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What is the process for forming an LLC in El Salvador?

The Salvadoran equivalent of an LLC is called a Sociedad de Responsabilidad Limitada (SRL). Formation requires: at least 2 partners (socios), who can be foreign individuals or entities; minimum capital of $2,000 USD (deposited in a local bank); and a registered office address in El Salvador. Your attorney prepares the articles of incorporation (escritura de constitucion), which define the company name, purpose, capital structure, and management. This document is signed before a notary and filed with the Registro de Comercio. Next steps: obtain your NIT (tax ID number) from the Ministerio de Hacienda, register with the Direccion General de Estadisticas y Censos, register with the ISSS (social security) and AFP (pension) if hiring employees, and obtain a municipal business license from the local alcaldia. Total timeline is 15-30 business days. Annual corporate tax filings are required even if the company has no revenue.

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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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