Register a Company in El Salvador with Block3 Finance
Registering a company in El Salvador becomes a smooth process with the expert guidance of Block3 Finance. Our team handles every step of the incorporation process, allowing you to focus on growing your business. Whether you’re looking to tap into El Salvador's growing economy or take advantage of its tax benefits, we’re here to simplify the process for you.
Why Register a Company in El Salvador?
El Salvador is an emerging business hub in Central America, offering investors diverse and untapped markets. With a favorable legal framework and competitive costs, it presents a prime location for companies looking to expand in the region.
Some of the key benefits of registering a company in El Salvador include:
Easy Incorporation Process: Setting up a business in El Salvador is straightforward, with simple requirements for company registration. A Limited Liability Company (LLC) can be incorporated with just two shareholders and one director of any nationality. There’s a minimum capital requirement of only US$100. No travel is required for company registration, as the process can be completed remotely.
Free Zones: El Salvador offers free zones where foreign investors can set up manufacturing companies with exemptions on income tax and VAT for all exported products. This creates an opportunity for businesses to operate tax-free for their export activities.
No Restrictions on Foreign Trade: El Salvador’s economy uses the US Dollar as its currency, which eliminates currency exchange issues. There are no restrictions on foreign trade, providing a competitive advantage for businesses engaging in international transactions.
Cost-Effective Manufacturing: El Salvador’s strategic location, access to trade agreements (such as DR-CAFTA), and low operational costs make it an ideal destination for manufacturing companies. Two major ports facilitate trade with the United States, Asia, and Central America
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How Long Does It Take to Register a Company in El Salvador?
Block3 Finance ensures that your company registration in El Salvador will be completed within 3 weeks. We handle all aspects of the process from initial paperwork to company formation.
Once your company is registered, we will assist in opening a corporate bank account either locally or internationally, ensuring your company is fully operational within 7 weeks of registration.
Can Foreigners Own a Business in El Salvador?
Yes, foreigners can fully own a business in El Salvador. The 1999 Investments Law grants foreign investors equal treatment, allowing them to establish businesses without discrimination. Investors can freely set up companies in sectors such as textiles, business services, and more.
Types of Business Structures in El Salvador
Choosing the right company structure is vital for the success of your business in El Salvador. The most common types of business entities include:
Limited Liability Company (LLC)
Requires 2 shareholders (foreigners allowed)
1 residential director (must be a resident of El Salvador)
No minimum capital requirement
Typically used for small to medium-sized enterprises (SMEs)
Corporation (S.A.)
At least 2 shareholders
Requires at least 1 director who must be a resident of El Salvador
Minimum capital: US$2,000
Typically used by larger companies seeking to raise capital and potentially go public
Branch of Foreign Companies
Allows foreign companies to establish a presence in El Salvador
Requires local representative with full power of attorney to oversee operations
Must register with the National Investment Office and the Commercial Registry
Step-by-Step Process for Registering a Company in El Salvador
Choose Your Business Structure: We help you select the most suitable business structure based on your company’s goals and needs.
Reserve Your Company Name: We will perform a name availability search and reserve your company name with the El Salvador Registry of Commerce.
Prepare Necessary Documents: We handle the preparation and notarization of documents such as the Articles of Organization and company bylaws.
Company Registration: We submit your application to the El Salvador Registry of Commerce, ensuring all legal requirements are met.
Open a Corporate Bank Account: We assist you in opening a corporate bank account at a reputable bank, either locally or internationally.
Post-Registration Compliance: We help you with registering with tax authorities, obtaining an NIT (Tax Identification Number), and fulfilling other post-registration obligations.
Legalization and Audit: We assist with legalizing company books and hiring an auditor as required by local regulations.
Employee Registration: If applicable, we help register your employees with El Salvador’s pension fund administrators.
Minimum Regulatory Requirements for Company Formation
Director: Minimum of 1 residential director (can be a local or foreigner)
Shareholders: Minimum of 2 shareholders
Registered Local Address: A local office address is required for your business.
Company Secretary: Not required for LLCs but can be appointed if needed.
Documents Required for Company Formation in El Salvador
Company Name: Must comply with El Salvador Registry rules
Shareholder and Director Information: Passports, utility bills, and reference letters for directors and shareholders
Proof of Address: Utility bill or lease agreement
Minimum Capital: US$100 for LLCs, US$2,000 for corporations
Accounting and Tax Obligations
Corporate Tax: Standard 30% corporate income tax, with a reduced rate of 25% for income under US$150,000.
VAT: 13% standard rate, with exemptions for exports.
Social Security: Employers and employees contribute to the Social Security fund, with rates set at 7.5% for employers and 3% for employees.
Why Register Your Company in El Salvador?
Political: El Salvador offers a stable political environment with government policies designed to attract foreign investment and stimulate business development.
Economic: The country has shown impressive economic growth and is part of key trade agreements with the United States and other regions, providing access to millions of potential customers.
Social: El Salvador offers a skilled labor force with a growing economy and low labor costs, making it an attractive destination for businesses.
Legal: The legal framework in El Salvador supports businesses with a streamlined company registration process and a commitment to foreign investment.
Get Started with Company Registration in El Salvador
Block3 Finance is your trusted partner in registering your company in El Salvador. Our team will guide you through every step, from business formation to opening a corporate bank account, ensuring a hassle-free experience.
Contact us today to learn more about registering your company in El Salvador. Our team will get back to you within 24 hours.
