Set Up Business in El Salvador and Company Registration
Opening a business in El Salvador is about operating in a free market, that has an export-oriented economy that has a strategic location. El Salvador is located between North and South America, and they also have a population of about 5.5 million with an economic GDP of $25.8 billion. The US per capita income is $4,273 yearly. It has actually become easier to open a business in El Salvador because its economy is one of the freest in Latin America. There is macroeconomic stability because it uses the US dollar as the national currency and it is open to trade and foreign investment. They did not put any restriction on merges and any foreign ownership, and on acquisitions and joint ventures. Then, find out more about why you should set up a business in El Salvador.
Important Things in El Salvador Company Registration
After deciding on the kind of company you want to create, you can already register it. Then, all you need is a local lawyer for the Incorporation Deed. After it has become legalized, your company should register to these government entities:
- Ministry of Finance – It will provide your company with income tax ID (NIT), value-added tax ID, invoice correlated registration, registry of commerce, municipality hall registration, and statistics and census office registration.
- The employees of your company should be registered to Pension Fund Administration and Institute of Social Security of El Salvador
Why Set Up a Business in El Salvador
The trade opportunities are unrivalled – There are important trade opportunities that entrepreneurs can get involved within El Salvador, both in Central and Latin America. The country boasts trading in the Central American Common Market.
Market opportunities – El Salvador is a steadily growing market for the goods and services offered by the USA. These US companies are taking advantage of the CAFTA-DR free trade agreement. This is in order to get more exports in El Salvador and Central America as well.
Among US’ top sectors, the Salvadorean market’s top exporters are Dental Equipment, Automotive Parts and Service Equipment, Food Processing, Packaging Equipment, and Travel and Tourism.
The government of El Salvador currently has major infrastructure projects that are being developed like La Union Energy Generation, Regional Highway Interconnections, Regional Telecommunication Interconnection, and Regional Electric Grid Interconnection.
Fiscal Incentives are Attractive – In order to get more interested investors in El Salvador, they have created and reformed laws that have an excellent impact on investment. They have a lot of the fiscal benefits to local and foreign investors that do business in their country. Some of these reforms are importation tariff duties exemption, better laws for investors, and improved municipal taxes.
Their labour force is productive – They have a young and productive workforce, and a lot of the population are professionals and technicians in varied areas. In addition, these individuals can develop more abilities by being part of international companies in different areas like service, agriculture and manufacturing.