Crypto License in El Salvador

To operate in the cryptocurrency field, companies need to obtain special licenses. These permissions are mandatory for businesses that provide services related to storing and using cryptocurrency wallets, issue tokens and digital assets, create and manage platforms for cryptocurrency exchanges, or offer investment services or products linked to digital assets. El Salvador has become one of the most attractive countries for the crypto business. This nation was the first in the world in 2021 to officially recognize Bitcoin as legal tender alongside the US dollar. Licensing and operations with cryptocurrencies here are governed by two significant legislative acts: the Law on the Issuance of Digital Assets (LEAD), which sets rules for the issuance, trading, and use of cryptocurrencies, and the Bitcoin Law of 2021, which confirms Bitcoin’s status as a legitimate payment method.

Crypto License in El Salvador

Why should you pay attention to the crypto license in El Salvador?

First off, the country’s legislation offers clear and transparent rules for working with digital assets. This creates a reliable legal foundation for storing and using cryptocurrencies. Companies that have obtained a license can operate in a stable and predictable legal environment, where their rights and asset security are protected at the government level. This is particularly crucial for reducing risks associated with market volatility and the legal uncertainty that many other jurisdictions face.

Secondly, El Salvador offers significant tax incentives. For instance, companies are exempt from capital gains tax when conducting transactions with cryptocurrencies if they are registered with the National Commission for Digital Assets (CNAD) and meet local requirements.

Moreover, having a crypto license in El Salvador greatly enhances trust from overseas partners. It shows that the business adheres to strict government standards of security, transparency, and legal regulation. Such permission plays a key role in attracting major investors, banks, and financial institutions willing to collaborate only with reliable and law-abiding organizations. Furthermore, the license confirms that the company operates in line with international standards, including FATF recommendations on combating money laundering (AML) and customer identification procedures (KYC).

Crypto licence packages in El Salvador

Use our expertise in obtaining crypto licenses in El Salvador. Choose the package that suits your needs best of all.

Popular package

Gold

$18,765

+ official fees

The package includes comprehensive company registration in El Salvador, covering legal setup, tax registration, licensing, accounting, and compliance.

  • tick-square-pricing-cardName availability search
  • tick-square-pricing-cardPreparing Articles of Incorporation
  • tick-square-pricing-cardObtaining Salvadoran Taxpayer Identification Number Card for the company and up to 4 shareholders
  • tick-square-pricing-cardObtaining the NRC of the company (VAT card)
  • tick-square-pricing-cardRegistration of the articles of incorporation
  • tick-square-pricing-cardPreparing and filing the initial balance of the company
  • tick-square-pricing-cardIssuing share certificates
  • tick-square-pricing-cardObtaining the first company and establishment registration license
  • tick-square-pricing-cardRegistration at San Salvador City Hall
  • tick-square-pricing-cardObtaining authorization to issue invoices and related documents
  • tick-square-pricing-cardIssuance of authorized invoices and related documents
  • tick-square-pricing-cardObtaining company seal
  • tick-square-pricing-cardOpening a corporate bank account
  • tick-square-pricing-cardElaborating and authorizing by CPA the accounting system and company books (Accounts Catalog, Accounting Policies, and application handbook)
  • tick-square-pricing-cardRegistering the company at the Financial Investigation Unit
  • tick-square-pricing-cardRegistering establishment at the Labor Ministry
  • tick-square-pricing-cardRegistering the company at the Salvadoran Social Security (ISSS)
  • tick-square-pricing-cardRegistering the company at the Salvadoran Retirement — Pension Fund Administrators (AFP)
  • tick-square-pricing-cardElaborating and registering internal company rules and regulations at the Labor Ministry (mandatory from the tenth employee)
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Silver

$16,815

+ official fees

The package includes services for company registration in El Salvador: document preparation, obtaining tax IDs and licenses, and opening a corporate bank account.

