Starting a Business - El Salvador

100% foreign ownership is permitted for standard and large businesses. Foreign investors receive equal treatment with nationals under the Investment Law. The sole carve-out is micro-enterprises (≤10 employees, ≤USD 175,930 annual sales), which are reserved for nationals.

The Sociedad por Acciones Simplificada (SAS), introduced by Legislative Decree 905 (December 2023), requires as little as USD $1 in capital, payable within two years of registration. Traditional Sociedades Anónimas (S.A.) require a minimum subscribed capital of USD $2,000.

Key steps are: (1) Reserve company name with CNR; (2) Draft and notarize articles of incorporation; (3) Register with the CNR Mercantile Registry; (4) Register with Ministerio de Hacienda for NIT and VAT within 15 days; (5) Register with the municipal tax authority. A local legal representative with Salvadoran nationality or valid residency is required.

Registration through the Miempresa online portal can be completed in approximately three business days for eligible entities. Full incorporation via notarized deed and CNR filing typically takes 8–10 business days; the entire operational setup (including tax registration) generally takes around four weeks.

The SAS (Sociedad por Acciones Simplificada), enacted December 2023 via Legislative Decree 905, can be formed by a single shareholder (natural or legal person), requires only USD $1 capital, and allows digital incorporation, significantly lowering the barrier for startups and foreign entrepreneurs.

The Investment Law guarantees the unconditional right to repatriate profits, dividends, and capital without delay through the banking system. El Salvador uses the US dollar as legal tender, eliminating currency-conversion risk. A constitutional cap limits any single entity from owning more than 245 hectares of land.