What are the types of companies in El Salvador?

There are different company types that those who want to establish a company in El Salvador can choose. These are:

1. Personal Company (Sociedad Individual): It is a type of company established and managed by only one person. In this type of company, the owner of the company is personally liable.

2. Limited Liability Company (Sociedad de Responsabilidad Limitada - SRL): It is the most common type of company and can be established by at least two partners. The partner's liability is limited to the amount of capital invested.

3. Joint Stock Company (Sociedad Anónima - SA): It is a type of company that can be established by at least two partners. The company's capital is divided into shares and shareholders are liable in proportion to the capital they invested.

4. Branches: These are the branches opened by a foreign company to operate in El Salvador. The activities of the branch are carried out under the control of the parent company.

5. Cooperatives: These are companies established to protect the economic and social interests of the partners. Decisions are made based on the equal rights of the partners and profits are shared. Each of these company types comes with different formation and management requirements. During the company formation process, it is important that you take into account the legal regulations and requirements that apply in El Salvador. It is recommended that you seek support from a professional advisor or local attorney.