El Salvador

Ease of Doing Business in

El Salvador

This page shows summary Doing Business 2012 data for El Salvador. The first table lists the overall "Ease of Doing Business" rank (out of 183 economies) and the rankings by each topic. 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 6,194,126
GNI Per Capita (US$) 3,360.00
Doing Business 2012 Rank Doing Business 2011 Rank Change in Rank
112 112 0
Topic Rankings DB 2012 Rank DB 2011 Rank Change in Rank
Starting a Business 136 129 up -7
Dealing with Construction Permits 144 141 up -3
Getting Electricity 130 126 up -4
Registering Property 54 50 up -4
Getting Credit 48 45 up -3
Protecting Investors 166 172 up 6
Paying Taxes 146 141 up -5
Trading Across Borders 69 72 up 3
Enforcing Contracts 66 57 up -9
Resolving Insolvency 88 92 up 4

Economy Profile

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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 2012 Rank 136 DB 2011 Rank 129 Change in Rank down-7
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).

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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.

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Time (days)
17 54 12

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.

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Cost (% of income per capita)
45.1 37.3 4.7

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.

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Paid-in Min. Capital (% of income per capita)
3.0 4.3 14.1
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
2 Check the uniqueness of the company name in the Registry of Commerce 1 day no charge
3 Notarize the articles of association 2 days Between USD 500 and USD 800
4 Register with the Registry of Commerce and publication and legalization of books 3 days USD 0.57 for every USD 114.28 + USD 2.3 (for copies) + USD 17.14 (Balance Deposit) + USD 137.14 (business license) + USD 0.1*100*3 ( legalization of books) + USD 34.29 (local registration)
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.

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