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Investment & Legal Framework
Beverages 10% that has been modified in the last
tributary reform, pending to be ratified. Considering
that a low percentage of the State revenue derived
from this type of taxes, they are not considered an
important source in the imposing system.
CREATION OF COMPANIES
When considering establishing a new company, the
first thing to do is to register it at the Registro de
Comercio (Commerce Registry). Businessmen, who
are interested in opening a company for the first time,
must not forget that one of the main requirements
demanded by the Registro de Comercio (Commerce
Registry) is that the company be registered. Theymust
also register the commercial establishment; in other
words, the physical place where the new business
will operate. The Commerce Registry is modern and
totally computerized with digital systems.
The institution registers over 200 companies a day.
According to article 63 of the Commerce Law, it is
established that the company must pay a registration
fee in accordance to its assets, which is reflected
on the initial balance sheet or seed capital that the
company or individual business man has.
To register a company using foreign capital the
minimum is 100,000 Colones ($11,429 USD) for
industrial businesses and 200,000 Colones ($22,857
USD) for commercial businesses; (half in both cases
for individual entrepreneurs). Registration rights
range from $125.71USD to $262.43USD.
Registration rights are paid in those banks authorized
by the Registro de Comercio (Commerce Registry).
Documentation for the registration of a company
usually takes a maximum of five working days.
This all depends on the company meeting all the
requirements.
Small and medium businesses must also legalize
and register their companies with the Registro de
Comercio (Commerce Registry) to operate legally.
Article 86, of the Registro de Comercio (Commerce
Registry) law, states that the owner of a company
or commercial establishment “is obliged to register
it within sixty days after opening the company or
commercial establishment.”
San Salvador’s overview