  • tick-square-pricing-cardName availability search
  • tick-square-pricing-cardPreparing Articles of Incorporation
  • tick-square-pricing-cardObtaining Salvadoran Taxpayer Identification Number Card for the company and up to 4 shareholders
  • tick-square-pricing-cardObtaining the NRC of the company (VAT card)
  • tick-square-pricing-cardRegistration of the articles of incorporation
  • tick-square-pricing-cardPreparing and filing the initial balance of the company
  • tick-square-pricing-cardIssuing share certificates
  • tick-square-pricing-cardObtaining the first company and establishment registration license
  • tick-square-pricing-cardRegistration at San Salvador City Hall
  • tick-square-pricing-cardObtaining authorization to issue invoices and related documents
  • tick-square-pricing-cardIssuance of authorized invoices and related documents
  • tick-square-pricing-cardObtaining company seal
  • tick-square-pricing-cardOpening a corporate bank account
  • tick-square-pricing-cardElaborating and authorizing by CPA the accounting system and company books (Accounts Catalog, Accounting Policies, and application handbook)
  • tick-square-pricing-cardRegistering the company at the Financial Investigation Unit
Заказать сейчас

Blue

$10,880

+ official fees

The package enables company registration in El Salvador, including preparation of documents, obtaining licenses, and tax ID.

  • tick-square-pricing-cardName availability search
  • tick-square-pricing-cardPreparing Articles of Incorporation
  • tick-square-pricing-cardObtaining Salvadoran Taxpayer Identification Number Card for the company and up to 4 shareholders
  • tick-square-pricing-cardObtaining the NRC of the company (VAT card)
  • tick-square-pricing-cardRegistration of the articles of incorporation
  • tick-square-pricing-cardPreparing and filing the initial balance of the company
  • tick-square-pricing-cardIssuing share certificates
  • tick-square-pricing-cardObtaining the first company and establishment registration license
Заказать сейчас

Types of crypto licenses in El Salvador

In El Salvador, companies dealing with digital assets can choose between two types of licenses. Each is suitable for a specific business model and covers its own areas of activity:

  • License for Digital Asset Service Providers (DASP). This permission is required for all companies providing services related to cryptocurrencies, excluding Bitcoin. This category includes providers working with tokens, altcoins, or other digital assets. Licensing is carried out by the National Commission for Digital Assets (CNAD), and the process is strictly regulated by the provisions of the Law on the Issuance of Digital Assets (LEAD).
  • License for Bitcoin Service Providers (BSP). This type of license is mandatory for companies that provide services exclusively using Bitcoin. This includes firms engaged in Bitcoin exchange, storage, or payment processing. This type of license is issued by the Central Reserve Bank of El Salvador (BCR).

Main differences between the licenses

The difference between these two types of licenses lies in their application specifics and the types of digital assets with which companies can work. Let’s look at the features of each:

DASP License

  • This license covers a wide range of digital assets, including tokens, altcoins, and other cryptocurrencies, excluding Bitcoin.
  • The process of obtaining a license is governed by the LEAD Law, which establishes strict rules for the issuance, storage, exchange, and trading of crypto assets.
  • Holders of this license gain the ability to offer diverse services in the cryptocurrency market, making it particularly sought after by innovative startups working on asset tokenization or new cryptocurrencies.

BSP License:

  • This is intended solely for companies focused on Bitcoin.
  • It is suitable for providers engaged in Bitcoin exchange, storage, transaction processing, and payments.
  • This license is ideal for those aiming to develop infrastructure and services related to Bitcoin.

How to choose the right license?

Choosing between the DASP and BSP licenses depends on your company’s specialization and business model. If your business focuses on a variety of digital assets, the DASP license would be the best choice. However, if you want to concentrate solely on Bitcoin and related services, the BSP license is the way to go.

Holding any type of license not only allows compliance with the laws of El Salvador, but it also strengthens your company’s position in the international market, showcasing its reliability and legal integrity.

Step-by-step process of obtaining a crypto license in El Salvador

To officially obtain a crypto license in El Salvador, several mandatory steps must be followed. Each of these has its own timelines and requirements.

