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Investment & Legal Framework
Local Company with National Capital
There are 5 types of local companies: Sociedad
Anónima (S.A.) – Anonymous Company; Sociedad
de Responsabilidad Limitada (S.R.L.) – Limited
Liability Company; Sociedad en Comandita Simple
(S. en C) –Common Limited Partnership Company;
Sociedad en Comandita por Acciones (S. en C.) –
Shared Limited Partnership Company; and Sociedad
Colectiva – Collective Company.
Local Companies with Foreign Capital
All local companies, regardless if they are using
national or foreign capital, must follow the same
rules of establishment. The only difference being
that, if they are using foreign capital, it must be
registered at the National Investment Office (ONI) at
the Ministry of Economy. This is why investors are
recommended to ask for a personal consultant from
this entity to find out the different benefits regarding
their investments.
Foreign Companies or Branches
Foreign investors who are interested in carrying out
commercial transactions in El Salvador and do not
wish to create a local company may create a branch
of their company. In this case, the headquarters
is responsible for the obligations acquired by the
branch. The legal requirements for the registration
of the foreign company are the same whether the
person wants to establish his residence or establish
a branch in the country; this must be defined at the
time of the application.
The following documentation can be done at the
same time at the Commerce Registry (RCO) of
the National Registration Center, or at the National
Investment Office (ONI) of the Ministry of Economy:
1. Registration of the articles of the company, local
as well as foreign (if it is a limited corporation).
2. Registration of the specific power of attorney (if
applicable).
3. Enrollment of the company’s registration.
4. Registration of the local, agency or branch.
5. Deposit slip with the initial balance.
6. Tributary Identification Number (NIT) and tax
holder Registration Number (NRC).
7. Assignment and authorization of the issuance of
tributary documents (bills, fiscal credit documents,
remission notes, etc.).
8. Obtain an employer’s affiliation and card from the
Salvadoran Institute of Social Security and
9. Registration of the company at the Ministry of
Labor and Social Prevention.
More specific recommendations:
1. Hire a reputable lawyer and an accountant who
are properly accredited in El Salvador. Different
types of investment and business activities may
require special documentation and registrations.
2. If you are planning to open a branch in El
Salvador, obtain an operations permit from the
Superintendence of Mercantile Businesses and
Companies of the Ministry of Economy.
3. Obtain the Tributary Identification Number
form (NIT) and Tax Holder Registration from the
General Direction of Internal Taxes at the Ministry
of Treasury.
4. Obtain a commerce license and registration
of the company at the Commerce Registry at the
Department of Commerce Licenses and Commercial
and Industrial Patents. This registry can also register
patents, factory brands and copywriter rights.
5. Register the members of the Board of Directors at
the Commerce Registry as well as the senior official
of the company.
6. Obtain a Solvency Certificate from the City Hall.
7. Obtain a certification that the company is registered
at the National Direction of Commercial and Industrial
Establishments at the National Direction of Statistics
and Census.
8. Obtain a permit from the Superior Council of
Public Health if you are planning to open a company
such a laboratory.
9. Present the names of the company owners,
main investors, name of the business or business
that you own, financial statements of the company
from where it originates, to the Commerce Registry.
These documents, according to law, are published
in one of the commercial national newspapers as
public proof.
10. A very important step is the legalization of your
accounting system. Request the documentation and
then present it to the Commerce Registry and also to
the Superintendence of Mercantile Enterprises and
Companies where you must:
• Register the accounting system you intend
to utilize.
• Describe the inventory system that you wish
to use.
• Register your financial statements.
• Receive final authorization to use the accounting
system of your choice.
11. Finally register your investment at the Division
of Capital and Technology Transfer of the Ministry
of Economy.