Sole Trader (Comerciante Individual) in El Salvador
Registering
- Who: anyone legally able to enter into obligations, from 18 years of age.
- Where: the Registry of Commerce of the National Registry Centre (CNR), with the form "Matrícula primera vez persona natural".
- What to attach: the paid fee receipt, a copy of the VAT registration (NRC) and an opening balance. In Santa Ana Centro, a municipal tax clearance is also required.
- Fee: set by the scale in Article 63 of the Registry of Commerce Law.
- Each shop or office is registered within 60 days of opening, for $34.29.
Source: Commercial Code, consolidated text (Legislative Assembly, PDF, in Spanish); National Registry Centre (CNR): Registry of Commerce services and fees1,2
The NIT and VAT registration come first; see tax registration.
Accounting thresholds
| Business assets | What applies |
|---|---|
| Below USD 12,000 | Exempt from the merchant duties of Book Two of the Commercial Code except fair competition; can keep the books personally |
| USD 12,000 or more | Books kept by an authorised public accountant; yearly closing balance deposited at the Registry of Commerce |
| USD 34,000 or more | The yearly balance must also be certified by an auditor |
Source: Commercial Code, consolidated text (Legislative Assembly, PDF, in Spanish)1
A business without a valid business licence can be temporarily closed after a warning of up to 30 working days to obtain or renew it.1
Individual limited liability enterprise
- What it is: a business owned by one individual with limited liability towards third parties, without forming a company.
- Name: the owner's name or a chosen name, followed by "Empresa de Responsabilidad Limitada" or "E. de R. L.".
- Capital: whatever the owner decides to contribute; the Code sets no minimum.
- Steps: an inventory of the assets certified by an external auditor, cash deposited in a bank, the free Registry of Commerce form, publication in a national newspaper and the Diario Oficial, and 30 days for creditors to object.
- Fee: $1 per $100 of capital, up to $12,000.
Source: Commercial Code, consolidated text (Legislative Assembly, PDF, in Spanish); National Registry Centre (CNR): Registry of Commerce services and fees1,2
For one owner, a simplified joint-stock company is usually simpler to form: there is no inventory, publication or waiting period.1,3
Frequently Asked Questions
How does a sole trader register in El Salvador?
A sole trader (comerciante individual) registers a business licence (matrícula de empresa) at the Registry of Commerce of the CNR. The NIT and VAT registration come first.
Can foreigners trade as sole traders?
Yes. Foreigners may also trade in El Salvador under the Commercial Code.
When must a sole trader have an audited balance?
From USD 34,000 of business assets, the yearly balance must be certified by an auditor.
Sources
- Commercial Code, consolidated text (Legislative Assembly, PDF, in Spanish)
- 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.
