|
Gold Service provides a wide range of business-commercial services in El Salvador and other Central American Countries, like business start-ups or company formation (Incorporation) services, Unfair Competition and Business Consulting in El Salvador, Corporate Filings, Registered Agent Services, Stock Membership Certificate, Certificate-Articles of Amendment and Certificates of good standing amoung others.
Our Service includes everything required to register El Salvador Company, Incorporate a business El Salvador, preparation and Filing the Articles of Incorporation for Your New Company in El Salvador, Starting & Running a Business, included business-commercial advice and litigation.
Corporate Services & Supplies in El Salvador.
Corporate Compliance & Document Retrievals in El Salvador.
El Salvador Registered Office.
Registered Agent Services in El Salvador.
We also offer in El Salvador Bookeeping Services, Tax Planning and Income Tax Preparation.
We also provide Non Profit Organization (NPO) Registration Services in El Salvador.
In El Salvador, companies can have natural persons or legal persons (companies, entities, NPO) as partners. A minimum of 2 partners is required to establish a Salvadoran company, and the minimum capital for the initial setup is USD 2,000.00.
Requirements for Starting a Business in El Salvador:
- Tax Identification Number - NIT - of the partners (in the case of not having one, we can
help in obtaining one),
- Personal ID Card, Resident Card or Passport of each one of the partners. In the case of being shareholders of other companies, a document of company establishment is required.
- Name with which the company will be denominated; in order to investigate with the El Salvador Commercial Office, if the name is available.
- Purpose: The main activity that the Company will be dedicated to. -
- Share Capital: Business Law in El Salvador indicate that for Salvadorans as well as for Foreigners, the Share Capital must be of USD 2,000.00. From this capital, the amount of USD 100.00 must be paid to the order of the new company with a certified check from a Salvadoran Bank. (This is the equivalent of 5% of the minimum required capital). The balance of the Share capital will be paid in a period of two years. -
- The percentage of shareholder participation for each partner; the way in which the stock will be distributed.
- Who will be the Legal Representative and who will be the substitute
- Registration of the companies at the El Salvador Commercial Office takes an average of 5 working days. -
- Companies with a share capital of USD 2,000.00 pay registration taxes of USD 57.14. -
NOTE: If the shareholders, or any of them, are/is not able to be present for the signing of the articles of incorporation, another person may do it in his/her/their/its representation through a Power of attorney hich can be signed locally or abroad. Upon request, we will send the format of said Power of Attorney at no additional cost.
INITIAL PROCEDURES TO START UP NEW COMPANIES IN EL SALVADOR
PROCEDURES OF FORMAL REQUIREMENTS AND LAW REGISTRATIONS FOR COMPANIES IN EL SALVADOR
a) OBTAINING THE INCOME TAX CONTRIBUTION NUMBER (NIT) AND THE
VALUE ADDED TAX CONTRIBUTION NUMBER (IVA), FROM THE
MINISTRY OF FINANCE.
-
File a complete Form F210
-
File a copy of the Public Deed of Constitution duly authenticated along with a copy of
the same.
-
File a copy of the Legal Representative’s credential document, duly authenticated along
with a copy of the same, or a copy of Power of Attorney granted to the proxy, duly
registered.
-
File a copy of the Legal Representative’s NIT and ID, duly authenticated.
-
Authorization to the person who will carry out the diligences, giving details of the
company and of the legal representative; and also indicating Folio from the Form 210.
-
File the NIT Receipt of Payment.
b) REGISTRATION AT THE CITY HALL
Municipality or city where the company will be domiciled.
-
File the Form for entrepreneurial processes.
-
Copy of the Public Deed of Constitution duly authenticated.
-
Copy of the Company’s NIT duly authenticated.
-
Copy of the Legal Representative’s or Proxy’s credential document duly
authenticated, along with the Legal Representative’s NIT and ID
-
File the Opening Balance Sheet in original, duly sealed and signed by a Public
Accountant duly authorized.
-
Tax payment of 0.1% over the initial capital stock. In case that a company is started up
with the minimum amount of capital stock (of $11,428.57), the amount of $11.43 will be
paid.
c) REGISTRATION AT THE GENERAL OFFICE OF STATISTICS AND CENSUS
-
File the Registration Form.
