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Register company in El Salvador

August 28, 2023

[av_section min_height=” min_height_pc=’25’ min_height_px=’500px’ shadow=’no-border-styling’ bottom_border=’no-border-styling’ bottom_border_diagonal_color=’#333333′ bottom_border_diagonal_direction=” bottom_border_style=” padding=’default’ custom_margin=’0px’ custom_margin_sync=’true’ av-desktop-custom_margin=” av-desktop-custom_margin_sync=’true’ av-medium-custom_margin=” av-medium-custom_margin_sync=’true’ av-small-custom_margin=” av-small-custom_margin_sync=’true’ av-mini-custom_margin=” av-mini-custom_margin_sync=’true’ svg_div_top=” svg_div_top_color=’#333333′ svg_div_top_width=’100′ svg_div_top_height=’50’ svg_div_top_max_height=’none’ svg_div_top_opacity=” svg_div_bottom=” svg_div_bottom_color=’#333333′ svg_div_bottom_width=’100′ svg_div_bottom_height=’50’ svg_div_bottom_max_height=’none’ svg_div_bottom_opacity=” fold_type=” fold_height=” fold_more=’Read more’ fold_less=’Read less’ fold_text_style=” fold_btn_align=” color=’main_color’ background=’bg_color’ custom_bg=” background_gradient_direction=’vertical’ background_gradient_color1=’#000000′ background_gradient_color2=’#ffffff’ background_gradient_color3=” src=’https://www.fionzaglobal.com/wp-content/uploads/2023/08/atlantis-resort-bahamas-1470×600-1-300×122.jpg’ attachment=’2070′ attachment_size=’medium’ attach=’scroll’ position=’top center’ repeat=’stretch’ video=” video_ratio=’16:9′ overlay_enable=’aviaTBoverlay_enable’ overlay_opacity=’0.5′ overlay_color=’#000000′ overlay_pattern=” overlay_custom_pattern=” custom_arrow_bg=” fold_overlay_color=” fold_text_color=” fold_btn_color=’theme-color’ fold_btn_bg_color=” fold_btn_font_color=” size-btn-text=” av-desktop-font-size-btn-text=” av-medium-font-size-btn-text=” av-small-font-size-btn-text=” av-mini-font-size-btn-text=” fold_timer=” z_index_fold=” css_position_z_index=” av-desktop-css_position_z_index=” av-medium-css_position_z_index=” av-small-css_position_z_index=” av-mini-css_position_z_index=” id=” custom_class=” template_class=” aria_label=” av_element_hidden_in_editor=’0′ av_uid=’av-ya0k5c’ sc_version=’1.0′]
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Fionza Consultants is your ultimate destination for seamless international company registration in El Salvador through the El Salvador Company Registry. Our comprehensive service package encompasses El Salvador company registration, the provision of a local nominee director, and the facilitation of El Salvadoran corporate bank account setup. Trust Fionza Consultants as your all-in-one solution to kickstart your business operations in El Salvador with full legal compliance.
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Company Registration – 4 Week
Local Director? – No
Bank Account Opening – 6 Weeks
Travel Required – No
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Registering a company in El Salvador becomes a breeze with Fionza Consultants by your side. Our team of seasoned experts simplifies the entire company formation process, freeing up your valuable time to focus on other crucial aspects of your business.

El Salvador, often underestimated, boasts a flourishing economy in Central America. Its consistent economic growth, untapped markets, and abundant opportunities make it an exceptional destination for new ventures in the region. If El Salvador hasn’t been on your radar for business prospects, now is the perfect moment to reconsider.

Our comprehensive service package covers all the essentials for your El Salvador company registration needs:

El Salvador Company Registration through the El Salvador Registry of Commerce.
Access to a local nominee director.
Local company secretary services and a registered address.
Facilitation of corporate bank account opening.
Ongoing support for annual accounting and tax requirements.

Choose Fionza Consultants to unlock your business potential in El Salvador, and seize the opportunities this thriving economy has to offer.
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[av_heading heading=’Benefits of registering a Company in El Salvador’ tag=’h2′ style=’blockquote modern-quote’ subheading_active=” show_icon=” icon=’ue800′ font=’entypo-fontello’ size=” av-desktop-font-size-title=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” subheading_size=” av-desktop-font-size=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” icon_size=” av-desktop-font-size-1=” av-medium-font-size-1=” av-small-font-size-1=” av-mini-font-size-1=” color=’custom-color-heading’ custom_font=’#6ea4ca’ subheading_color=” seperator_color=” icon_color=” margin=” margin_sync=’true’ av-desktop-margin=” av-desktop-margin_sync=’true’ av-medium-margin=” av-medium-margin_sync=’true’ av-small-margin=” av-small-margin_sync=’true’ av-mini-margin=” av-mini-margin_sync=’true’ headline_padding=” headline_padding_sync=’true’ av-desktop-headline_padding=” av-desktop-headline_padding_sync=’true’ av-medium-headline_padding=” av-medium-headline_padding_sync=’true’ av-small-headline_padding=” av-small-headline_padding_sync=’true’ av-mini-headline_padding=” av-mini-headline_padding_sync=’true’ padding=’10’ av-desktop-padding=” av-medium-padding=” av-small-padding=” av-mini-padding=” icon_padding=’10’ av-desktop-icon_padding=” av-medium-icon_padding=” av-small-icon_padding=” av-mini-icon_padding=” link=” link_target=” title_attr=” id=” custom_class=” template_class=” av_uid=’av-llujvuav’ sc_version=’1.0′ admin_preview_bg=”][/av_heading]

