Simplified Joint-Stock Company (S.A.S.) in El Salvador

The S.A.S. was added to the Commercial Code by Decree No. 905 of December 2023. It is the only commercial company that one shareholder can form alone, its capital starts at $1, and it is formed with a Registry of Commerce form rather than a notarial deed. Registration and the first business licence are free until 31 December 2026.

Updated November 2026 · Figures checked 8 November 2026

How it is formed

Form, not deed: the S.A.S. is formed only with the Registry of Commerce form. No public deed or other formality is needed, and electronic signatures must be certified electronic signatures.
Name: freely chosen, followed by "Sociedad por Acciones Simplificada" or "S.A.S.".
Defaults: if the form gives no duration it is indefinite; no address means San Salvador Centro; no stated purpose means any lawful activity.
Foreign corporate shareholders attach documents proving they exist in their home country and who represents them.
Legal personality starts when the form is entered at the Registry of Commerce.

Source: Decree No. 905 of 6 December 2023 reforming the Commercial Code (Legislative Assembly, PDF, in Spanish); National Registry Centre (CNR): simplified joint-stock companies^1,2

Capital and shares

The shareholders set the capital freely from $1. It is fully subscribed at formation and can be paid after registration, within two years at most.
Contributions can be in cash, bank or e-wallet transfers, assets or work.
Different classes of shares are allowed, including preferred shares with or without votes.
Shares cannot be entered in the public securities register or traded on the stock exchange.
A S.A.S. can adopt the variable capital regime.

Source: Decree No. 905 of 6 December 2023 reforming the Commercial Code (Legislative Assembly, PDF, in Spanish)¹

Running the company

Structure: the shareholders design it freely. If the form says nothing, the shareholders' meeting or sole shareholder takes the decisions and a legal representative manages the company; that person can be the sole shareholder and does not have to reside at the company's registered address.
Meetings can be held by any technology that identifies the participants. A sole shareholder records decisions in the minute book without notices.
Auditor: not required while the S.A.S. qualifies as a micro-enterprise; required from the year it outgrows that category.
Accounts: with assets of USD 12,000 or more, the books are kept by an authorised public accountant. Yearly financial statements are deposited at the Registry of Commerce.
Disputes between shareholders go to direct settlement or arbitration if the form provides for it, otherwise to the courts.

Source: Decree No. 905 of 6 December 2023 reforming the Commercial Code (Legislative Assembly, PDF, in Spanish); National Registry Centre (CNR): simplified joint-stock companies^1,2

Fees and recent changes

In November 2025 the Legislative Assembly extended free S.A.S. registration and the first business licence until 31 December 2026.
In November 2026 the Ministry of Economy proposed keeping registration free until 31 December 2027. It had not been approved when this page was checked.
Other companies can convert into a S.A.S., and a S.A.S. can convert into any other form.

Source: Legislative Assembly: free S.A.S. registration extended to 2026, November 2025; Infobae: proposal to keep S.A.S. registration free until 2027, November 2026; Decree No. 905 of 6 December 2023 reforming the Commercial Code (Legislative Assembly, PDF, in Spanish)^3,4,1

Frequently Asked Questions

What is a S.A.S. in El Salvador?

The Sociedad por Acciones Simplificada was added to the Commercial Code by Decree No. 905 of December 2023. It is the only commercial company one shareholder can form alone, and its capital starts at $1.

Does a S.A.S. need a notary?

No. A S.A.S. is formed only with the Registry of Commerce form; no public deed is needed. Electronic signatures must be certified electronic signatures.

Is registering a S.A.S. free?

Registration and the first business licence of a S.A.S. are free until 31 December 2026.

When must the S.A.S. capital be paid?

The capital is fully subscribed at formation and can be paid after registration, within two years at most.

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.