Company Forms in El Salvador
The forms compared
| Form | Owners | Minimum capital | How it is formed | Auditor |
|---|---|---|---|---|
| Corporation (S.A. de C.V.) | At least 2 shareholders | USD 2,000, 5% paid at formation | Public deed before a Salvadoran notary | Required |
| Simplified joint-stock company (S.A.S.) | 1 or more shareholders | $1, paid within 2 years | Registry of Commerce form, no deed | Not required for micro-enterprises |
| Limited liability company (Ltda.) | At least 2 partners | USD 2,000, 5% of each share paid | Public deed before a Salvadoran notary | Check with your adviser |
| Branch of a foreign company | The foreign parent company | Enough for its activity; capital entry registered with the ONI | Registration of the parent's documents at the Registry of Commerce | Accounting and filings as a local company |
| Sole trader | One individual | None | Business licence (matrícula) at the Registry of Commerce | Certified balance once assets reach USD 34,000 |
| Cooperative | At least 15 members, one vote each | No legal minimum; 20% of subscribed capital paid | Founding assembly, registered with INSAFOCOOP | Supervisory board (Junta de Vigilancia), with INSAFOCOOP oversight |
Source: Commercial Code, consolidated text (Legislative Assembly, PDF, in Spanish); Decree No. 905 of 6 December 2023 reforming the Commercial Code (Legislative Assembly, PDF, in Spanish); PwC: Doing Business in El Salvador 2026; National Registry Centre (CNR): Registry of Commerce services and fees; General Law on Cooperative Associations (Superintendency of the Financial System, in Spanish)1,2,3,4,6
Which one to choose
- One foreign owner: the S.A.S. is the only commercial company that one shareholder can form alone. A corporation or limited liability company needs at least two.
- Investors, banks or later sale of shares: the corporation is the classic vehicle. S.A.S. shares cannot be listed or traded on the stock exchange.
- A foreign group that wants to keep one legal entity: a branch is registered as part of the foreign parent rather than as a new Salvadoran company.
- A small business run by one person: a sole trader registers a business licence; the same person can also form an individual limited liability enterprise (E. de R. L.) to separate business assets.
- Producers, housing or service groups run by their members: a cooperative, under its own law and supervisor.
Source: Commercial Code, consolidated text (Legislative Assembly, PDF, in Spanish); Decree No. 905 of 6 December 2023 reforming the Commercial Code (Legislative Assembly, PDF, in Spanish); PwC: Doing Business in El Salvador 2026; National Registry Centre (CNR): Registry of Commerce services and fees; General Law on Cooperative Associations (Superintendency of the Financial System, in Spanish)1,2,3,4,6
Variable capital ("de C.V.")
Any company can adopt the variable capital regime. It then adds "de capital variable" or "de C.V." to its name, can raise or reduce capital above a fixed minimum without amending its deed each time, and records every change in a capital register. Shares of variable capital companies are always registered (nominative). This is why most corporations are written "S.A. de C.V.".1
Rules that apply to all
- Every company and sole trader needs a business licence (matrícula de empresa) from the Registry of Commerce, renewed every year, and must register each branch or shop within 60 days of opening it.
- A business with no valid matrícula can be temporarily closed after a 30 working day warning.
- Companies deposit their yearly financial statements at the Registry of Commerce.
- Foreign shareholders do not need a local partner, but some activities are reserved to Salvadorans and Central Americans.
Source: Commercial Code, consolidated text (Legislative Assembly, PDF, in Spanish); National Registry Centre (CNR): Registry of Commerce services and fees; PwC: Doing Business in El Salvador 20261,4,3
Frequently Asked Questions
Which company forms do foreign investors use in El Salvador?
Foreign investors most often choose between a corporation (S.A. de C.V.), a simplified joint-stock company (S.A.S.) and a branch of a foreign company.
Can one person form a company in El Salvador?
Yes, through a S.A.S. Since a reform in force from February 2024, a S.A.S. can have a single shareholder. Every other commercial company needs at least two partners or shareholders.
What is the minimum capital of a corporation?
A corporation and a limited liability company need at least USD 2,000 of capital. A S.A.S. can start from $1.
The company forms
Corporation
Two shareholders, USD 2,000 capital, a notarial deed and an external auditor.
2 Minimum shareholders, individuals or companies of any nationality
Read more
Simplified joint-stock company
One shareholder, capital from $1, a registry form instead of a deed.
1 Shareholder is enough, an individual or a company
Read more
Limited liability company
Two partners, USD 2,000 capital, managers and closed ownership.
2 Minimum partners to form the company
Read more
Branch of a foreign company
Parent documents, a resident representative and capital registered with the ONI.
USD 12,000 Minimum branch capital stated by PwC
Read more
Sole trader
A business licence in your own name, yearly renewal and accounting thresholds.
USD 12,000 Assets below which a small trader is exempt from most merchant duties
Read more
Cooperative
At least 15 members, one vote each, registered with INSAFOCOOP.
15 Minimum founding members
Read more
Sources
- Commercial Code, consolidated text (Legislative Assembly, PDF, in Spanish)
- Decree No. 905 of 6 December 2023 reforming the Commercial Code (Legislative Assembly, PDF, in Spanish)
- PwC: Doing Business in El Salvador 2026 (PDF)
- National Registry Centre (CNR): Registry of Commerce services and fees (in Spanish)
- National Registry Centre (CNR): simplified joint-stock companies (in Spanish)
- General Law on Cooperative Associations (Superintendency of the Financial System, in Spanish)
Figures checked 8 November 2026. Prepared by InvestSalvador.com for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.