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Investors have compelling reasons to choose El Salvador as their preferred investment destination. Key factors driving this choice include:

Streamlined Incorporation Process: El Salvador offers a straightforward company registration process. For instance, forming a limited liability company requires just two shareholders and one director of any nationality, with a minimal paid-up capital of only US$100. Moreover, it’s possible to register a company in El Salvador without the need for physical presence.
Beneficial Free Zones: El Salvador boasts designated free zones where foreign investors can establish manufacturing companies. These entities enjoy significant tax advantages, including exemption from income tax and VAT for products exported abroad.
Open Foreign Trade Environment: El Salvador maintains an open and unrestricted foreign trade environment. Transactions involving foreign currencies face no regulatory constraints, with the U.S. dollar serving as the local currency. This openness provides investors in El Salvador with a competitive edge in regional business dealings.
Manufacturing Excellence: El Salvador stands out as an ideal location for manufacturing companies due to several compelling reasons, including:
- Low Operational Costs: Operating expenses in El Salvador are notably cost-effective.
- DR-CAFTA Membership: El Salvador is a member of the DR-CAFTA trade agreement, eliminating customs duties for intra-member state trade. This agreement fosters international trade growth.
- Strategic Ports: The country features two major ports facilitating the efficient movement of goods between Central America, the United States, and Asia.
Economic Freedom: El Salvador’s commitment to economic freedom is evident in its ranking as the 16th freest economy in the Americas according to the Index of Economic Freedom for 2019.

Investors are drawn to El Salvador’s business-friendly environment, making it a prime destination for growth and profitability.
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[av_heading heading=’How long does it take to register company in El Salvador and open a corporate bank account?’ tag=’h2′ style=’blockquote modern-quote’ subheading_active=” show_icon=” icon=’ue800′ font=’entypo-fontello’ size=” av-desktop-font-size-title=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” subheading_size=” av-desktop-font-size=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” icon_size=” av-desktop-font-size-1=” av-medium-font-size-1=” av-small-font-size-1=” av-mini-font-size-1=” color=’custom-color-heading’ custom_font=’#6ea4ca’ subheading_color=” seperator_color=” icon_color=” margin=” margin_sync=’true’ av-desktop-margin=” av-desktop-margin_sync=’true’ av-medium-margin=” av-medium-margin_sync=’true’ av-small-margin=” av-small-margin_sync=’true’ av-mini-margin=” av-mini-margin_sync=’true’ headline_padding=” headline_padding_sync=’true’ av-desktop-headline_padding=” av-desktop-headline_padding_sync=’true’ av-medium-headline_padding=” av-medium-headline_padding_sync=’true’ av-small-headline_padding=” av-small-headline_padding_sync=’true’ av-mini-headline_padding=” av-mini-headline_padding_sync=’true’ padding=’10’ av-desktop-padding=” av-medium-padding=” av-small-padding=” av-mini-padding=” icon_padding=’10’ av-desktop-icon_padding=” av-medium-icon_padding=” av-small-icon_padding=” av-mini-icon_padding=” link=” link_target=” title_attr=” id=” custom_class=” template_class=” av_uid=’av-llujwjly’ sc_version=’1.0′ admin_preview_bg=”][/av_heading]

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Dubai Economy now allows foreign investors full ownership, aligning with Federal Decree-Law No. 26 of 2020, which amended Federal Law No. 2 of 2015 on Commercial Companies. Dubai Economy’s official guidelines, available on their website, specify that 100 percent foreign ownership is accessible for over 1,000 commercial and industrial activities. However, certain strategic sectors remain excluded.

In a similar vein, the Department of Economic Development in Abu Dhabi has identified 1,105 registered commercial and industrial activities, permitting non-citizens, whether individuals or legal entities, to obtain economic licenses. This enables them to establish commercial companies with full or partial ownership rights and engage in these activities within the emirate of Abu Dhabi.

