Variable Capital Corporations
These entities can be established with a minimum of two partners, who can be nationals, foreigners, legal entities, or natural persons.
Minimum Share Capital
The minimum share capital is $2000, with at least 5% of the share capital required for incorporation. Shareholders have a one-year period from registration of the company’s incorporation deed in the Commercial Registry to fully pay their share capital.
Requirements for Incorporating a Corporation in El Salvador
Company Name
Shareholders must agree on the company's name, which is crucial for verifying its availability in the Commercial Registry.
Identification of Shareholders
Salvadoran shareholders: Must provide their Unique Identity Document (DUI).
Foreign shareholders: Must provide a valid passport.
Certified Check
Shareholders must present a certified check from a Salvadoran bank, either for 5% of the share capital or the full share capital of $2,000
Business Activities in El Salvador
Shareholders must define the business activities the company will engage in within El Salvador, which are determined in the social pact.
Company Address in El Salvador
The company’s address in El Salvador must be determined and will be registered as the fiscal domicile.
Shareholding Proportion
Shareholders must identify the shareholding proportion each will have in the company in El Salvador, according to their contributions.
Type of Administration
- Sole Administration: A sole proprietor who acts as the legal representative and a sole alternate administrator.
- Board of Directors: Typically composed of three main directors and one to three alternates. The sole administration and the board of directors can serve for a term of up to 7 years.
Incorporation Timeline
The incorporation period for a company in El Salvador is approximately 4 to 8 business days.
