When examining a jurisdiction in which to incorporate, the first thing to look at is the legal code. The underlying law in El Salvador is civil law law. You will want to get some local advice as to how to best structure a company in El Salvador. Electronic signatures are permitted.
The country code SV is for El Salvador and the most common company structure in El Salvador is a LLC.
The average time to incorporate is 4 weeks to incorporate a LLC in SV. The types of consideration you can use to fund your legal entity is most commonly USD legal tender.
Yes, one is allowed to re-domicile a LLC from SV. You are usually allowed to change the jurisdiction of the company, pending certain procedures.
There must be at least This means it is not possible for you to own a LLC in El Salvador as a sole shareholder. You must have other shareholders, they can be nominees or de facto shareholders. Corporate Shareholders are encouraged, which means you can have a corporate shareholder. Foreign ownership is tolerated, up to 49% of the ownership of the legal entity.
A company is only required to have one director. Speaking of shareholders, corporate directors are permitted. Directorship information is ususally not shared with the general public. There is a requirement to have annual meetings of shareholders.
A registered office is a requirement, whom the company will pay yearly, for an office which can receive any lawsuit papers on behalf of the company. Furthermore, a company secretary is a requirement.
There is a legal obligation to file accounts on a yearly basis. Furthermore, there is oftentimes a requirement to have these accounts audited.
Thin capitalization rules are in effect. A company is thinly capitalised when there is a greater proportion of debt than equity. The minimum capitalization for a El Salvador Civil Law is 100.
A corporate director is permitted, meaning this country is a good option if you are setting up a structure where you want to protect director liability.
The directors are not disclosed in the public registry of El Salvador, Imprenta Nacional. Shareholders are not disclosed in the Imprenta Nacional.
Typically companies take 4 weeks to setup and there are 1 director(s) required and 2 shareholder(s) required at the time of incorporation.
Overall we think El Salvador is a ok option and have given it a score of 55 as an IO score, using the Incorporations.IO proprietary formula.
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