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Integral Business Shop Provides Faster Company Registration - International Law Office

International Law Office

Company & Commercial - El Salvador

Integral Business Shop Provides Faster Company Registration

May 21 2007

Since January 2006 the Integral Business Shop has provided individuals and entities with a simpler and more efficient procedure for incorporating and registering a business.

The shop is the result of a joint project involving the National Registry Centre, the Ministry of the Treasury, the Social Security Institute and the Labour Ministry. Before the implementation of the new process, a new company had to be registered with each of the institutions individually in order to comply with its commercial, fiscal and employment obligations. Registration can now be completed at one agency, thereby considerably shortening the timeframe for incorporation: a procedure which previously took between one and six months can be completed in approximately five business days.

The shop is staffed by delegates from each of the four entities and is located at the Commercial Registry in the main offices of the National Registry Centre in San Salvador. Applicants may:

  • register the articles of incorporation of a new company;

  • register a company's business and establishment licence and its balance sheet;

  • obtain a tax identification number and a value added tax registration number;

  • register a place of employment with the Labour Ministry;

  • register as an employer with the Social Security Institute; and

  • obtain signatures on the registration form to confirm the identity of the individuals authorized to represent the company in employment matters.

These services take priority over other documents that are filed for registration in the normal course of business - a recognition of the time-sensitive nature of starting a business and meeting formal obligations within legal timeframes.

A year and a half after the shop's inauguration, the implementation of the new registration process has resulted in a record number of incorporations and start-ups, which demonstrates the advantages of a reduced timeframe for starting a business and a simple process involving only one government agency. The government aims to promote more national and foreign investment in the country and achieve greater control over registered businesses.

For further information on this topic please contact Roberta Gallardo at Arias & Muñoz by telephone (+503 2257 0900) or by fax (+503 2257 0901) or by email (rgallardo@ariaslaw.com).

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