What Motivates You to Invest in El Salvador?

  • The cost of establishing business in El Salvador is considered to be low in comparison to other countries in the same region.
  • Investing in El Salvador is done using the US dollar, which in turn reduces the possibility of economic inflation.
  • The country provides tax incentives to companies established in El Salvador.
  • Due to countries strategic location, factory owners in El Salvador can ship their goods to cities in both North America and South America.
  • The investment law of El Salvador guarantees quick procedures and equal treatment for all investors.
  • El Salvador’s labor law takes both workers’ rights and employers’ interest into consideration.

Also read: A Simplified Definition of Commercial Law

What are the Procedures for Establishing a Company in El Salvador?

  • Depositing the company’s capital in a bank account and obtaining a document to prove the deposition.
  • Choosing a company name.
  • Preparing the company’s articles of association.
  • Paying the incorporation taxes.
  • Registering the company at the municipality to complete the tax procedures.
  • Create a seal for the company.

Also read: The Importance of Having a Commercial Lawyer Before Starting Your Investment

Types of Companies in El Salvador

Branch of a Foreign Company

Its role is limited to carrying out commercial transactions only. It is only an extension of the parent company.

Public Limited Company

It consists of at least two partners and one director. A legal auditor is required for tax procedures.

Also read: The Most Important Branches of Commercial Law

Limited Liability Company

The responsibility of each partner is limited to the amount of their contribution to the capital.

Representative Office

It is created by the parent company for purposes such as commercial marketing and promoting the company’s activities. This office is not permitted to do business.

Also read: The Importance of Commercial Law