-
File a copy of the Public Deed of Constitution.
-
Copy of Company’s NIT.
-
Copy of the opening balance sheet when the application is made within the same year.
If the registration is made in a different year, a Balance Sheet as of December 31 of the
prior year must be filed.
-
Payment of $5.00 is made when the Opening Balance or Balance Sheet is prepared with
a Capital Stock of $11,428.57. When the Capital Stock is more than $11,428.58 and
less than $57,142.86, the amount of $8.00 must be paid. When the Capital Stock is more
than $57,142.87 and less than $114,285.71, the amount of $10.00 is paid. When the
Capital Stock is more than $114,285.71 and less than $228,571.43, the amount of $15.00
is paid. When the Capital Stock is more than $228,571 44, the amount of $20.00 is paid.
d) REGISTRATION AT THE REGISTRY OF COMMERCE
-
File a document for registration, signed by the Legal Representative or Proxy.
-
File the payment receipt for $125.71 as registration rights.
-
File the company’s Registration payment receipt at the City Hall where the company is
domiciled.
-
File the company’s registration at the Statistics and Census Office.
-
File the opening balance sheet, signed and sealed by a Public Accountant duly
authorized.
-
Registration of initial balance sheet which cost is $17.14.
PROCESSES TO FOLLOW WHEN EMPLOYEES ARE HIRED
a) REGISTRATION AT THE SALVADORAN INSTITUTE OF SOCIAL
SECURITY (ISSS)
-
File a complete registration Form, signed by the Legal Representative or Proxy.
-
Copy of the Public Deed of Constitution duly authenticated by a Notary Public.
-
Copy of NIT duly authenticated.
-
Copy of the Legal Representative’s credential document or Power of Attorney, duly
authenticated.
-
Copy of the Legal Representative’s NIT and ID duly authenticated.
-
File a payroll, two employees as a minimum.
-
File an sketch of location of company’s domicile.
b) REGISTRATION AT THE PENSION FUNDS ADMINISTRATOR OFFICE
(AFP)
-
File a document with all company’s details, before the selected AFP.
-
Attach copy of the company’s NIT and IVA to the selected AFP.
-
If the employees are not affiliated to any AFP, encourage them to do it with the AFP of
their preference (AFP CONFIA or AFP CRECER).
ACCOUNTING SECTION TO START UP A COMPANY
-
Elaboration of the Accounting System (description of the system, Chart of Accounts, and application manual) which has to be authorized by a certified public accountant duly registered and authorized by the Board of Accounting Profession of El Salvador.
-
Legalization of accounting books (journal book, ledger book, financial statements book, minute book, inventory book, balance book, cash book, general shareholders’ and directors’ meeting book, and capital increase/reduction book) which have to be authorized by a certified public accountant duly registered and authorized by the Board of Accounting Profession of El Salvador.
-
Legalization of tax books-IVA (Sales Book to Taxpayers, Sales Book to Consumers, and Purchase Book). Which have to be foliated and authorized by a certified public accountant duly registered and authorized by the Board of Accounting Profession of El Salvador.
-
Obtain from the Ministry of Finance, the authorization for elaborating the fiscal stationery (tax credit vouchers, final consumer invoices, tax remission notes, credit and debit notes). The Legal Representative or Proxy has to sign the application attaching a copy of company’s Public Deed of Constitution, NIT, IVA, as well as his credential document or Power of Attorney.
-
When obtaining the authorization from the Ministry of Finance, the fiscal stationery is printed, against presentation of the mentioned authorization, by one of the printing houses duly authorized by the Ministry of Finance.
IN SHORT, THE FOLLOWING REQUIREMENTS ARE MANDATORY TO A COMPANY FOR LEGAL OPERATIONS IN EL SALVADOR
-
To be registered at The Ministry of Finance.
-
To be registered at the City Hall of the municipality or city of its domicile.
-
To be registered at the General Office of Statistics and Census.
-
To be registered at the Registry of Commerce and obtain the Certificate of Registration.
-
To be registered at the Ministry which is in charge of regulate the company’s line of business.
-
To be registered as employer at the ISSS and AFP.
