How to Register/Create a Company in El Salvador?

El Salvador is an overlooked, yet growing economy in Central America. El Salvador’s steady economic growth and its diverse, unexplored and unexploited markets create a very unique atmosphere for new businesses in the region. If you have never considered El Salvador as a country ripe with business opportunities, perhaps now is the time. 

Keep reading and discover how to register/create a company in El Salvador. 

How to form a company in El Salvador? What are the 3 Steps to Register Your Company?

company registration el salvador

In El Salvador, there are numerous different legal entity structure; Limited Liability Company, Public Limited Company, a branch or a representative office.

The company registration process in El Salvador varies greatly depending on the type of legal entity you want to create. Below, you will find some of the general steps and requirements needed to get your business up-and-running in El Salvador. 

Type of company

When forming a company in El Salvador, you can choose between a Limited Liability Company, Public Limited Company, a branch or a representative office. Please note that representative offices cannot do any direct business within El Salvador; only promote and connect clients with its company abroad.

Register your Company

After choosing the type of company you wish to create, it’s time to register it; you will need a local lawyer to set the Incorporation Deed. Once you have the incorporation deed legalized, you must register the company before several government entities: 

  • Ministry of Finance – who will provide your company with the following:
    • Income Tax ID (NIT)
    • Invoices Correlative Registration
    • Value-Added Tax ID 
  • Municipality Hall Registration
  • Registry of Commerce
  • Statistics and Census Office Registration

Additionally, your company and its employees must be registered with:

  1. Institute of Social Security of El Salvador
  2. Pension Fund Administration

Accountability Legalization For Firms in El Salvador 

After all of the registrations have been completed, your company must legalize its accounting system, accounting books and tax books. This has to be done by an authorized local public accountant and registered with the Ministry of Finance (which will authorize you to produce the fiscal stationery).

Remember that for all steps in the registration process, there will be several forms and documentation required to be completed. Additionally, some payments and initial taxes may be required depending on the type of company you are forming and the type of business activity which you will be involved with. 

 

Do You Want More Information About Doing Business in El Salvador?

If you are interested in commencing business activities in El Salvador, it is recommended to form an alliance with a local partner who can assist you to navigate the local business environment. Biz Latin Hub has an experienced team and can assist you with all commercial matters. Get in contact with Craig here and see how we can support you and your business in El Salvador. 

 

Discover how a partnership with a local firm can greatly support your business plans in Latin America. 

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