Phone: +44 20 3807 0556
Email: info@mevconsultants.com
Email: info@mevconsultants.com
Register a company in El Salvador
Company incorporation, bank accounts, accounting services in El Salvador
Registration packages
Services
Essential
Standard
Premium
Company registration (S.A. de C.V.)
Annual registered address
Notary services and company seal
Remote corporate bank account
Accounting services
Start your company in El Salvador
We will contact you soon
How you can register a company in El Salvador with us
Submit shareholder and director information to our firm with a signed power of attorney
Settle a payment for registration and banking assistance
Receive corporate documentation of the registered company and access to the corporate bank account of your company
Key details 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. El Salvador has a population of 6,4 million people.
Corporate taxation, VAT taxation, Personal taxation
- Corporate income tax - 30%
- 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 a reduced rate of 0%
- Personal income tax - from 0% up to 30%.
The following are the most common types of companies to incorporate a company in El Salvador as:
- Limited liability company (Sociedad de Responsabilidad Limitada de Capital Variable - Ltda.)
- Public limited company (Sociedad Anónima - S.A.)
- General partnership (Sociedad en Nombre Colectivo - S. en N.C.)
- Limited partnership (Sociedad en Comandita Simple - S. en C.S.)
- Partnership limited by shares (Sociedad en Comandita por Acciones - S. en C. por A.)
- Branch of a foreign company (Sucursal).
- Individuals or legal entities that are intending to register a company in El Salvador can either be resident or non-resident in El Salvador.
- A resident or a non-resident individual can be a company director in El Salvador. It is, however, required to set up a company in El Salvador with a resident legal representative.
- At least 2 shareholders are required in order to register a company in El Salvador if such company is incorporated as a Ltda./S.A. de C.V. (a limited liability company). An individual shareholder can simultaneously become a director of this company.
- It is necessary to receive a personal tax ID in El Salvador for every foreign shareholder and director in order to incorporate a company in El Salvador.
- It is not required to create substance (resident employees, office space) in El Salvador in order to establish a company in El Salvador or to conduct business in the country.
- Minimum share capital that is required in order to start a company in El Salvador as a a Ltda./S.A. de C.V. (a limited liability company) is USD 2,000. In order to register a company in El Salvador it is necessary to contribute 5% of this share capital. The rest has to be paid within 1 year after the company registration in El Salvador.
- S.A. de C.V registration takes between 3 and 5 business days with the bank account taking up to 5 business days.
- Details of company founders, shareholders and directors after company registration in El Salvador is complete is publicly available in the state corporate register.
- With our service you can register a company and open a corporate bank account completely remotely in El Salvador upon a power of attorney.
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.
Foreign entrepreneurs expand to El Salvador and seek to incorporate a company in El Salvador in order to conduct business in the following sectors:
- cryptocurrency business
- energy
- production of electricity
- textile industry
- transport infrastructure.
Benefits of registering a company in El Salvador
Business climate
- 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
- Political and financial stability
- Comprehensive personal security
- Investment protection
Tax incentives
- Dividend withholding tax rate is 5%
- Free trade zones that provide corporate tax incentives
- Double tax treaties with several jurisdictions
Ease of doing business
- Both the company and the bank account can be opened completely remotely
- No foreign exchange controls
Register your company in El Salvador
We will contact you soon
© MEV Consultants. All Rights Reserved.
Core Services
All Regions
Terms & Services