Starting a Business in El Salvador

Running Head : BUSINESS IN EL SALVADOR

How to Open a Business in El Salvador

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Your Name How to Open a Business in El Salvador

Opening a new business is never an easy task . Various factors count while starting a new venture and much is at stake . However the formalities and the difficulties also depend on the country one wants to do business in . Every country has certain rules and regulations as regards to doing businesses on its land . El Salvador is an open economy in Central America and attracts

foreign investors . After Chile El Salvador has become the second most open economy in Latin America Government is democratic and offers several promotional benefits for the investors . Several factors like . CAFTA (Central American Free Trade Agreement , low inflation , proximity to the US marketplace competitive operational costs , and tax exemptions in free trade zones ' make the country an attractive option for foreign investment ( Doing Business in El Salvador , 2007 . Even though issues like unemployment and gang activities are bothersome but .sustainability and sound CSR (corporate social responsibility ) policies in agribusiness , manufacturing , apparel , electronics , and the development of bio-fuels place El Salvador at the forefront of Latin American trade development ( Doing Business in El Salvador , 2007

The country also gets assistance from the United States to tackle with the negative issues in the society ( Doing Business in El Salvador 2007

Flexible policies of El Salvador make it much easier for the companies to do business in the country . State has free trade agreements with a number of countries like US , Guatemala , Honduras , Nicaragua , and Dominican Republic , Chile , Mexico , Dominican Republic , Panama , Taiwan Colombia , and Central America and many other countries . It is an open market for US goods with very low tariffs and other trade restrictions USA is the biggest trade partner of the country followed by Central America and Mexico . The official currency is US dollar . El Salvador has very less corruption . On the other hand there are also some limitations for the foreign companies . Judicial system of the country is time-consuming , lethargic and is partial as far as foreign companies are concerned . Crime rate is high and literacy rate is low leading to unemployment and lack of English proficiency ( Doing Business In El Salvador : A Country Commercial Guide for U .S . Companies , 2008

El Salvador offers significant growth in sectors like automotive parts and service equipment , dental equipment , printing and graphics and travel and tourism . Agents are the best way of entering the Salvadorian market and the concentration of trade in the capital city rules out the need for more than one agent . Companies or individuals must verify every agreement and bona fides of partners they are going to be associated with . There is no need of an exclusive territorial contract in the beginning with agents . The Salvadoran Commercial Code is meant to protect both the agents and the companies in default situations Companies must consult local lawyers to get a hold of the legal system of the...