WashingtonRise Logo

LLC Free Zone Company PLC LP Branch Office Rep Office
Local Name SRL Empresa de Zona Franca SA SPNC Sucursal Oficina de representación
Company Setup Time 15 days 15 days 15 days 15 days 20 days 20 days
Bank Account Opening 15 days 15 days 15 days 15 days 15 days 15 days
Government Grants Available Yes Yes Yes Yes No No
Government Contracts Bidding Yes Yes Yes Yes No No
Legal Liability Yes Yes Yes Yes No No
Client Required to Travel No No No No No No
Inquiry Inquiry Inquiry Inquiry Inquiry Inquiry

Corporate Structure Explained

The El Salvador limited liability company (Sociedad de Responsabilidad Limitada – SRL)

  • The LLC is one of the most common way to establish an SME. To complete its incorporation the minimum requirement is of two shareholders and at least one director. The directors and shareholders can be foreign citizen but at least one director (known as the legal representative) must be a local resident of El Salvador. The minimum issued capital is USD 2,000 and 5 % shall be deposited during incorporation whereas the remaining balance shall be deposited within twelve months after the setting up of the company in El Salvador.
  • A statutory auditor must be appointed by the Salvadorian LLCs and it shall submit yearly audited financial statements. The El Salvador corporations are liable to pay business tax on its income at the percentage of 30% per year, but only income earned from the El Salvador Company shall be taxable.

The El Salvador public limited company (Sociedad Anonima – S.A.)

  • The El Salvador Public Limited Company needs at least a capital of USD 11,450. Out of this a sum of 25 % of the share capital shall be paid into the bank account prior to the incorporation of the company. The remaining amount i.e. 75% shall be deposited into the registered account of the entity within five years of the incorporation. Moreover, a minimum of 2 shareholders and 1 director shall be appointed, who can be a local or foreign citizen. Just like an LLC, Salvadorian PLCs shall appoint 1 locally residing director and an auditor as well.

The El Salvador branch (Sucursal)

  • An El Salvador branch office can be set up by an international entity in El Salvador. The parent company shall be accountable for this branch office and its activities in the country. A legal representative shall be appointed by the branch office, who shall be a resident.

The El Salvador representative office (Oficina de representacion)

  • A representative office established in El Salvador may be fully owned by the foreign entity, but this rep office is not permitted to conduct direct sales in El Salvador. Hence, this entity may involve in;
    • Market survey and research, and
    • Promotion and marketing of the holding company.

Fast Incorporations