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Friday, 09 February 2024 04:05

As of this month, corporations with a single shareholder and an initial capital of US$1 can be created

Written by Karla Gutiérrez
As of this month, corporations with a single shareholder and an initial capital of US$1 can be created

This february, the reforms to the Commercial Code will come into effect, which consists in the creation of Sociedades por Acciones Simplificadas (SAS), which may be incorporated by a single person, as opposed to Corporations that required two or more partners, and two thousand dollars to be legally constituted.

This is part of the reforms to the Commercial Code that the legislators approved in the plenary session, which will become effective 60 days after its publication in the Official Diary.

The Legislative Assembly endorsed the reforms to the Commercial Code regarding the creation of companies with only one shareholder and with an initial capital of US$1.

Advantages of the SAS:

Among the particularities of the SAS is that these can be incorporated by only one person (sole proprietorship), unlike the Variable Capital Corporations that require the participation of two or more partners.

In addition, it will provide salvadorans residing abroad the opportunity to incorporate companies within the national territory, by electronic signature.

The capital stock for the incorporation of these companies will be fixed by the shareholders and must be freely established starting from the minimum amount of US$1.

 

Translated by: A.M

Published in Finances
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