Simplified Joint stock companies in El Salvador

Abstract

Companies are subject to legislation and processes predefined by the commercial registries for their incorporation. Recently El Salvador has adhered to the proposal made by the OAS to facilitate through a legal figure called Simplified Joint Stock Companies the incorporation of companies that can be sole proprietorships whose reduced costs and formalities allow their creation in a more expeditious manner, in order to reduce informality, attract new investors and provide companies with access to financial products and services to which it is limited, for example in the area of financing. The objective is to present a summary of the benefits and limitations of this reform to the Salvadoran commercial code, which has been aligned with what has already been implemented in countries such as Paraguay, Ecuador, Panama, Uruguay, Argentina, Mexico, Chile and Colombia, with El Salvador being the first to implement it in the Central American region.

Realidad Empresarial No. 17, 2024: 27-39.