Step 1: Preliminary registration with CNAD

At the initial stage, the company must confirm its intention to operate within the legislative norms of El Salvador. This step takes 2 to 4 weeks and includes an assessment of the applicant’s compliance with local laws.

During the preliminary registration phase, the following documents must be prepared and submitted:

  • Information about the company’s corporate structure;
  • A detailed business plan outlining planned activities in the cryptocurrency sector;
  • Detailed data on measures to comply with AML (anti-money laundering) and KYC (customer identification) standards.

It’s crucial to keep in mind that non-compliance with requirements at this stage can lead to a denial of the license. Therefore, careful preparation of all documents is essential.

Step 2: Company registration and obtaining a license

After preliminary registration, it’s necessary to create a legal entity in El Salvador. This process is conducted in accordance with local corporate legislation and can take 3 to 6 months.

At this stage, our specialists will provide full support in company registration. Before applying for a crypto license, it’s important to complete the following steps:

  1. Register the company with the authorities.
  2. Prepare a document package, including:
    • Information about the owners and shareholders;
    • Data on the company’s transparency and security measures.

The CNAD (National Commission for Digital Assets) thoroughly checks the submitted information to ensure the company meets all legal, financial, and operational standards. Successful completion of this stage confirms the company’s right to proceed directly to the licensing stage.

Finishing the registration process demonstrates that the company operates transparently, adheres to safety norms, and meets all regulatory requirements.

Step 3: Opening a corporate bank account

After the company registration, it’s necessary to open a corporate account in one of the banks in El Salvador. This is an important step, as the account provides the financial foundation for managing the company, including processing payments, executing transactions, and complying with regulatory obligations.

The account opening stage takes 4 to 8 weeks. For this, the following will be required:

  • Company registration certificate;
  • Documentation confirming compliance with AML standards;
  • A complete set of other documents required for bank approval.

Our specialists are ready to help expedite this process. We begin the account opening procedure simultaneously with the license application, which helps optimize timelines.

Final step: obtaining permission and starting operations

After reviewing all documents and completing all procedures, the CNAD issues the company official permission. This confirms that the company can begin its operations in El Salvador, providing services to clients.

On average, the process of obtaining a crypto license takes about 6 months. This timeframe includes company registration, submission of all documents, and passing all checks.

Requirements for a crypto license in the Republic of El Salvador

To obtain a crypto license in El Salvador, companies must meet certain conditions and prepare the necessary documents.

General requirements:

  • Create a legal entity in El Salvador.
  • Have at least two shareholders.
  • Provide a minimum share capital of at least $2,000.
  • Open a physical office in the country.
  • Appoint a compliance officer responsible for adhering to AML standards.

Documentation requirements:

  • Company incorporation documents.
  • Identification and address verification documents for directors and shareholders.
  • A detailed three-year business plan.
  • Information about the company structure.
  • Description of AML policies and procedures.
  • Cybersecurity protocols.

Companies working with crypto assets are required to implement cybersecurity standards to protect virtual assets and regularly confirm their compliance with the crypto license. After obtaining the license, companies must maintain financial reporting, provide it to regulators, and disclose information about their activities upon request, including details about owners and shareholders.

How to register a crypto company in El Salvador

Registering a company to operate with cryptocurrencies in El Salvador requires strict adherence to local laws and regulatory agency requirements. For a successful business start, it’s important to have a good grasp of the regulatory framework. To simplify the process, we offer professional assistance and full support at every stage of creating a company and obtaining a crypto license.

The process of registering a crypto company in El Salvador includes the following key steps:

Choosing an organizational structure

For providing services related to digital assets, the optimal form of legal entity in El Salvador is an LLC (limited liability company). Company registration involves three stages:

  1. Choosing a unique name. The company name must be original and not overlap with other registered entities.
  2. Checking the availability of the name. This needs to be done through the relevant local authorities.
  3. Aligning the company structure with the legislation. It’s important that the organizational structure meets operational goals and local legal requirements.

