The establishment of a company in El Salvador is relatively straightforward and quick to complete. The following outlines the basic requirements for establishment:

• Choose a unique name for the company and perform search at the Registry of Commerce to confirm its availability
• Deposit initial capital of at least 5% of the company's capital in an El Salvadoran bank and obtain proof of deposit in the form of a certified check payable to the name of the company
• Notarize the articles of association, which must include:
  • Name of the company
  • Purpose of the company
  • Term of the company
  • Capital stock amount
  • Particulars of the company shareholders
  • Register the company with the Registry of Commerce

The typical time to complete registration is 7 days

Branch Office

In order to establish a branch office in El Salvador, the following steps must be taken:

• Appoint a representative or attorney in El Salvador to file the branch establishment request with the National Office of Investment
• Submit the request including the following documents notarized and legalized by the Salvadoran consulate:
  • Certificate of incorporation of the parent company
  • Documents supporting that the foreign company has approved and authorized the establishment of a branch office in El Salvador
  • Power of Attorney granted for the appointed representative of the company in El Salvador
  • Evidence of registered capital of the branch of at least USD 11,428.57, including Initial Balance Sheet certified by a local public accountant/auditor reflecting the capital