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Company formation in El Salvador
Comprehensive assistance in company formation, including banking services
How to register a company in El Salvador
1
Document submission
You submit to us necessary documents of the future founders and directors for the purposes of company registration in El Salvador and opening a bank account in El Salvador
2
Payment of services
Payment of our services for registering a company in El Salvador
and/or bank account assistance in El Salvador
and/or bank account assistance in El Salvador
3
Company formation
We register a new company in El Salvador for you. Upon completion of the registraion corporate documents are either delivered to you or submitted to a bank for the subsequent opening of a bank account
4
Bank account opening
In case you request an assistance with a bank account, we arrange an interview at the bank for you, inform you about the date of the visit and accompany you on your way to the bank. After the bank account is opened and active you receive corporate documents of the registered company in El Salvador as well as the access to the bank account
Key aspects to consider prior to incorporating a company in El Salvador
Registering a company in El Salvador allows to conduct a wide range of business activities based on cryptocurrency.
1. Founders that would like to register a company in El Salvador can either be resident or non-resident in El Salvador. Founders can be either individuals or legal entities.
2. A resident or a non-resident individual can be a director in El Salvador. It is not required to register a company in El Salvador with a resident individual as one of its shareholders or directors. However, it is required to register a company in El Salvador with a resident legal representative.
3. One individual can register a company in El Salvador and simultaneously be a shareholder and a director in this company if such company is registered as a Ltda./S.A. de C.V. (a limited liability company/corporation).
4. There is no requirement for creating substance in El Salvador - no need to hire local employees or rent an office in order to register a company in El Salvador or to conduct business in El Salvador.
5. Minimum share capital that is required to register a company in El Salvador as a Ltda./S.A. de C.V. (a limited liability company/corporation) is USD 2,000. In order to register a company in El Salvador it is required to pay 5% of the above mentioned share capital. The rest is subject to payment within 1 year after the company registration in El Salvador.
6. Information about company founders, shareholders and directors after company registration in El Salvador is complete is publicly available in the state corporate register.
7. We can help you register a company in El Salvador as well a s open a corporate bank account remotely, on the basis of a power of attorney.
2. A resident or a non-resident individual can be a director in El Salvador. It is not required to register a company in El Salvador with a resident individual as one of its shareholders or directors. However, it is required to register a company in El Salvador with a resident legal representative.
3. One individual can register a company in El Salvador and simultaneously be a shareholder and a director in this company if such company is registered as a Ltda./S.A. de C.V. (a limited liability company/corporation).
4. There is no requirement for creating substance in El Salvador - no need to hire local employees or rent an office in order to register a company in El Salvador or to conduct business in El Salvador.
5. Minimum share capital that is required to register a company in El Salvador as a Ltda./S.A. de C.V. (a limited liability company/corporation) is USD 2,000. In order to register a company in El Salvador it is required to pay 5% of the above mentioned share capital. The rest is subject to payment within 1 year after the company registration in El Salvador.
6. Information about company founders, shareholders and directors after company registration in El Salvador is complete is publicly available in the state corporate register.
7. We can help you register a company in El Salvador as well a s open a corporate bank account remotely, on the basis of a power of attorney.
Cost of services
Formation of a Ltda./S.A. de C.V.
Timeframe - 5 business days
Timeframe - 5 business days
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Advantages of incorporating a company in El Salvador
Attractive business-environment
- Bitcoin was officially recognized as a legal tender in El Salvador, which allows for conducting a wide range of business activities based on cryptocurrency
- El Salvador has many free trade agreements with CAFTA-DR, as well as with Mexico, EU and South Korea
- 17 free trade zones that provide corporate income tax, value added tax, import and export incentives
- Geographic location of El Salvador allows to establish maritime trade with North, Central and South American states, as well as with Asian states, Australia and New Zealand
Stability and security
- Political and financial stability
- Comprehensive personal security
- Investment protection
Tax benefits
- Low dividend withholding tax rate - 5%
- Corporate income tax exemption for conducting business in one of 17 free trade zones
No foreign exchange controls
- El Salvador state regulations do not impose foreign exchange controls. Individuals and business-entities, either resident or non-resident in El Salvador may open bank accounts in local banks in any currency
Ease of establishing and doing business
- 100% foreign ownership of a company in El Salvador is available
- It is possible to register a company in El Salvador remotely
More about El Salvador
El Salvador is located in Central America and borders Guatemala and Honduras. The capital city of El Salvador is San Salvador, the largest city and the location of key government institutions. The territory of El Salvador amounts to 21,041 square kilometers.
