{"id":11938,"date":"2023-04-28T16:24:00","date_gmt":"2023-04-28T13:24:00","guid":{"rendered":"https:\/\/prifinance.com\/?p=11938"},"modified":"2023-09-08T00:20:58","modified_gmt":"2023-09-07T21:20:58","slug":"company-registration-in-el-salvador","status":"publish","type":"post","link":"https:\/\/prifinance.com\/en\/central-america-en\/el-salvador\/","title":{"rendered":"Company Registration in El Salvador"},"content":{"rendered":"<div class=\"info-block\">\n<p style=\"text-align: justify;\">El Salvador is one of the countries in Latin America that has splendid landscapes and makes a special emphasis on renewable sources of energy. The service sector, international trade, and tourism are the most developed ones in the local economy. El Salvador is also a good business hub for investors. Establishing a company in San Salvador or in any other location in this state can instantly open the next benefits for a non-resident investor.<\/p>\n<\/div>\n<div class=\"info-block\">\n<h2>Arguments in Favor of the Jurisdiction<\/h2>\n<p style=\"text-align: justify;\"><strong>Purchasing or starting a company in El Salvador may be assessed as a potentially profitable step because this jurisdiction provides:<\/strong><\/p>\n<ul>\n<li style=\"text-align: justify;\">access to large regional and world markets;<\/li>\n<li style=\"text-align: justify;\">&#8220;&gt;openness to foreign investments;<\/li>\n<li style=\"text-align: justify;\">general ease of starting and handling a business;<\/li>\n<li style=\"text-align: justify;\">excellent modern infrastructure;<\/li>\n<li style=\"text-align: justify;\">technological hub, especially for cryptocurrencies and digital assets;<\/li>\n<li style=\"text-align: justify;\">availability of free zones (with income tax, VAT, and customs exemptions);<\/li>\n<li style=\"text-align: justify;\">convenience of international transactions in any currency, without limitations (including in cryptos).<\/li>\n<\/ul>\n<\/div>\n<div class=\"info-block\">\n<h2>Legal and Organizational Forms<\/h2>\n<p style=\"text-align: justify;\">Company incorporation in El Salvador and\/or establishing an official presence in an alternative way is possible in one of these legal forms:<\/p>\n<ul>\n<li style=\"text-align: justify;\"><em><strong>Limited liability company<\/strong><\/em> \u2013 the most popular and flexible form of doing business in El Salvador that may be established by two persons at least, whether natural or corporate. Non-residents are welcomed as well. All types of monetary and legal obligations of the shareholders are narrowed to their contributions solely. The minimal starting capital for this entity is USD 2,000.<\/li>\n<li style=\"text-align: justify;\"><em><strong>Branch<\/strong><\/em> \u2013 a good alternative to founding a separate entity in El Salvador. A branch can be established by a foreign company to carry out in El Salvador the same types of economic activities as in the country of origin. A parent company will remain 100% in charge of financing the activities and covering the potential losses of a branch.<\/li>\n<\/ul>\n<\/div>\n<div class=\"info-block\">\n<h2>How to Register a New Entity in El Salvador?<\/h2>\n<p><strong>It is possible to establish a company in El Salvador after passing through the next approximate stages:<\/strong><\/p>\n<ol>\n<li style=\"text-align: justify;\">Defining the exact list of business purposes and activities.<\/li>\n<li style=\"text-align: justify;\">Elaborating on and verifying a business name for a future enterprise.<\/li>\n<li style=\"text-align: justify;\">Collecting and arranging the details from promoters, beneficiaries, the mother company, and managers. Natural persons who are non-residents should get local Tax Identification Numbers.<\/li>\n<li style=\"text-align: justify;\">Drafting corporate documents, including a deed of incorporation and resolutions of founders.<\/li>\n<li style=\"text-align: justify;\">Depositing the amount of starting share capital (5%+).<\/li>\n<li style=\"text-align: justify;\">Paying the registration fee and lodging application documents for consideration. Forming a new entry about a registered company in the Registry of Commerce in case of positive feedback.<\/li>\n<li style=\"text-align: justify;\">Formalizing a new company to pay taxes and compulsory social security payments.<\/li>\n<li style=\"text-align: justify;\">Opening corporate bank accounts.<\/li>\n<li style=\"text-align: justify;\">Applying for and obtaining licenses if amongst the chosen business activities there are regulated ones.<\/li>\n<\/ol>\n<\/div>\n<div class=\"info-block\">\n<h2>Legal and Regulatory Landscape<\/h2>\n<p style=\"text-align: justify;\">The local investment landscape is very favorable to non-resident entrepreneurs. 100% foreign ownership is allowed. The free movement of capital is ensured as well.<\/p>\n<p style=\"text-align: justify;\">All administrative procedures for company registration and further maintenance are simplified and straightforward. There are minimal and reasonable bureaucratic formalities to fulfill. Each company registered in El Salvador should pay an annual renewal fee to keep the so-called business license active. The amount of such a fee depends on the size of the company&#8217;s assets. Certain types of business activities will still require getting licenses.<\/p>\n<\/div>\n<div class=\"info-block\">\n<h2>Taxation in El Salvador<\/h2>\n<p style=\"text-align: justify;\">Any intention to create or buy a company in El Salvador should be assessed along with the next points attributed to taxation in this state:<\/p>\n<ul>\n<li style=\"text-align: justify;\"><em>Profit tax (for businesses) \u2013 30%<\/em><\/li>\n<li style=\"text-align: justify;\"><em>Income tax (for natural persons) \u2013 30%<\/em><\/li>\n<li style=\"text-align: justify;\"><em>Value-added tax \u2013 13%<\/em><\/li>\n<li style=\"text-align: justify;\"><em>Withholding tax (for non-residents) \u2013 (A) general: (1) dividends \u2013 5% (2) interests \u2013 10% or 20% (3) royalties \u2013 20% (B) for tax havens: (1) dividends \u2013 25% (2) interests \u2013 10% or 25% (3) royalties \u2013 25%<\/em><\/li>\n<li style=\"text-align: justify;\"><em>Capital gains tax \u2013 10% or 30% depending on the case.<\/em><\/li>\n<\/ul>\n<\/div>\n<div class=\"info-block\">\n<h2>How Prifinance Attorneys Can Assist You<\/h2>\n<p style=\"text-align: justify;\">Whether you wish to buy a ready-made company in El Salvador or create a new one, Prifinance attorneys are prepared to foster the easiest realization of these business goals. Lawyers possess versatile expertise in registering businesses worldwide gained through more than 11 000 projects. Forward the details about your business plan in El Salvador and get 100% professional and personalized legal assistance.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>El Salvador is one of the countries in Latin America that has splendid landscapes and makes a special emphasis on renewable sources of energy. The service sector, international trade, and tourism are the most developed ones in the local economy. El Salvador is also a good business hub for investors. Establishing a company in San [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[350],"tags":[],"class_list":["post-11938","post","type-post","status-publish","format-standard","hentry","category-central-america-en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Registration of a company in El Salvador | Prifinance Company<\/title>\n<meta name=\"description\" content=\"We offer company formation and bank account opening services in El Salvador. New registration and ready-made options. 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