-
The accounting system (Description of the system, Chart of Accounts, and Application Manual).
-
Legalization of accounting books (Journal book, ledger book, financial statements book, minute book, inventory book, balance book, cash book, general shareholders’ and directors’ meeting book, and capital increase/reduction book).
-
Legalization of tax books-IVA (Sales Book to Taxpayers, Sales Book to Consumers, and Purchase Book).
-
To have at disposition the fiscal stationery duly printed (Tax credit vouchers, final consumer invoices, tax remission notes, credit and debit notes).
Our professional fees for the above mentioned procedures range between USD2,100.00 and USD2,800.00. Many of the registrations and authorizations are made once during the existence of the company.
The variation or range of professional fees depends on some conditions, such as: municipal location where the company is domiciled, the amount of folios for each accounting book to be authorized by the Certified Public Accountant, complexity of the Accounting System and its application manual, the company’s amount of capital stock.
The expenses made for tax payments, buying of books, printing of fiscal stationery, and others, will be filed to the client for reimbursement or for settling his account.
Registration of foreign subsidiaries in El Salvador
1. REQUIREMENTS
a- Articles of Association proving that the company is legally constituted in accordance with the laws of the country of origin, the document must be duly legalized by the Salvadoran Consulate or by Apostille in the country of constitution.
b. Probationary documents duly approved, such as: Minutes of the General Shareholders’ Meeting, stating that foreign subsidiaries and agencies can be opened and that the decision to operate in El Salvador has been taken.
c. Power of Attorney granted to the person who will act as the legal representative of the company in El Salvador, it will state the ample and sufficient faculties given to him/her. The Power of Attorney must be duly legalized by the Salvadoran Consulate or by Apostille in the company’s country of origin, and it has to be registered in the Registry of Commerce of El Salvador.
d. The Legal Representative must reside permanently in El Salvador.
e. The sufficient capital stock established by Salvadoran laws to Stock Companies for business operations is USD11,428.57, which will be registered in the Registry of Foreign Investment of the Ministry of Economy.
f. Initial Balance of the foreign company or subsidiary reflecting the capital stock, this balance must be certified by a Certified Public Accountant duly registered in El Salvador, which will be registered in the Registry of Commerce previous to the company’s registration.
g. Specify the nature, value, source, and function of the economic activity and date of entry of such investment to the country.
h. Bank document or foreign currency form, in original and copy, proving the transfers of funds and giving date of transfer, name of the foreign investor, function and exchange rate, seal and signature of the banking institution.
2. PROCESS OF REGISTRATION
1) Registration of Power of Attorney in the Registry of Commerce (5 days).
2) Registration of Initial Balance in the Registry of Commerce (5 days).
3) Registration of Foreign Investment in the National Office of Investments – Ministry of Economy (10 days).
4) Registration of Foreign Subsidiary in the Registry of Commerce (10 days).
3. ESTIMATED TIME OF PROCESS: THIRTY WORKING DAYS
4. PROFESSIONAL SERVICES: USD 1,150.00
Registry of Non profits organization.
REQUIREMENTS FOR ESTABLISHING AN ASSOCIATION OR FOUNDATION (NGO)
NON PROFITS ORGANIZATION IN EL SALVADOR
1. Preparation of the Regulations which will manage the Association.
2. Once the Regulations are approved, the Articles of Association is granted.
3. Preparation of Association’s list of members.
4. Election of the first Board of Directors according to the Regulations established.
5. Preparation of Accounting Books, Minute Book and Members Book; these books must be filed before the Registry Office in order to be legalized along with the Articles of Association.
Requirements for registration at the Registry Office of Non Profit Associations and Foundations
a) Application duly signed by the President of the Association and addressed to the Department of the Interior.
b) Two testimonies of the master copy of Articles of Association of the Foundation or Association to which it refers, and besides, the Regulations and the first Board of Directors duly approved, including three copies of these documents.
c) Three copies of the Regulations with separated articles.
d) Evidence of the Association’s List of Members recording their nationalities and identity cards.
e) Certification of the Minutes of Election of the Board of Directors.
f) Minutes Books for recording General Meetings of the Board of Directors, Records of Members and Accounting Books.
|
Legal Services:
|
