El Salvador

 El Salvador

Official Name: The Republic of El Salvador

               San Salvador

        Spanish

           United States dollar (USD)

Beschreibung El Salvador on the globe (Americas centered).svg

OUR SERVICES;                     

  • Consultation (in person, online, phone)
  • Helping to prepare your documents
  • Start to finish your company registration process
  • Immigration services

El Salvador

El Salvador is the smallest country in Central America, with a population of about 6 million living in 14 provinces. El Salvador is bordered by Honduras to the north, the Pacific Ocean to the south, and Guatemala to the west. The country includes vast mountain ranges along the borders of Honduras. El Salvador has a warm, humid climate with more than 300 rivers, navigable rivers, devastating earthquakes, volcanic eruptions, and several lakes.

General Questions 

Does El Salvador have free zones?
Yes.

What is the corporate income tax in free zones?
Zero.

What is the corporate income tax?
30%

What type of company has the lowest capital in El Salvador and how much?
The Limited Liability Company (Ltda.)  $ 100

Can company ownership be 100% foreign?
Yes. No need to have a local partner.

How long does it take to register a company in El Salvador?
One Month

What is the approximate cost of registering a company in El Salvador?
About $ 12,000

Should company executives reside in El Salvador?
One of the managers must be based in El Salvador. Otherwise they have to hire a local representative.

The benefits of company registration in El Salvador

  • A limited company can register with any nationality.
  • The foreign investors can establish manufacturing companies that has zero of corporate income tax and VAT for trading internationally.
  • There is no restriction for foreigners to do international trading.
  • Stability and security for investors because using of USD currency in El Salvador.
  • Member of free trading agreement with USA, Dominican Republic
  • Junction between USA and Asia countries for export and import

The disadvantage of company registration in El Salvador

  • One of the company’s executives must be based in El Salvador. Otherwise, they must hire a lawyer or local representative
  • All company documents must be translated into the official language of the country, which is Spanish, which will be very time consuming.
  • Conversations with company employees and government employees are in Spanish, which can be difficult for company executives.
  • The sales tax on the company’s products in the country is 30%, which is higher than in Latin American countries.
  • El Salvador, with a population of 6 million and an average income of $ 500 a month, shows low purchasing power.
  • El Salvador’s 109th place in the global competition index indicates theft and crime, inefficient bureaucracy and low capacity for innovation.

Type or company registration in El Salvador

  • The Limited Liability Company (Ltda.)
  • The Public Limited Company (S.A de C.V).
  • The Foreign Branch Office (Sucursal)

The company registration process 

  • Submit a company registration application
  • Fill out the F210 form
  • Determining the name and obtaining confirmation of the company name from the General Office of Statistics and Census
  • Preparation of the company’s articles of association with the following details:

company name
Company type
Identify areas of activity
The names of the company’s shareholders with their share
Names of company managers
company address

  • Registration of articles of association in the company registration office along with complete documents of shareholders and managers
  • Payment of all administrative and legal costs of company registration
    Open a bank account for the company
  • File a case in the finance ministry
  • File a case with the tax office
  • Registration at the Salvador Institute for Social Security (ISSS)
  • File a case in the local municipality
  • File a case in the Commerce Department
  • Registration of the company in the Statistics and Census Office
  • Preparation and adjustment of the company’s balance sheet by the accountant and sealing.