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How do I start a business in El Salvador?

Starting a business in El Salvador is relatively straightforward. The most common entity for foreigners is a Sociedad de Responsabilidad Limitada (SRL), similar to an LLC. Here's the process: hire a Salvadoran attorney to draft your articles of incorporation (escritura de constitucion). You'll need a minimum of 2 shareholders (can be foreign), a registered address in El Salvador, and minimum capital of $2,000. The attorney files with the Registro de Comercio, obtains your NIT (tax ID) from the Ministry of Finance, and registers you with the municipal alcaldia. The whole process takes 2-4 weeks and costs $1,500-3,000 in legal fees. You'll also need to register for IVA (sales tax) if your annual revenue exceeds $5,714. A local accountant is essential for monthly tax filings. The government has been actively courting foreign investment, especially in tourism, technology, and Bitcoin-related businesses.

Talk to a local expert

E
Edgard

Edgard is the owner of K59 Surf Resort and a seasoned real estate investor with deep roots in El Salvador's coastal property market. He has spent years building and growing hospitality businesses along the Pacific coast, and has hands-on experience navigating property purchases, business formation, permitting, and construction in El Salvador. Edgard advises fellow investors and entrepreneurs on the realities of doing business in the country ??? the opportunities, the challenges, and the local knowledge that makes the difference. Reach out if you're considering investing in El Salvador's booming surf and tourism economy.

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