How to Open a Corporate Bank Account in El Salvador – Foreign Investor Guide

To open a corporate bank account in El Salvador, it is only possible when foreign investors are in the process of registering a company in El Salvador. Once the company has received its unique tax number, it can proceed to open a corporate bank account with a local financial institution. Working with a local provider will ensure you are informed on local regulations and avoid any pitfalls. El Salvador is a growing destination for international business, especially after recent tax and crypto-friendly reforms. The banking sector is adapting to global standards.

Key takeaways on how to open a corporate bank account in El Salvador

How to Open a Business Account – Step-by-Step

To open a corporate bank account in El Salvador you will need to follow these five steps:

1. Step 1: Prepare Supporting Documents
2. Step 2: Choose a Suitable Bank and Complete Application
3. Step 3: Verification and Submit Documents
4. Step 4: Deposit Minimum Amount
5. Step 5: Account Activation

Below we expore each of these steps in further detail. It’s important to note, while the bank account opening process is relatively easy and can take as little as a week, companies in El Salvador must wait between 3 to 6 months before they can make international bank transfers.

1. Prepare Supporting Documents

Assemble supporting documents, including a shareholders list that includes their personal data (Name, Address, passport number, position in the business etc). In our experience, we have learned the whole process runs smoother when required documents are to hand from the get go.

3. Verification and Submit Documents

Usually, to open a corporate account with a local bank, the head of the business will travel to El Salvador to be interviewed by a branch manager and present all the required documentation. You can avoid the in-person interview by hiring a trusted local representative with Power of Attorney to conduct the interview on the company’s behalf.

It will be required to present either original or, depending on the bank, notarized documents for the interview to comply with local financial regualtions. It is worth taking this point into consideration when contemplating which bank to choose for your intented business practice.

4. Deposit Minimum Amount

After your corporate bank account is approved you will need to make an initial contribution and deposit 5% of the initial share capital (minimum USD$ 2000) into the account. The rest will have to be paid within a year of the company’s incorporation.

5. Account Activation

Once your 5% deposit has been confirmed, you will then have access to debit cards and online banking services(depending on the bank). This will also be the moment where instructions for using online banking apps, managing wire transfers, and other financial activities will be explained.

With your account activated you can now being processing invoices, pay employees and start making El Salvador the next success in your business expansion.

What Documents Are Needed to Open a Business Account?

In El Salvador, this usually requires providing legal documentation, such as the NIT (tax ID), commercial registration certificate, ID for legal rep and shareholders, company bylaws, proof of business address, business activity description.

Banks are regulated by the Superintendencia del Sistema Financiero. KYC, AML, and in some cases FATCA compliance apply. Notarization and translation may be necessary for foreign documents.

This account allows businesses to receive payments from customers, make supplier payments, pay employee salaries, and invest excess funds:

• Copy of the articles of incorporation: This confirms the legal formation of your company.
• Certificate of good standing: This is evidence that your company is compliant with all state requirements.
• Commercial license (where applicable): Some industries may require a commercial license to operate.
• Evidence of income: This can typically be proven with a copy of the income tax declaration of the company.
• Passport copies of all shareholders and members of the company are usually required for identification purposes.

Best Banks for Business in El Salvador

It is crucial to know which banks are available within the country. El Salvador is home to several domestic banks, including Banco Agrícola, Banco Cuscatlán, and Davivienda El Salvador which are commonly used. Most banks require legal rep presence for onboarding as part of tax and accounting requirements in El Salvador.

• Abank.
• Banco America Central.
• Banco Bandesal.
• Banco Cuscatlan.
• Banco ProCredit.

It is also important to know which banks are available before you jump into the market. International banks with a presence in El Salvador include:

• Banco Agricola.
• Banco Atlantida.
• Banco Azteca.
• BICSA.
• Citibank.
• Banco Davivienda.
• Banco Industrial.
• Banco Promerica.
• Scotiabank.

Once a foreign entity has finished the incorporation process, and has decided on which bank to open an account with, there are several steps that the business must follow before the account can be activated. After completing these steps, a business will be ready to open a corporate bank account in El Salvador.

Our recommendation: We recommend that clients, as far as possible, choose a bank if they have a pre-existing relationship with it.

Additional FAQs About El Salvador Banking

Based on our extensive experience, these are the most common queries our clients have

Corporate Banking Benefits in El Salvador

A corporate bank account in El Salvador is a specialized financial account held by a business entity or corporation to manage its financial transactions and funds. It serves as a central repository for the company’s revenue, expenses, and capital. Corporate bank accounts offer various features tailored to the specific needs of businesses, such as online banking, wire transfers, and merchant services.

Despite the many challenges it faces, the small Central American nation of El Salvador is seeing modest but steady growth. The country’s GDP is projected to grow by 2.4 percent by the end of this year, and by 2 percent in 2023, according to a recent World Bank report.

The private sector remains stable. Meanwhile, the government has implemented many incentives to attract foreign investment. It’s little wonder then, that many foreign businesses and investors are considering domiciling in the country.

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Biz Latin Hub can help you open a corporate bank account in El Salvador

At Biz Latin Hub, we provide integrated market entry and back-office services throughout Latin America and the Caribbean, with offices in Bogota and Cartagena, as well as over a dozen other major cities in the region. We also have trusted partners in many other markets.

Our unrivaled reach means we are ideally placed to support multi-jurisdiction market entries and cross border operations.

As well as knowledge about banking in El Salvador, our portfolio of services includes hiring & PEO, accounting & taxation, company formation, bank account opening, and corporate legal services.

Contact us today to find out more about how we can assist you in finding top talent, or otherwise do business in Latin America and the Caribbean.

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