This pivotal decision to allow full foreign ownership underscores the Abu Dhabi Government’s commitment to attracting more foreign direct investments. Their aim is to foster an open and flexible business environment, stimulate private sector growth, and elevate Abu Dhabi’s global standing on the investment landscape.
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Fionza Consultants offers a swift El Salvador company registration process, typically completing it within a mere 3 weeks. Once we have received the necessary due diligence documents for directors and shareholders, we initiate a name availability search in the Delaware Division of Corporations.

The best part? You won’t need to make any trips to El Salvador throughout this entire company registration journey.

Upon successful registration, Fionza Consultants promptly furnishes you with essential company documents, including the certificate of formation, memorandum, articles of association, and the register of directors and shareholders.

Within a mere 4 weeks from the company registration date, Fionza Consultants facilitates the opening of your corporate bank account, selecting either a local or internationally renowned bank.

As a result, you can anticipate commencing your business operations and issuing invoices under your El Salvador company in as little as 7 weeks when you engage Fionza Consultants.

For those seeking a detailed breakdown of the process, Fionza Consultants has thoughtfully prepared a step-by-step guide elucidating all the essential requirements for El Salvador company registration.
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[av_heading heading=’Can a foreigner own a business in El Salvador?’ tag=’h2′ style=’blockquote modern-quote’ subheading_active=” show_icon=” icon=’ue800′ font=’entypo-fontello’ size=” av-desktop-font-size-title=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” subheading_size=” av-desktop-font-size=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” icon_size=” av-desktop-font-size-1=” av-medium-font-size-1=” av-small-font-size-1=” av-mini-font-size-1=” color=’custom-color-heading’ custom_font=’#6ea4ca’ subheading_color=” seperator_color=” icon_color=” margin=” margin_sync=’true’ av-desktop-margin=” av-desktop-margin_sync=’true’ av-medium-margin=” av-medium-margin_sync=’true’ av-small-margin=” av-small-margin_sync=’true’ av-mini-margin=” av-mini-margin_sync=’true’ headline_padding=” headline_padding_sync=’true’ av-desktop-headline_padding=” av-desktop-headline_padding_sync=’true’ av-medium-headline_padding=” av-medium-headline_padding_sync=’true’ av-small-headline_padding=” av-small-headline_padding_sync=’true’ av-mini-headline_padding=” av-mini-headline_padding_sync=’true’ padding=’10’ av-desktop-padding=” av-medium-padding=” av-small-padding=” av-mini-padding=” icon_padding=’10’ av-desktop-icon_padding=” av-medium-icon_padding=” av-small-icon_padding=” av-mini-icon_padding=” link=” link_target=” title_attr=” id=” custom_class=” template_class=” av_uid=’av-lluk0zj1′ sc_version=’1.0′ admin_preview_bg=”][/av_heading]

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The El Salvadorian government recognizes the vital role of foreign direct investments in bolstering the country’s economy. El Salvador maintains a welcoming environment for foreign investors, devoid of any discriminatory laws or practices. Moreover, there are no impediments or restrictions on foreign direct investments.

El Salvador’s Exports and Investment Promotion Agency, known as PROESA, actively encourages investments in eight key sectors: textiles and apparel, business services, tourism, aeronautics, agro-industry, light manufacturing, logistics and infrastructure networks, and healthcare services.

Foreign individuals and private entities enjoy the liberty to establish businesses in El Salvador without hindrance. Under the 1999 Investments Law, both foreign and domestic investors are accorded equal treatment, ensuring a level playing field for all.
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[av_heading heading=’Types of entities to be considered when registering a company in El Salvador’ tag=’h2′ style=’blockquote modern-quote’ subheading_active=” show_icon=” icon=’ue800′ font=’entypo-fontello’ size=” av-desktop-font-size-title=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” subheading_size=” av-desktop-font-size=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” icon_size=” av-desktop-font-size-1=” av-medium-font-size-1=” av-small-font-size-1=” av-mini-font-size-1=” color=’custom-color-heading’ custom_font=’#6ea4ca’ subheading_color=” seperator_color=” icon_color=” margin=” margin_sync=’true’ av-desktop-margin=” av-desktop-margin_sync=’true’ av-medium-margin=” av-medium-margin_sync=’true’ av-small-margin=” av-small-margin_sync=’true’ av-mini-margin=” av-mini-margin_sync=’true’ headline_padding=” headline_padding_sync=’true’ av-desktop-headline_padding=” av-desktop-headline_padding_sync=’true’ av-medium-headline_padding=” av-medium-headline_padding_sync=’true’ av-small-headline_padding=” av-small-headline_padding_sync=’true’ av-mini-headline_padding=” av-mini-headline_padding_sync=’true’ padding=’10’ av-desktop-padding=” av-medium-padding=” av-small-padding=” av-mini-padding=” icon_padding=’10’ av-desktop-icon_padding=” av-medium-icon_padding=” av-small-icon_padding=” av-mini-icon_padding=” link=” link_target=” title_attr=” id=” custom_class=” template_class=” av_uid=’av-lluk1qmu’ sc_version=’1.0′ admin_preview_bg=”][/av_heading]

Selecting the right type of company in El Salvador is a crucial first step in opening a business. Each type of company structure has its advantages and disadvantages, so choosing the right one depends on your business objectives, goals, and specific requirements.
When you engage with Fionza Consultants to register your company in El Salvador, we will thoroughly understand your business activities and needs before recommending the most suitable business entity. Our considerations include the nature of your business activities, tax obligations, and the nationalities of your shareholders and directors. Our consultants will also provide detailed information on the requirements for setting up these entities.

