El Salvador

Ease of Doing Business in

El Salvador

This page summarizes Doing Business 2014 data for El Salvador. The first table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region Latin America & Caribbean
Income Category Lower middle income
Population 6,297,394
GNI Per Capita (US$) 3,580
City covered San Salvador
Doing Business 2014 Rank Doing Business 2013 Rank*** Change in Rank
118 115 down -3

Doing Business 2014 DTF** (% points) Doing Business 2013 DTF** (% points) Change in DTF** (% points)
58.93 58.75 down 0.18
Positive=Doing Business reform making it easier to do business. Negative=Doing Business reform making it more difficult to do business.
 

Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2014 Rank 148 DB 2013 Rank*** 139 Change in Rank down-9
DB 2014 DTF** (% points) 78.40 DB 2013 DTF** (% points) 78.25 Change in DTF** (% points) up0.15

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

Indicator El Salvador Latin America & Caribbean OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

View methodology
Procedures (number)
8 9 5

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

View methodology
Time (days)
16.5 36.1 11.1

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

View methodology
Cost (% of income per capita)
45.5 33.1 3.6

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

View methodology
Paid-in Min. Capital (% of income per capita)
2.8 3.6 10.4
No. Procedure Time to Complete Associated Costs
1 Deposit the legally required initial capital in a Salvadoran bank and obtain deposit evidence or certified check. 1 day (less than an hour) nominal fee
2 Check the uniqueness of the company name in the Registry of Commerce Less than one day (online procedure) no charge
3 Notarize the articles of association 2 days Between $500 and $1,000
4 Register with the Registry of Commerce and publication and legalization of books 3 days see comments
5 Accounting system 10 days USD 450
* 6 Register employees with one of the pension administrator funds (Administradora de Fondos de Pensiones). 3 days (simultaneous with previous procedure) no charge
* 7 Register the company for tax at the Mayor’s Office 1 day (simultaneous with previous procedure) USD 10
* 8 Make a company seal 2 days (simultaneous with previous procedure) USD 15
* Takes place simultaneously with another procedure.

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

***Last year's rankings are adjusted: they are based on 10 topics and reflect data corrections.

Explore Economy Data


- OR -

Close