
If you want to start a business in El Salvador, follow these essential steps to ensure a smooth business registration process in El Salvador.
To create a company in El Salvador, the time required varies depending on the type of business entity you want to create. Normally, the process takes between 5 and 7 weeks, with a minimum share capital of US$2,000, and only a 5% fee is required at the time of initiating the registration of the company in El Salvador.
Establishing a business in El Salvador
Types of companies in El Salvador
At the moment of incorporating a company in El Salvador, you have the option to choose between a Sociedad en nombre colectivo, Sociedad de Responsabilidad Limitada, Sociedad Anónima, Sociedad de Responsabilidad Limitada, Sociedad Anónima.
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.