El Salvador has access to the Pacific Ocean.
Population of El Salvador currently amounts to around 6,4 million people.
El Salvador has access to the Pacific Ocean.
Population of El Salvador currently amounts to around 6,4 million people.
Official currency of El Salvador is the United States dollar (USD).
GDP of El Salvador currently amounts to more than USD 26 billion. In 2018 the growth of the state GDP amounted to around 2,5%.
Along with agriculture and industrial production the service industry gained traction. In 2004 El Salvador signed a free trade agreement with the USA, which substantially increased its export income. The industrial sector amounts to 20% of the GDP and includes the production of alcohol, canned foods, organic fertilizers, cement, chemical products, pharmaceuticals, cigarettes, shoes, textile products, petroleum product and electronics. The primary export destinations of El Salvador are the USA, Guatemala, Costa-Rica, Honduras, Nicaragua, Mexico and China.
GDP of El Salvador currently amounts to more than USD 26 billion. In 2018 the growth of the state GDP amounted to around 2,5%.
Along with agriculture and industrial production the service industry gained traction. In 2004 El Salvador signed a free trade agreement with the USA, which substantially increased its export income. The industrial sector amounts to 20% of the GDP and includes the production of alcohol, canned foods, organic fertilizers, cement, chemical products, pharmaceuticals, cigarettes, shoes, textile products, petroleum product and electronics. The primary export destinations of El Salvador are the USA, Guatemala, Costa-Rica, Honduras, Nicaragua, Mexico and China.
Main business activites among foreign entrepreneurs in El Salvador are:
Restricted for foreign entrepreneurs are the following business activities:
- cryptocurrency business
- energy
- production of electricity
- textile industry
- transport infrastructure.
Restricted for foreign entrepreneurs are the following business activities:
- telecommunications
- television, radio
- postal services
- banking and certain financial services
- air transport.
- Corporate income tax - 30%. Tax returns are filed on an annual basis. Advance income tax payments are made on an annual basis
- Dividend withholding tax - 5%
- Interest withholding tax - 20%
- Royalties withholding tax - 20%
- Capital gains tax - from 10 to 30%
- VAT - Standard tax rate 13% or the reduced rate of 0% or tax exempt. Tax returns are filed on a monthly basis
- Personal income tax - from 0% up to 30%.
Key types of companies in El Salvador are the following:
1. General partnership (Sociedad en Nombre Colectivo - S. en N.C.)
2. Limited partnership (Sociedad en Comandita Simple - S. en C.S.)
3. Partnership limited by shares (Sociedad en Comandita por Acciones - S. en C. por A.)
4. Limited liability company (Sociedad de Responsabilidad Limitada de Capital Variable - Ltda.)
5. Public limited company (Sociedad Anónima - S.A.)
6. Branch of a foreign company (Sucursal)
Individuals and legal entities, either resident or non-resident in El Salvador can register these companies in El Salvador
To receive a detailed description of the procedure of registering a company in El Salvador and information about documents necessary to register a company in El Salvador please contact our experts.
1. General partnership (Sociedad en Nombre Colectivo - S. en N.C.)
2. Limited partnership (Sociedad en Comandita Simple - S. en C.S.)
3. Partnership limited by shares (Sociedad en Comandita por Acciones - S. en C. por A.)
4. Limited liability company (Sociedad de Responsabilidad Limitada de Capital Variable - Ltda.)
5. Public limited company (Sociedad Anónima - S.A.)
6. Branch of a foreign company (Sucursal)
Individuals and legal entities, either resident or non-resident in El Salvador can register these companies in El Salvador
To receive a detailed description of the procedure of registering a company in El Salvador and information about documents necessary to register a company in El Salvador please contact our experts.
Send a request for company formation in El Salvador
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Phone: +44 20 8157 4037
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128 City Road,
London, EC1V 2NX
Phone: +44 20 8157 4037
Email: request@pil-services.com