The most common types of commercial companies in El Salvador, along with their main characteristics, are as follows:
1. Limited Liability Company (Sociedad de Responsabilidad Limitada or S.R.L):
  - This company structure doesn’t rely on stocks but rather on membership interests, with “partners” instead of shareholders.
  - The management is typically formed by the management team, which selects partners and manager(s) to serve as the company’s legal representatives.
  - Minimum requirements for incorporating an S.R.L. include at least 2 shareholders (designated directors) of any foreign nationality, at least 1 residential director (acting as the legal representative), a registered local address, and no minimum capital requirement.
  - This structure is commonly used by private companies and when multiple parties wish to participate in the company’s establishment.
  - An El Salvador LLC must appoint an auditor and submit an annual audited financial report. Corporate tax is charged at the standard rate of 30% if income is sourced only within the country.
2. Corporation (Sociedad Anónima or S.A.):
  - The S.A. structure is the most prevalent form of business in El Salvador and is characterized by shareholders and capital based on stocks.
  - Legal representation is typically handled by a board of directors or independent management.
  - Naming requirements must include the words “Sociedad Anónima” in the entity’s title.
  - Requirements for incorporating an S.A. include at least 2 shareholders of any nationality, at least 1 director who must be a resident of El Salvador (serving as the legal representative), a registered local address, and a minimum share capital of US$2,000.
3. Branches of Foreign Companies:
  - Foreign companies can engage in commercial activities within El Salvador by establishing a branch in the country.
  - They need to register their capital with the National Investment Office of the Ministry of Economy and then with the Commercial Registry.
Choosing the right company type in El Salvador is a significant decision that should align with your business goals and operational requirements. Fionza Consultants is here to guide you through this process, ensuring that you meet all regulatory requirements and make informed choices for your business’s success.

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[av_heading heading=’How to register a company in El Salvador?’ tag=’h2′ style=’blockquote modern-quote’ subheading_active=” show_icon=” icon=’ue800′ font=’entypo-fontello’ size=” av-desktop-font-size-title=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” subheading_size=” av-desktop-font-size=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” icon_size=” av-desktop-font-size-1=” av-medium-font-size-1=” av-small-font-size-1=” av-mini-font-size-1=” color=’custom-color-heading’ custom_font=’#6ea4ca’ subheading_color=” seperator_color=” icon_color=” margin=” margin_sync=’true’ av-desktop-margin=” av-desktop-margin_sync=’true’ av-medium-margin=” av-medium-margin_sync=’true’ av-small-margin=” av-small-margin_sync=’true’ av-mini-margin=” av-mini-margin_sync=’true’ headline_padding=” headline_padding_sync=’true’ av-desktop-headline_padding=” av-desktop-headline_padding_sync=’true’ av-medium-headline_padding=” av-medium-headline_padding_sync=’true’ av-small-headline_padding=” av-small-headline_padding_sync=’true’ av-mini-headline_padding=” av-mini-headline_padding_sync=’true’ padding=’10’ av-desktop-padding=” av-medium-padding=” av-small-padding=” av-mini-padding=” icon_padding=’10’ av-desktop-icon_padding=” av-medium-icon_padding=” av-small-icon_padding=” av-mini-icon_padding=” link=” link_target=” title_attr=” id=” custom_class=” template_class=” av_uid=’av-llukp52h’ sc_version=’1.0′ admin_preview_bg=”][/av_heading]

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Fionza Consultants recommends carefully reviewing this comprehensive guide to fully understand the essential steps required for registering a company in El Salvador and setting up a bank account. By following these 7 steps systematically, you can anticipate initiating business operations with your El Salvador company within 7 weeks.

Step 1: Choosing the Optimal Business Structure Before initiating the company formation process, it is imperative to select the most suitable business structure. Fionza Consultants will offer expert advice to help you determine the ideal business entity tailored to your specific needs. Generally, the most prevalent type of company in El Salvador is the Limited Liability Company, also known as a company limited by shares.

Step 2: Reservation of Company Name Fionza Consultants will conduct a thorough search and reserve your chosen company name through the El Salvador Registry of Commerce.