Document preparation

At the document preparation stage, we’ll provide a detailed list of necessary papers for company registration and obtaining a crypto license. The standard package usually includes:

  • Company incorporation documents;
  • Information about directors and shareholders;
  • Company structure details;
  • Other documents related to internal policy and financial plans.

Submitting a registration application

After preparing the documents, it’s necessary to submit an application to the National Registry of El Salvador. We’ll help fill it out correctly and ensure that all documents meet the requirements. The application must include a complete set of papers confirming the company’s activities.

Opening a corporate account

A key part of registration is opening a bank account. Our experts will help select a suitable financial institution and expedite the application process. To open an account, the following will be required:

  • Company registration documents;
  • Bank details to provide to CNAD;
  • Documentation confirming compliance with AML standards.

Opening the account is also necessary for conducting financial transactions, paying for services, and meeting regulatory requirements.

Additional registration with government agencies

Depending on the type of license, companies must register with specialized registers:

  • Companies with a DASP license must register with the Cryptocurrency Service Providers Registry in El Salvador (RPSAD).
  • Companies with a BSP license must be registered with the Bitcoin Service Providers Registry (RPSBTC).

In addition, to operate with crypto assets, companies must obtain a taxpayer identification number (NIT) from the tax authority in El Salvador. This requirement is mandatory even in the absence of taxes on cryptocurrency transactions.

Control and supervision by regulators

Crypto companies registered in El Salvador are under the supervision of state authorities. The main regulators include:

  • Unidad de Investigación Financiera (UIF) – a unit investigating financial operations.
  • Superintendencia del Sistema Financiero (SSF) – the supervisory body for financial institutions.

Companies may also undergo additional registration with other government agencies, such as social security authorities, if the company has hired employees.

Taxation of cryptocurrency businesses and regulatory benefits in El Salvador

El Salvador attracts the attention of crypto companies and investors due to its progressive approach to taxing operations with digital assets. Companies conducting business in El Salvador are completely exempt from capital gains tax when working with cryptocurrencies, including Bitcoin. This isn’t the only advantage: licensed companies receive additional benefits. For instance, income from transactions with virtual assets is not subject to corporate tax, significantly reducing the financial burden on businesses. This approach makes El Salvador one of the most favorable jurisdictions for crypto companies.

Requirements for companies after obtaining a crypto license in El Salvador

After obtaining a crypto license, companies must comply with certain requirements, including renewing the license annually. This process includes:

  • Submitting an application to CNAD several months before the license expires.
  • Providing updated documents confirming compliance with license standards.
  • Preparing financial reporting and data on the current activities of the company.
  • Paying the annual licensing fee.

Regular renewal of the license is mandatory to maintain the company’s legal status. Without this, the firm cannot continue its operations in the country.

Recent changes to LEAD

Cryptocurrency legislation in El Salvador is regularly updated to align with international standards and adapt to the rapidly changing market conditions. In January 2023, significant changes came into effect under the LEAD law. Among the key updates:

  • Permission for tokenization of real assets. Companies can now create tokens linked to real assets such as real estate or commodities.
  • Issuance of stablecoins. El Salvador became one of the first countries to support the regulation of stablecoin issuance.

These amendments have strengthened the requirements for companies issuing tokens and working with digital assets, making the licensing process even more transparent and secure.

Increasing transparency and implementing digital tools

To enhance transparency and simplify the application process for crypto licenses, CNAD has implemented digital solutions. Companies are now required to provide:

  • Detailed information about their structure.
  • Data on funding sources.
  • Information on measures to comply with AML and KYC standards.

Using digital tools allows for faster data verification and improved interaction between the regulator and applicants. These measures strengthen El Salvador’s position as a global center for the crypto business.

Why choose El Salvador?

El Salvador doesn’t just support the development of the cryptocurrency sector; it sets standards for its regulation. The recognition of Bitcoin as legal tender and the government’s focus on developing the digital economy make this country appealing for business. Companies gain not only legal safety and tax incentives but also access to an innovative environment.

Start the process of obtaining a crypto license in El Salvador today! We offer expert consultations and full support at every step. With our help, your business will meet the highest international standards.