Branch of a Foreign Company in El Salvador
Documents for the Registry of Commerce
- The articles or by-laws showing the company is validly formed in its home country, with a certified Spanish translation made before a Salvadoran notary when they are in another language.
- A resolution of the shareholders or board approving the branch and appointing its legal representative.
- A power of attorney setting out the representative's powers clearly. The representative must reside permanently in El Salvador.
- Proof that enough capital for the activity has entered the country, through the foreign investment register of the Ministry of Economy (ONI).
- An initial balance sheet of the branch, certified by a public accountant authorised in El Salvador.
- An undertaking to submit to Salvadoran law, courts and authorities for acts in El Salvador.
Source: Commercial Code, consolidated text (Legislative Assembly, PDF, in Spanish); PwC: Doing Business in El Salvador 2026; National Registry Centre (CNR): Registry of Commerce services and fees1,2,3
The capital is wired to a local bank to obtain the "Comprobante de ingreso de divisas", which the ONI needs; see foreign investment registration.2
Capital
The Commercial Code asks for capital sufficient for the branch's activities, without naming an amount. PwC's Doing Business guide states a minimum of USD 12,000. Later increases, reductions or closure are registered first with the Ministry of Economy and then at the Registry of Commerce.1,2
After registration
- The Registry enters the branch and its representative's power and issues its business licence (matrícula), which is renewed every year.
- The branch registers with the Ministry of Finance (DGII), the statistics office (ONEC), the Ministry of Labour, the municipality, the ISSS and a pension fund (AFP).
- To close the branch, the Registry asks for a Ministry of Economy cancellation, tax clearance and the last financial statements on file.
Source: Commercial Code, consolidated text (Legislative Assembly, PDF, in Spanish); PwC: Doing Business in El Salvador 2026; National Registry Centre (CNR): Registry of Commerce services and fees1,2,3
Branch or subsidiary
- Branch: no new company is formed; the foreign parent is registered to operate in El Salvador.
- Subsidiary: a new Salvadoran company, such as a corporation or a simplified joint-stock company, owned by the parent.
- Moving the domicile: since the 2024 reform, a foreign company can also move its domicile to El Salvador and keep its legal personality, by a deed that adapts its articles to a Salvadoran company form.
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)1,4
Frequently Asked Questions
Can a foreign company open a branch in El Salvador?
Yes, a foreign company can trade through a branch registered at the Registry of Commerce, as long as its home law allows it. The branch has the same tax and commercial rights and duties as a local company.
Does a branch need a local representative?
Yes. The branch needs a legal representative who lives permanently in El Salvador.
What capital does a branch need?
Enough capital for its activity, wired to a local bank and registered with the ONI. PwC states a minimum branch capital of USD 12,000.
Sources
- Commercial Code, consolidated text (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)
- Decree No. 905 of 6 December 2023 reforming the Commercial Code (Legislative Assembly, PDF, 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.