Step 3: Preparation and Notarization of Required Documents Once your company name has received approval, Fionza Consultants will proceed to prepare and notarize the necessary corporate documents, including the relevant forms and articles of association required for company registration in El Salvador. Following this, your company will be registered with the El Salvador Registry of Commerce. Upon successful registration, you will receive the Certificate of Formation and a certified copy of the company’s Articles of Organization.

Step 4: Opening a Corporate Bank Account Concurrently with the company registration process, Fionza Consultants will initiate the process of opening a corporate bank account. This step involves depositing a minimum of 5% of the share capital before proceeding with the company’s registration with the Registry of Commerce. Fionza Consultants will facilitate the document consolidation and assist in opening a corporate bank account with a reputable bank of your choice.

While some local banks in El Salvador may require in-person visits for account opening, not all banks have this requirement. If travel is necessary, our team can accompany you to the bank meeting. Alternatively, we can negotiate with the banks to conduct a conference call or request a waiver. Once the bank account is successfully opened, Fionza Consultants will courier the internet banking token and access codes to your preferred address.

Step 5: Post-Registration Compliance Following the registration of your company, Fionza Consultants will guide you through the process of registering your company with relevant governmental authorities. This includes mandatory registrations with the Ministry of Labor, the Tax Authorities (Hacienda), and the Salvadorian Institute of Social Security. Additionally, within 15 days after Mercantile Registry registration, the company must be registered with the Ministry of Finance (Ministerio de Hacienda) to obtain an NIT (Número de Identificación Tributaria) and RNC (Número de Registro del Contribuyente). This requires submitting shareholders’ documentation, personal information, personal NIT, and proof of Mercantile Registry registration.

Step 6: Legalization of Company Books by an Auditor Fionza Consultants will facilitate the legalization of your entity’s books of account. According to Article 40 of the Code of Commerce, these books can be legalized either by an external auditor or by the Registry of Commerce.

Step 7: Employee Registration with Pension Fund Administrators Moving forward, Fionza Consultants will proceed with the registration of your entity’s employees with the El Salvador Pension Fund Administrators (Administradora de Fondos de Pensiones).

This comprehensive process will ensure that your business in El Salvador is properly established and compliant with all legal and regulatory requirements, allowing you to embark on your business endeavors with confidence.
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[av_heading heading=’Types of business-activities’ tag=’h2′ style=’blockquote modern-quote’ subheading_active=” show_icon=” icon=’ue800′ font=’entypo-fontello’ size=” av-desktop-font-size-title=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” subheading_size=” av-desktop-font-size=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” icon_size=” av-desktop-font-size-1=” av-medium-font-size-1=” av-small-font-size-1=” av-mini-font-size-1=” color=’custom-color-heading’ custom_font=’#6ea4ca’ subheading_color=” seperator_color=” icon_color=” margin=” margin_sync=’true’ av-desktop-margin=” av-desktop-margin_sync=’true’ av-medium-margin=” av-medium-margin_sync=’true’ av-small-margin=” av-small-margin_sync=’true’ av-mini-margin=” av-mini-margin_sync=’true’ headline_padding=” headline_padding_sync=’true’ av-desktop-headline_padding=” av-desktop-headline_padding_sync=’true’ av-medium-headline_padding=” av-medium-headline_padding_sync=’true’ av-small-headline_padding=” av-small-headline_padding_sync=’true’ av-mini-headline_padding=” av-mini-headline_padding_sync=’true’ padding=’10’ av-desktop-padding=” av-medium-padding=” av-small-padding=” av-mini-padding=” icon_padding=’10’ av-desktop-icon_padding=” av-medium-icon_padding=” av-small-icon_padding=” av-mini-icon_padding=” link=” link_target=” title_attr=” id=” custom_class=” template_class=” av_uid=’av-llukrrei’ sc_version=’1.0′ admin_preview_bg=”][/av_heading]

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Foreign entrepreneurs in El Salvador engage in various key business activities, including:

Cryptocurrency Business: Foreign entrepreneurs are actively involved in cryptocurrency-related ventures, taking advantage of El Salvador’s innovative approach to digital currencies.
Energy Sector: Many foreign investors participate in the energy sector, exploring opportunities in renewable energy projects and traditional energy sources.
Electricity Production: Foreign entrepreneurs play a significant role in electricity production projects, contributing to the country’s power generation infrastructure.
Textile Industry: The textile industry attracts foreign entrepreneurs seeking to manufacture and export textiles and apparel, capitalizing on El Salvador’s skilled workforce.
Transport Infrastructure: Foreign investors are involved in developing and enhancing transport infrastructure, including roads, ports, and logistics, to facilitate efficient movement of goods and people.

