Registration of foreign subsidiaries in El Salvador
Establishing Branches of Foreign Corporations in El Salvador. El Salvador Branches.
1. REQUIREMENTS
Articles of Incorporation proving that the company is duly registered in accordance with the laws of its country of origin, the document must be legalized by Apostille in the country of incorporation.
Probationary documents where the decision to incorporate a foreign subsidiary in El Salvador, has been duly recognized in accordance with its articles. Eg: Board of Directors’ Statement, asserting the agreement to incorporate a subsidiary in El Salvador.
Power of Attorney granted to the person who will represent the company in El Salvador, stating the faculties granted to him/her in a broad, clear and precise way. The POA shall be done in order to legally represent the foreign subsidiary in El Salvador. Such POA must be duly Apostilled and registered in the Registry of Commerce, prior to the incorporation of the subsidiary.
The Agent must permanently reside in El Salvador.
The necessary stock capital to operate the company, which must not be less than USD 12,000.00 as established by the Salvadoran law. It will be necessary to prove the capital amount to the Registry of Foreign Investment, at the Ministry of Economy.
Prior to the registry of the subsidiary, it is necessary to register the Initial Balance of the subsidiary to be incorporated at the Registry of Commerce. This must be duly certified by a Certified Public Accountant in El Salvador and externally audited, stating its Stock Capital.
Specify the economic activity of the foreign subsidiary, exposing the nature, amount, source, destination and the entrance date of the investment.
Transfer receipt or incoming wire transfer form in original and copy, stating the entrance date, foreign investor’s name, destination and exchange rate. The receipt must be duly signed and sealed by the bank. (it must have a date prior to the incorporation).
2. REGISTRATION PROCESS
Power of Attorney registration at the Registry of Commerce (5 days).
Initial Balance registration at the Registry of Commerce (5 days).
Investment registration in the Registry of Foreign Investment at Ministry of Economy (10 days).
Foreign Subsidiary registration at Registry of Commerce (10 days).
