Ease of Doing Business in

El Salvador

El Salvador Download Profile (1769.8KB, pdf)
Region Latin America & Caribbean
Income Category Lower middle income
Population 6,126,583
GNI Per Capita (US$) 3,940
City covered San Salvador



DB 2017 Rank



DB 2017 DTF (% points)

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Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 95 86 down
61.02 62.20 down
Starting a Business 129 122 down
80.70 80.19 up
Dealing with Construction Permits 156 154 down
56.29 56.03 up
Getting Electricity 109 106 down
63.75 63.68 up
Registering Property 71 70 down
67.09 67.13 down
Getting Credit 44 14 down
65.00 80.00 down
Protecting Minority Investors 158 157 down
38.33 38.33
Paying Taxes 166 168 up
49.51 47.04 up
Trading across Borders 44 44
88.49 88.49
Enforcing Contracts 104 102 down
55.20 55.20
Resolving Insolvency 80 78 down
45.83 45.90 down

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:


DB 2016 Rank:


Change in Rank:


DB 2017 DTF (% points):


DB 2016 DTF (% points):


Change in DTF (% points):


Legal form Sociedades Anónimas de Capital Variable
Paid-in minimum capital requirement USD 100
City San Salvador
Indicator El Salvador Latin America & Caribbean OECD high income
Procedure – Men (number) info_outline 8 8.3 4.8
Time – Men (days) info_outline 15.5 31.6 8.3
Cost – Men (% of income per capita) info_outline 40.7 31.5 3.1
Procedure – Women (number) info_outline 8 8.3 4.8
Time – Women (days) info_outline 15.5 31.6 8.3
Cost – Women (% of income per capita) info_outline 40.7 31.5 3.1
Paid-in min. capital (% of income per capita) info_outline 2.5 2.3 9.2
  • No. Procedure Time to Complete Associated Costs

    Deposit the legally required initial capital in a Salvadoran bank and obtain deposit evidence or a certified check

    Agency: Bank

    At least 5% of the initial start-up capital has to be shown and evidenced to a Salvadoran public notary. This capital has to be shown through a certified check payable to the name of the company, for the amount for which the company will initiate its operations. The check will be deposited in the company’s new account once the deed is duly registered at the Registry of Commerce (that is, the company has been established).

    1 day no charge

    Check the uniqueness of the company name

    Agency: Registry of Commerce

    Entrepreneurs can check the uniqueness of the company name at the Registry of Commerce online (http://www.e.cnr.gob.sv/portal/).

    Less than one day (online procedure) no charge

    Notarize the articles of association

    Agency: Notary

    To establish a corporation, Article 22 and Article 101 of the Code of Commerce require fulfillment of the following requirements:
    - Name and personal data of company shareholders (minimum of two shareholders)
    - Commercial name
    - Term, domicile, and company social purpose
    - Capital stock
    - External and fiscal auditors.

    The cost to notarize the articles of incorporation ranges between USD 500 to USD 1,000.

    1 day Between USD 500 and USD 1,000

    Register the company and obtain the publication and legalization of books

    Agency: National Registration Centre

    The entrepreneur can also register at the Commercial registry with the Ministry of Labor, the VAT Authority, and the Salvadorian Institute of Social Security (“trámite integral”).

    The Registry of Commerce Act establishes fees for the registration of companies. Article 63 establishes different fees for the company's business license according to the company's initial capital, from USD 2,000 to USD 57,150 the fee is USD 91.43; from USD 57,151 to USD 114,286 the fee is USD 137.14; from USD 114,287 to USD 228,572 the fee is USD 228.57; and, if the company's initial capital exceeds USD 228,572, the company has to pay USD 11.43 for every USD 100,000 or fraction of it, but cannot exceed USD 11,428.57.

    The registration fees are the following: 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 per page (legalization of books, assuming 3 books, 100 pages per book) + USD 34.29 (local registration).

    In addition, every founder partner must filled form F-210 (USD 1.25) to obtain a Salvadoran Tax Card (Numero de Identificacion Tributaria/Tarjeta de NIT). This form can be filled at the time of registration or after registration before the Ministry of Treasury (Decreto Legislativo 227 del 12 de Diciembre de 2009 Ley del NIT).

    The pre-registration can be done online (http://miempresa.gob.sv). However, most entrepreneurs still complete this procedure in-person and it is required to visit the registry to obtain the final documents.

    3 days see procedure details

    Legalize company books by an auditor

    Agency: Auditor

    The external auditor of the company authorizes the accounting procedures and the internal books, which include the general shareholders meeting book, the board of directors' book, the registry of shareholders book, and the increase or decrease of capital stock book. Article 40 of the Code of Commerce, states that the books can be legalized either by the external auditor or by the Register of Commerce.

    10 days USD 450
    * 6

    Register employees with either of the two Pension Fund Administrators

    Agency: Either Pension Fund Administrator (Administradora de Fondos de Pensiones)

    All new businesses must register employees with any of the Pension Fund Administrators (Administradora de Fondos de Pensiones).This obligation is procured before any of the two Pension Fund Administrators in El Salvador (AFP CRECER or AFP CONFIA).

    The following documents must be presented:
    a) a copy of the Salvadoran Identification Card of Passport of the Legal Representative
    b) a copy of the VAT card of the company
    c) a copy of the Incorporation Document
    d) a filing of the application

    3 days (simultaneous with previous procedure) no charge
    * 7

    Register the company for taxes

    Agency: Mayor's Office

    Upon registering at the Registry of Commerce, each founder must pay a tax (Vialidad A) of about USD 10 each.

    The following requirements apply:
    i) Filing of an application
    ii) Fling of a notary certified copy of the registered initial balance sheet of the company
    iii) Filing of a notary certified copy of the registered incorporation document of the company
    iv)Filing a notary certified copy of the Identification Document of the Legal Representative of the company
    v)Payment of fees
    vi) A notary certified copy of he VAT card of the company coup be requested

    1 day (simultaneous with previous procedure) USD 50
    * 8

    Make a company seal

    Agency: Sealmakers

    Because no authorization is required, it is customary for companies to make a seal. A company seal can be made in 1 or 2 days at a cost of about USD 15–USD 30, depending on the size and design selected by the client.

    2 days (simultaneous with previous procedure) USD 15

    * Takes place simultaneously with previous procedure.