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[av_heading heading=’Restricted for foreign entrepreneurs are the following business activities’ tag=’h2′ style=’blockquote modern-quote’ subheading_active=” show_icon=” icon=’ue800′ font=’entypo-fontello’ size=” av-desktop-font-size-title=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” subheading_size=” av-desktop-font-size=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” icon_size=” av-desktop-font-size-1=” av-medium-font-size-1=” av-small-font-size-1=” av-mini-font-size-1=” color=’custom-color-heading’ custom_font=’#6ea4ca’ subheading_color=” seperator_color=” icon_color=” margin=” margin_sync=’true’ av-desktop-margin=” av-desktop-margin_sync=’true’ av-medium-margin=” av-medium-margin_sync=’true’ av-small-margin=” av-small-margin_sync=’true’ av-mini-margin=” av-mini-margin_sync=’true’ headline_padding=” headline_padding_sync=’true’ av-desktop-headline_padding=” av-desktop-headline_padding_sync=’true’ av-medium-headline_padding=” av-medium-headline_padding_sync=’true’ av-small-headline_padding=” av-small-headline_padding_sync=’true’ av-mini-headline_padding=” av-mini-headline_padding_sync=’true’ padding=’10’ av-desktop-padding=” av-medium-padding=” av-small-padding=” av-mini-padding=” icon_padding=’10’ av-desktop-icon_padding=” av-medium-icon_padding=” av-small-icon_padding=” av-mini-icon_padding=” link=” link_target=” title_attr=” id=” custom_class=” template_class=” av_uid=’av-lluksezt’ sc_version=’1.0′ admin_preview_bg=”][/av_heading]

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Foreign entrepreneurs in El Salvador actively engage in various lucrative business sectors, including:

1. Telecommunications: El Salvador’s telecommunications sector attracts foreign investors who seek opportunities in expanding and improving communication networks.
2. Television and Radio Broadcasting: Foreign entrepreneurs participate in the television and radio industry, catering to the country’s media and entertainment needs.
3. Postal Services: Opportunities in postal services, including parcel delivery and mail distribution, are explored by foreign investors looking to provide efficient mailing solutions.
4. Banking and Financial Services: El Salvador’s banking and financial sector draw foreign entrepreneurs aiming to offer a range of financial services, from banking to investment solutions.
5. Air Transport: Foreign investors play a significant role in the development and operation of air transport services, contributing to the country’s connectivity and accessibility.

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[av_heading heading=’Tax and accounting obligations’ tag=’h2′ style=’blockquote modern-quote’ subheading_active=” show_icon=” icon=’ue800′ font=’entypo-fontello’ size=” av-desktop-font-size-title=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” subheading_size=” av-desktop-font-size=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” icon_size=” av-desktop-font-size-1=” av-medium-font-size-1=” av-small-font-size-1=” av-mini-font-size-1=” color=’custom-color-heading’ custom_font=’#6ea4ca’ subheading_color=” seperator_color=” icon_color=” margin=” margin_sync=’true’ av-desktop-margin=” av-desktop-margin_sync=’true’ av-medium-margin=” av-medium-margin_sync=’true’ av-small-margin=” av-small-margin_sync=’true’ av-mini-margin=” av-mini-margin_sync=’true’ headline_padding=” headline_padding_sync=’true’ av-desktop-headline_padding=” av-desktop-headline_padding_sync=’true’ av-medium-headline_padding=” av-medium-headline_padding_sync=’true’ av-small-headline_padding=” av-small-headline_padding_sync=’true’ av-mini-headline_padding=” av-mini-headline_padding_sync=’true’ padding=’10’ av-desktop-padding=” av-medium-padding=” av-small-padding=” av-mini-padding=” icon_padding=’10’ av-desktop-icon_padding=” av-medium-icon_padding=” av-small-icon_padding=” av-mini-icon_padding=” link=” link_target=” title_attr=” id=” custom_class=” template_class=” av_uid=’av-llukt7sq’ sc_version=’1.0′ admin_preview_bg=”][/av_heading]

Incorporating your company in El Salvador involves crucial accounting and tax considerations. Entrusting your accounting and tax obligations to Fionza Consultants ensures that you have expert guidance every step of the way. Our dedicated team of consultants will manage your financial statements, corporate tax returns, and audits efficiently, eliminating the need for you to travel or worry about compliance issues.

By outsourcing your accounting and tax needs to Fionza Consultants, you not only ensure timely reporting and filings but also enjoy cost savings on overhead expenses. Before commencing our engagement, our proficient accounting team will keep you well-informed about all the essential deadlines and expectations. Subsequently, we will meticulously prepare all required filings in advance to guarantee that you meet the stipulated deadlines seamlessly.

