This post is also available in: 繁體中文 (Chinese (Traditional)) 简体中文 (Chinese (Simplified))

Understand the Jurisdictions Setup Requirement Before Proceed Your El Salvador Company Registration

El Salvador Company RegistrationIf you are looking for El Salvador company registration services, then you have landed on the right page. At 3E Accounting, we specialize in helping businesses, and investors establish their preferred investment vehicles in various countries. If you are keen on starting a business in El Salvador, we are ready to make the process a breeze for you so that you can have your company running as soon as possible.

In our team, we have competent attorneys, tax experts, and accountants. We will ensure you comply with all requirements that will lead to smooth and successful incorporation. With us, you don’t have to worry about missing key legal steps and waiting for long before you get your certificate of registration. Kindly get in touch with us if you need more information.


Why Do Business in El Salvador?

There are many reasons why investors prefer El Salvador as an investment destination, but the major ones include the following:

  • Easy incorporation process – the requirements, as well as the process for El Salvador company registration, are simple and easy. For example, to incorporate a limited liability company, you only require two shareholders and one director of any nationality. Again, the minimum paid-up capital is only $100. Besides, it is possible to incorporate a company in El Salvador without travelling to the country.
  • The Free Zones – El Salvador has free zones where foreign investors have the freedom to start manufacturing companies that will attract free income tax and VAT for all the products that the company will export overseas.
  • No restrictions on foreign trade – in El Salvador, there are no restrictions imposed on foreign trade as well all the transactions involving foreign currencies. The dollar is the local currency, and in the absence of such restrictions, investors in El Salvador have a competitive advantage when doing business in the region.
  • The country is ideal for manufacturing companies – El Salvador is ideal for manufacturing for many reasons, with the main ones being-:
    • Low operational costs
    • A member of DR-CAFTA – this is a trade agreement between the Dominican Republic, Central American countries and the United States. It eliminates custom duty for trades between the member states.
    • Has two major ports responsible for moving millions of goods between Central America, the United States, and Asia.
  • According to the Index of Economic Freedom, El Salvador is ranked 16th freest economy in the Americas.


The Process of Company Formation in El Salvador

The process of El Salvador company formation begins with defining the company’s name. The name must be unique and not already in use by any entity in the country. The name search is conducted at the Commercial Registry. This is where you will propose at least three unique names for the search and potential registration.

According to the El Salvador Laws, two shareholders and a minimum company share capital will be necessary for the registration. The key documents at this stage will include-:

  • The personal identification documents of the shareholders
  • If shareholders are legal persons, then proof of their legal existence will be necessary.
  • Certificate of legal representation of the company

The minimum share capital to start a company in El Salvador is $2000. At least 5% of the capital will be paid at the time of the incorporation.


We Can Help You

In the incorporation, it is a legal requirement for the shareholders to be present at a public notary during the registration of the documents. However, if this is not possible, the directors can grant a power of attorney to an individual to help with the company incorporation.

At 3E Accounting, we can incorporate the company on your behalf so that you are don’t have to worry about travelling to El Salvador if you don’t want to. We have experience with the entire business formation procedures, and you can trust us to deliver your business vehicle as soon as possible. Contact us for more information on how we can help with the incorporation service.

El Salvador Company Registration