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El Salvador — Orbitax Country Chapters
2.1. Main Formation Requirements

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