El Salvador’s tax landscape is governed by various regimes overseen by the General Office of Internal Revenue (DGII) and the General Customs Office (DGA), under the authority of the Treasury Department (Ministerio de Hacienda). The DGII oversees:

Income Tax: The corporate income tax (CIT) rate stands at 30% and is applicable to a company’s total revenues. However, there is a reduced CIT rate of 25% for companies with taxable income equal to or less than US$150,000 in the fiscal year. CIT in El Salvador follows the principle of territoriality, primarily taxing activities and assets within the country, along with services rendered or utilized therein.
Value-Added Tax (VAT): VAT is levied on the transfer of goods and services, including rent payments for real estate transactions. The standard VAT rate is 13%, with a zero tax rate applied to exports of goods and services. Specific foreign entities and citizens under reciprocity treatment agreements may qualify for VAT exemptions. VAT filings are on a monthly basis, with payment and filing due within 10 working days after the end of the monthly period.

In addition to income tax and VAT, other tax considerations include:

Customs Duties: Most Customs Duties range from 0% to 20%. However, countries with which El Salvador has Free Trade Agreements, such as the USA, Central America, México, Dominican Republic, and Chile, may benefit from exemptions.
Social Security Taxes: Managed by the Instituto Salvadoreño del Seguro Social, these taxes apply to employers and employees. They are calculated based on monthly salaries, with a 7.5% rate for employers and 3% for employees, with a maximum payment of US$20.57.

By partnering with Fionza Consultants for your accounting and tax needs in El Salvador, you ensure compliance with the country’s tax regulations while optimizing your financial operations.

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[av_heading heading=’El Salvador and Bitcoin’ tag=’h2′ style=’blockquote modern-quote’ subheading_active=” show_icon=” icon=’ue800′ font=’entypo-fontello’ size=” av-desktop-font-size-title=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” subheading_size=” av-desktop-font-size=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” icon_size=” av-desktop-font-size-1=” av-medium-font-size-1=” av-small-font-size-1=” av-mini-font-size-1=” color=’custom-color-heading’ custom_font=’#6ea4ca’ subheading_color=” seperator_color=” icon_color=” margin=” margin_sync=’true’ av-desktop-margin=” av-desktop-margin_sync=’true’ av-medium-margin=” av-medium-margin_sync=’true’ av-small-margin=” av-small-margin_sync=’true’ av-mini-margin=” av-mini-margin_sync=’true’ headline_padding=” headline_padding_sync=’true’ av-desktop-headline_padding=” av-desktop-headline_padding_sync=’true’ av-medium-headline_padding=” av-medium-headline_padding_sync=’true’ av-small-headline_padding=” av-small-headline_padding_sync=’true’ av-mini-headline_padding=” av-mini-headline_padding_sync=’true’ padding=’10’ av-desktop-padding=” av-medium-padding=” av-small-padding=” av-mini-padding=” icon_padding=’10’ av-desktop-icon_padding=” av-medium-icon_padding=” av-small-icon_padding=” av-mini-icon_padding=” link=” link_target=” title_attr=” id=” custom_class=” template_class=” av_uid=’av-llukuj6a’ sc_version=’1.0′ admin_preview_bg=”][/av_heading]

As El Salvador takes the historic step of adopting Bitcoin as legal tender, there has been much speculation about the immediate effects of this legislation on the country:

Bitcoin for Debt Settlement: Bitcoin can now be used without restrictions in settling debts, offering a versatile payment option for various financial transactions.
Bitcoin for Products and Services: It is now possible to use Bitcoin as a form of payment for products and services, expanding the range of payment methods available to businesses and consumers.
Bitcoin for Tax Payments: Bitcoin can be utilized to pay various types of taxes, providing taxpayers with an alternative payment option to traditional currencies.
Debt Settlement in Bitcoin: Any pre-existing debts denominated in US dollars can now be settled using Bitcoin, offering flexibility in managing financial obligations.
US Dollar Continues as Reference Currency: While Bitcoin gains legal status, the US dollar will continue to serve as the reference currency for accounting standards. Additionally, the government plans to establish a mechanism that allows consumers to instantly and automatically convert Bitcoin into US dollars.

The legislation regarding the use of Bitcoin in El Salvador as legal tender was officially published by the Salvadoran government on June 9, 2021, and it became effective in the country on September 7, 2021. However, it’s worth noting that the recent price volatility in Bitcoin and other cryptocurrencies has raised questions about the potential implications for El Salvador. It is still early to predict the full extent of the impact, but El Salvador’s move marks a significant step towards broader global acceptance of Bitcoin alongside traditional currencies.

