Pacific Ocean seacoasts, mountainous and steep terrain, surf spots, the Ruta de Las Flores, dreamy waterfalls, rainforests, coffee farms, volcanoes, galleries, bright wall paintings, and Juayúa’s weekend food festival are few of the characteristics which make El Salvador one of the most extraordinary Central American nations. Although small, El Salvador’s LLC business might just be another perk in extension to its long list of perquisites!

Timeframe: within 7 weeks

Minimum paid up capital requirement: GBP 1535

Overview

The most general administrative entity in El Salvador is a Limited Liability Company (LLC).

It is significant to note, that corporate income tax charge in El Salvador is 30%, and implements on the total value of the company’s earnings. However, corporate income tax is based on the regional principle, and, in general, is paid on goods located, activities realized, and capital invested in El Salvador as well as on services given in the country.

Even though there are no limitations in relationships to the shareholder’s citizenship or residency, it is essential to take into thought that a special withholding tax rate of 25% is implemented when profits, interests, and royalties are paid to a resident of tax havens.

Notable features

Advantages

  • Low investment
  • Not blacklisted
  • At present, the Online Gambling exercise is not directed in El Salvador

General information

Company structure

  • Minimum 1 Director (natural person, no limitations with regards to citizenship or residency)
  • Minimum 2 Shareholders (natural person or legal entity, no limitations with regards to citizenship or residence)

Taxation

  • Corporate Income Tax – 30%;
  • 75% Pago a Cuenta” tax ( This need to be paid monthly as an advance payment of the Corporate Income Tax);
  • VAT– 13%;
  • Withholding tax: Non-resident: 5% on Earnings, 20% on Interest, 20% on Royalties
  • Non-resident in a tax haven: 25% on Earnings, 25% on Interest, 25% on Royalties

Accounting and Audit conditions

  • The company is required to appoint an external audit
  • Audited business records are to be presented yearly to the Registry of Commerce
  • Depending on the revenue, some organizations have to perform an annual tax audit.

Local office – Required

Registered Agent – Required*

Secretary – Required

* Business need to appoint a local administrator, who will represent it before the Salvadoran Tax Office, whether he or she is Salvadoran or a foreigner residing in El Salvador.

Company name

  • Letters: Roman alphabet
  • Should contain the words “limited liability company” or the acronym “LLC”
  • Restricted connections for company name: titles of state and local administration bodies and agencies
  • A company’s name shall not be against good morals, as well as shall not be deceived with respect to the legal form, area of activity or field of activity of the undertaking
  • The company name is defined to be identical or alike that of an existing company

The registrar may refuse any name which it deems undesirable or contrary to the public interest

Procedure

In order to get an El Salvador Online Gambling permit, the following steps need to be taken out

  • Application for reservation of organization name
  • Development and submission form with the Ministry of Finance for getting the income tax contribution number (NIT) and the value-added tax contribution number (IVA)
  • Registration at the City Hall
  • Enrollment at the General Office of Statistics and Census
  • Registration at the Registry of Commerce
  • Opening of a bank account
Documents Required

If you are thinking of getting El Salvador Online Gambling permit, kindly provide the following papers:

  • Notarized copy of valid passport (each of Administrator/Director or Shareholder)
  • Notarized copy of proof of residence (e.g. Utility bill of each Director)
  • Salvadoran Tax Payers Identification Card- for each shareholder
  • Bank reference (of each Administrator/Director)
  • 2 Character reference Letter issued by professionals (of each Administrator/Director and Shareholder)
  • Complete CV dated and signed by the applicant (of each Administrator/Director and Shareholder)
  • Diploma of higher education
  • Notarized criminal record

In case the shareholder is a business, it is expected to provide:

  • Certified correct copy certificate of registration
  • List of stockholders
  • Copy of the last annual/financial return
  • Apostilled Certificate of Good Standing

Additional Due diligence may be appointed by Government Authorities*:

Original documents that prove the source of capital

All paperwork needs to be provided in English**

* Additional reports may be asked by the Registry or local Bank at any point to verify specific information

** If reports are not in English, then they must be brought by a notarized translation