Corporation (S.A. de C.V.) in El Salvador: Shareholders

Corporation (S.A. de C.V.) in El Salvador

The sociedad anónima is the most common vehicle for larger businesses and foreign subsidiaries in El Salvador. It needs at least two shareholders, a capital of at least USD 2,000 of which 5% is paid at formation, a public deed before a Salvadoran notary and an external auditor. Most adopt variable capital and write their name as "S.A. de C.V.".

Updated November 2026 · Figures checked 8 November 2026

Formation

Name: freely chosen, different from any existing company, followed by "Sociedad Anónima" or "S.A." (and "de C.V." under variable capital). Leaving it out makes shareholders and directors personally liable.
Deed: the company is formed by public deed before a Salvadoran notary and acquires legal personality when the deed is entered at the Registry of Commerce.
Capital: at least USD 2,000, fully subscribed; at least 5% of each share payable in cash is paid at formation, and shares paid in assets other than cash are paid in full.
Online: the CNR's CreaEmpresa platform handles the registration and the first registrations with tax and labour authorities.

Source: Commercial Code, consolidated text (Legislative Assembly, PDF, in Spanish); PwC: Doing Business in El Salvador 2026; National Registry Centre (CNR): CreaEmpresa launch, July 2024^1,3,5

Management and control

Directors: one or more directors, who need not be shareholders, elected by the shareholders' meeting. With more than one, they form a board (junta directiva) with a president who has the casting vote.
Term: set in the deed, up to seven years, re-electable unless the deed says otherwise.
Representation: the sole director or the board president represents the company and signs for it, unless the deed provides otherwise.
Auditor: the shareholders' meeting must appoint an external auditor, who cannot be a director, manager or employee, or a close relative of one. A supervisory council is optional, but does not replace the auditor.

Source: Commercial Code, consolidated text (Legislative Assembly, PDF, in Spanish)¹

Costs and running obligations

Registry fee: $0.57 per $100 of capital, up to $11,428.57, when the deed is registered.
Business licence: the matrícula de empresa is renewed every year in the month the company was registered.
Accounts: yearly financial statements with the auditor's opinion are deposited at the Registry of Commerce.

Source: National Registry Centre (CNR): Registry of Commerce services and fees; Commercial Code, consolidated text (Legislative Assembly, PDF, in Spanish)^4,1

The yearly shareholder report to the Ministry of Finance and the beneficial ownership rules are explained in beneficial ownership.

When it fits

Groups with two or more owners, outside investors or plans to issue shares on the stock exchange.
Businesses that need a well-known form for banks, tenders or regulated licences.
If there is only one owner, a simplified joint-stock company avoids the need for a second shareholder.

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)^1,2

Frequently Asked Questions

What does S.A. de C.V. mean?

It stands for Sociedad Anónima de Capital Variable, a corporation with variable capital. It is the most common vehicle for larger businesses and foreign subsidiaries in El Salvador.

What are the requirements for a S.A. de C.V.?

At least two shareholders, a capital of at least USD 2,000 of which 5% is paid at formation, a public deed before a Salvadoran notary and an external auditor.

How long can directors serve?

The term is set in the deed, up to seven years, and directors can be re-elected unless the deed says otherwise. Directors need not be shareholders.

Sources

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.