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[av_heading heading=’Why do countries register in El Salvador?’ tag=’h2′ style=’blockquote modern-quote’ subheading_active=” show_icon=” icon=’ue800′ font=’entypo-fontello’ size=” av-desktop-font-size-title=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” subheading_size=” av-desktop-font-size=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” icon_size=” av-desktop-font-size-1=” av-medium-font-size-1=” av-small-font-size-1=” av-mini-font-size-1=” color=’custom-color-heading’ custom_font=’#6ea4ca’ subheading_color=” seperator_color=” icon_color=” margin=” margin_sync=’true’ av-desktop-margin=” av-desktop-margin_sync=’true’ av-medium-margin=” av-medium-margin_sync=’true’ av-small-margin=” av-small-margin_sync=’true’ av-mini-margin=” av-mini-margin_sync=’true’ headline_padding=” headline_padding_sync=’true’ av-desktop-headline_padding=” av-desktop-headline_padding_sync=’true’ av-medium-headline_padding=” av-medium-headline_padding_sync=’true’ av-small-headline_padding=” av-small-headline_padding_sync=’true’ av-mini-headline_padding=” av-mini-headline_padding_sync=’true’ padding=’10’ av-desktop-padding=” av-medium-padding=” av-small-padding=” av-mini-padding=” icon_padding=’10’ av-desktop-icon_padding=” av-medium-icon_padding=” av-small-icon_padding=” av-mini-icon_padding=” link=” link_target=” title_attr=” id=” custom_class=” template_class=” av_uid=’av-llukvf6p’ sc_version=’1.0′ admin_preview_bg=”][/av_heading]

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Before proceeding to register your company in El Salvador, it is essential to have a comprehensive understanding of the country’s economic and political landscape. This knowledge is crucial to ensure the safe and successful operation of your business and the achievement of your objectives.

Political Environment: El Salvador’s government policies have been favorable towards foreign private investment, offering tax incentives to attract foreign capital for commercial and industrial development. These incentives are regulated by various laws, including the Investment Law, Industrial and Commercial Free-Zones Law, International Services Law, Tax Incentives for the Promotion of Renewable Energy Law, and the Law for Reactivation of Exports. Foreign direct investment has played a pivotal role in the country’s modernization, leading to economic growth and improvements in social conditions.

El Salvador is also considered a conducive environment for business, ranking 91st out of 190 countries in the 2020 Ease of Doing Business report by the World Bank.

Economic Environment: El Salvador operates on a dollarized economy since adopting the US dollar in 2001, ensuring stability in inflation and currency. The country has experienced substantial economic growth, with the GDP increasing significantly since the end of the civil war in 1992. El Salvador boasts a diverse portfolio of trade treaties and agreements with countries like the United States, Mexico, Taiwan, and regions of Central America and the European Union, providing access to a vast potential market.

The country’s infrastructure is highly competitive in Latin America and Central America, with modern facilities, efficient logistics, advanced telecommunications, and reliable electricity markets.

Legal Environment: El Salvador’s legal framework facilitates easy company registration and incorporation, offering attractive tax incentives and regulatory support. It boasts one of the lowest tax rates in the region and provides a favorable environment for business growth.

Social Environment: El Salvador has made significant strides in economic prosperity, with gross national income (GNI) reaching upper-middle-income levels. The country has also witnessed a reduction in poverty rates and increased income equality, making it one of the most equitable nations in Latin America.

While Spanish is the official language, the importance of English in various industries due to globalization cannot be underestimated.

El Salvador has garnered recognition as one of the most cost-effective locations in Latin America, making it an attractive destination for foreign investors seeking lower operational costs.

Technology Environment: The telecommunications market in El Salvador offers high-quality services at competitive prices, with continuous investments in infrastructure and the adoption of cutting-edge technologies by major telecommunications companies.

Environmental Considerations: El Salvador is rich in water resources, but overexploitation and pollution pose challenges. Sustainable management of these resources is a concern, and addressing environmental issues is essential for long-term sustainability.

Understanding these aspects of El Salvador’s environment is vital for foreign entrepreneurs considering business opportunities in the country, ensuring a well-informed and strategic approach to company registration and operation.
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[av_toggle title=’Is foreign ownership allowed?’ tags=” custom_id=” av_uid=’av-llukwo6h’ sc_version=’1.0′]

Yes, up to 100% foreign ownership is allowed

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[av_toggle title=’What is the minimum number of shareholders?’ tags=” custom_id=” av_uid=’av-lluky3ve’ sc_version=’1.0′]

There must be at least (2) shareholders

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[av_toggle title=’Are a fiscal address and legal representation required?’ tags=” custom_id=” av_uid=’av-llukykdc’ sc_version=’1.0′]

Yes, a fiscal address and legal representation are mandatory to register company in El Salvador.

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El Salvador company incorporation costs ultimately depend on the services you require from Fionza Consultants.

Our services include El Salvador company set up, corporate bank account opening, accounting, and tax services as well as provision of nominee directors and shareholders.

Fionza Consultants strives to be as transparent about our fees as possible and all engagement fees will be clearly stated in our appointment letter prior to the start of the engagement.

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Register company in El Salvador

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