A Non-Governmental Organization (NGO) is a social initiative entity with humanitarian purposes and non-profit objectives. An NGO can be involved in religious, cultural, artistic, sports, research, or other projects. Our associate attorney, Daniela Deras, explains that the primary forms of registering an NGO in El Salvador are Associations, Non-Profit Foundations, Savings and Credit Associations, and Churches.

“Some NGOs specialize in working with volunteers, while others seek contracts for professional services and specialists to work in the areas they want to help. However, many of these organizations operate using a combination of both approaches,” mentions Deras.

According to Deras, individuals looking to establish an NGO in the country must have the support of a lawyer, a notary, and an accountant to meet the requirements set by Salvadoran laws. Our specialist emphasizes that before registering with the authorities, the prospective NGO must have the institution’s name, the identity and address of its members or founders, the legal personality, the activities it will undertake, defined capital, and a mechanism for contributions.

“It is essential to have a clear understanding of the foundation’s objectives, which should aim to support specific sectors without seeking economic benefits. Don’t forget that you also need to acquire the Tax Identification Number (NIT),” she underscores.

In the case of national associations and foundations, our specialist explains that they need to approach the Registry of Non-Profit Associations and Foundations of the Ministry of Governance with the following documents:

1. Two testimonies of the Matrix Constitution Deed of the Association or Foundation, including the approval of the Bylaws, the election of the first Board of Directors or governing body, along with three copies.
2. Three copies of the Bylaws, with article separation.
3. A list of the individuals who comprise the entity, stating their nationality and identification document.
4. Certification of the minutes of the Board of Directors’ election. The books in which the General Assembly of the Board of Directors and the Member Registry and accounting books were recorded.

On the other hand, in the registration process for foreign non-profit legal entities:

1. The entity must be legally constituted according to the laws of its country of origin.
2. According to the laws of that country and the governing Bylaws, it must have the authority to establish branches, subsidiaries, and agency offices in foreign countries.
3. The decision to operate in El Salvador must be validly adopted.
4. It must commit to maintaining at least one representative in the Republic of El Salvador, with broad and sufficient powers to carry out all acts that must take effect within the national territory.
5. The parent entity must be liable, both within and outside the country, for acts and contracts signed in the Republic.
6. It must provide a roster of foreign personnel who will remain in the country.

Once the NGO is established and operational, Deras describes that the organization must comply with certain legal and accounting requirements, such as submitting financial statements to the Registry of Foundations and Non-Profit Associations, holding an annual meeting of the Board of Directors, maintaining an updated member list, establishing a fiscal address, and filing monthly and annual tax declarations.

If you have any inquiries, you can contact us through our social media channels or at our offices with our Labor Department.