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 lawyer, Daniela Deras, explains that the main ways to register an NGO in El Salvador are through Associations, Non-Profit Foundations, Savings and Credit Associations, and Churches.
"There are NGOs that specialize in working with volunteers, while others seek contracts for professional services and specialists to work where they want to provide assistance. However, many of these operate under a model that combines both types of engagements," says Deras.
According to Deras, individuals who want to establish their NGO in the country must seek the assistance of a lawyer, a notary, and an accountant to fulfill the requirements set by Salvadoran laws.
Our specialist explains that before registering with the authorities, the future NGO must have the institution's name, the identity and address of the members or founders, the legal personality to be adopted, the activity the foundation will carry out, defining the capital, and the contribution mechanism.
"It is important to have a clear understanding of the foundation's objectives, which should aim to support specific sectors and not pursue economic benefits. It is also essential to obtain the Tax Identification Number (NIT)," she emphasizes.
Regarding national associations and foundations, our specialist mentions that they need to approach the Registry of Non-Profit Associations and Foundations of the Ministry of Governance with the following documents:
- Two copies of the Deed of Constitution of the respective Association or Foundation, including the approval of the Bylaws and the election of the first Board of Directors or governing body, accompanied by three copies.
- Three copies of the Bylaws, clearly separated into articles.
- List of individuals who are part of the entity, including their nationality and identification document.
- Certification of the Act of Election of the members of the Board of Directors, the books in which the General Assembly Acts of the Board of Directors and the Register of Members and Accounting Books are recorded.
On the other hand, in the registration process for foreign non-profit legal entities:
- The entity must be legally constituted in accordance with the laws of the country of origin.
- According to the laws of that country and the statutes governing the entity, it can establish branches, subsidiaries, and agency offices in foreign countries.
- The decision to operate in El Salvador must be validly adopted.
- It must commit to maintaining a representative with broad and sufficient powers to carry out all acts that must take effect within the national territory, permanently in the Republic of El Salvador.
- The principal entity shall be liable within and outside the country for acts and contracts entered into in the Republic.
- The list of foreign personnel who will remain in the country must be accredited.
Once the NGO is established and operations have begun, Deras describes that the organization must comply with certain legal and accounting requirements, such as submitting financial statements to the Registry of Non-Profit Foundations and Associations, holding the annual meeting of the Board of Directors, maintaining an updated list of members, establishing a fiscal domicile, and filing monthly and annual tax returns.
If you have inquiries, you can contact us through our social media channels or visit our offices with our Labor Department.
-Written by the Torres Legal Team.