Due to the lack of taxation on crypto activities and a transparent regulatory framework, El Salvador attracts many entrepreneurs to obtain a permit in this jurisdiction. This material will examine how long it will take to open a business legally and receive an El Salvador crypto license. This will help you time things better.
Licensing process for crypto activities
Let’s look at obtaining a permit and how long each registration stage will take.
Prepare a package of preliminary documents (2 weeks)
At this stage, it is necessary to decide on the name of the company and collect the following papers:
- notarized and apostilled copies of identity cards of the company’s shareholders and management personnel;
- documentary evidence of registration of shareholders and management (this could be paid utility bills);
- notarized and apostilled power of attorney.
In addition, it is necessary to develop a brief business project for the organization, provided on two pages.
Registration of an organization and licensing process (2.5 – 5 months)
In the second stage, it is necessary to register the organization, having previously collected all corporate papers for the firm. Next, people will need to order a package of permitting papers, which are provided along with the application for a permit for crypto activities here. The application is submitted to the National Commission on Electronic Assets (NCDA).
Opening a bank account (1 – 1.5 months)
The third stage can be performed in parallel with the second. It is necessary to analyze several banks (EMI) and choose based on the risks associated with a particular bank’s activities. Paying attention to the bank’s AML (anti-illegal financial transfers) policy is also essential.
To successfully agree with a bank, you need to submit the relevant papers to the authorized person of the bank for review (movement of financial assets, confirmation of the legal origin of capital, indicating the purpose of opening a bank account, list of partner companies, etc.). It is necessary to support the client’s firm at the entire stage of opening a bank account.
From the above, registering a company and undergoing licensing can take 4 to 7 months if all stages are completed sequentially. But if you go through the second and third stages in parallel, the registration period can last 5 months.
Requirements for receiving a permit
It is worth noting that all organizations related to virtual currency must comply with the requirements based on the Law on Electronic Assets. The legal entity is registered here and then in the National Commission of Electronic Assets. The organization must have two or more shareholders. Having decided on the management team, it is necessary to prepare copies of passports, including those of all firm shareholders.
The developed business project must be considered and prove that the company can offer appropriate services related to virtual assets. The drawn-up structure of the organization should be as detailed as possible, including all the central departments, responsible officers, and positions of employees, indicating the names and surnames and their functional responsibilities. The structure must be clear and demonstrably effective for crypto activities.
Implementing an AML and KYC policy with authorized persons responsible for ensuring compliance with the relevant requirements is essential. It is also necessary to provide reliable cyber protection against attackers, including the secure storage of digital coins, data, and their integrity.
Depending on the specific circumstances, the company must maintain financial records and systematically provide data about completed transactions, shareholder data, etc. In addition, the firm must follow rules to protect users and investors, including considering the risk identification system and the process for returning financial assets.
To avoid problems and conflicts, it is necessary to actively cooperate with regulatory legislative bodies and, upon their requests, provide all the required documents and data.
Despite the lengthy process of obtaining a permit, this country is a beautiful state for business. Transparent legislation, government support, and the absence of taxes make this jurisdiction tempting for firms related to electronic assets. Having a Salvadoran crypto permit will open up broad prospects for development for the company.