In El Salvador, the Simplified Joint Stock Company (Sociedad por Acciones Simplificada, SAS) has become a popular legal vehicle for entrepreneurs, small businesses, and investors seeking a modern and flexible way to operate.
Since their introduction through Legislative Decree No. 905 (effective February 2024), SAS companies have provided a simplified and fully digital alternative to traditional corporate structures.
What is an SAS?
An SAS is a type of company that can be created by just one shareholder—either an individual or a legal entity. Unlike traditional limited liability companies, the SAS does not require multiple partners, a notary, or a public deed for incorporation.
The entire process, from registration to ongoing compliance, is managed online through the National Registry Center (Centro Nacional de Registros, CNR) platform. This makes it faster, less bureaucratic, and more accessible than other company models.
Key Benefits of the SAS in El Salvador
- Single shareholder allowed: No need to partner with others to start a business.
- Low capital requirement: Companies can be incorporated with as little as $1 in capital.
- Fully digital registration: Incorporation and filings are carried out online, reducing time and paperwork.
- Lower costs: No notarized public deed or notary fees required.
- Limited liability: Shareholders’ personal assets are protected, as liability is limited to their contributions.
- Flexible governance: Company bylaws can be adapted to the needs of each business, including share structure and decision-making rules.
- Ideal for SMEs and startups: Especially suited for micro, small, and medium-sized enterprises, as well as innovative projects in technology, commerce, and services.
Why SAS Matters for Entrepreneurs and Investors
The SAS framework has been instrumental in reducing barriers to formalization in El Salvador, particularly for small businesses and startups that previously faced high entry costs and complex procedures.
Key impacts include:
- Greater business formalization: Many entrepreneurs who operated informally have transitioned into the formal economy.
- Increased investor confidence: The model provides a clear and modern legal structure familiar to foreign investors from other countries.
- Support for innovation: Startups in technology, fintech, and digital services often choose the SAS for its simplicity and scalability.
Regional and International Context
El Salvador is part of a broader Latin American trend, following countries like Colombia, Mexico, and Chile, where SAS has become the preferred structure for new businesses.
The familiarity of this model makes it easier for foreign entrepreneurs to expand into El Salvador under a legal framework they already recognize.
Practical Details
- Legal framework: Legislative Decree No. 905 (View the decree ).
- Minimum capital: $1.
- Shareholders: From one (individual or legal person).
- Registration: Exclusively online via the CNR platform (cnr.gob.sv ).
Final Thoughts
For entrepreneurs—whether local or international—the Simplified Joint Stock Company (SAS) in El Salvador offers a flexible, low-cost, and digital pathway to formalize and grow a business.
Its combination of limited liability, ease of incorporation, and adaptability makes it one of the most attractive options for business creation in the country today.
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