Key Benefits:
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
1
DECREE No. 667
THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR, CONSIDERING: I.-That in accordance with the provisions of Art. 115 of the Constitution of the
Republic, the State must promote the The protection and development of Micro and Small Enterprises.
II.-That the Constitution of the Republic in its title V, among other things states,
that the economic order must respond essentially to principles of social justice, which tend to assure all the inhabitants of the country an existence worthy of the human being; State will promote economic and social development through increased production, productivity and rational utilization of resources. For the same purpose, it will foster and protect private initiative within the necessary conditions to increase national wealth and ensure the benefits of the country's greatest number of inhabitants.
III. developed by the Micro and Small Enterprises contribute
in a great way to the sustainability and growth of the national economy within the framework of the private initiative, being one of the main generators of jobs due to its the potential to contribute to the sustainable development of the country and to the creation of decent jobs in a level playing field between men and women, being a significant factor for the increase in production; a means of achieving the human person; a source of stability, security and education for the sectors in the greatest conditions vulnerability and a means to foster social cohesion in urban and rural communities.
IV.-That Art. 24 of the Law on Equality, Equity and Eradication of the
Discrimination against Women establishes that the State should among other things, promoting the economic participation of women on equal terms and non-discrimination, creating programs and projects that enhance women's economic autonomy; likewise, it must develop strategies to reduce inequality gaps between women and men in terms of access, use and decision-making. on productive resources and access to employment.
V.-That it is a priority for the State, to promote sustainable and sustainable development
of Micro and Small Enterprises in consideration of their skills for the generation of jobs, the regional development, integration between economic sectors, productive use of small capitals and the entrepreneurial capacity of the Salvadoran women and men.
VI.-That it is important for the State to provide the necessary support to such units
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
2
economic, in order to strengthen them, encouraging their formalization and sustainment, for which they must provide them with agile and simple procedures for their constitution, development, liquidation and closure.
FOR TANTO, in use of their constitutional powers and on the initiative of the President of the Republic, through the Minister of Economy, to which the members of the Commission, Eduardo Enrique Barrientos Zepeda, Blanca Noemi Coto Estrada, Jose Francisco Merino Lopez, Edwin Victor Alejandro Zamora David, gave their support. Roberto José d = Aubuisson Munguía, Francisco Roberto Lorenzana Duran, Rodolfo Antonio Martinez, Cesar Humberto Garcia Aguilera, Francisco Jose Zablah Safie, Douglas Leonardo Mejia Avilés, Abner Ivan Torres Ventura, Martir Arnoldo Marin, Jose Alvaro Cornejo Mena, Walter de Jesus Montejo and Bertha Mercedes Avilés de Rodríguez, DECCRETA the following: PROMOTION, PROTECTION AND DEVELOPMENT LAW FOR MICRO AND SMALL BUSINESS
TITLE I GENERAL PROVISIONS CHAPTER SINGLE OBJECT, NATURE, PURPOSE, SCOPE OF APPLICATION AND CLASSIFICATION Object and Nature
Art.1.-This Law aims to promote the creation, protection, development and strengthening of Micro and Small Enterprises, also known as MYPE, and contribute to strengthen the competitiveness of existing ones, improving their capacity to generate jobs and value added to production; to promote greater Access for women to entrepreneurial development in conditions of equity, and constitutes the general framework for the integration of women into the formal economy of the country, through the creation of a favourable, equitable, inclusive, sustainable and competitive for the smooth functioning and growth of this business sector. Purpose
Art. 2. This Law aims to stimulate the Micro and Small Enterprises in the development of their competitive capacities for their participation in the national and international markets, their associativity and productive chains; facilitating their opening, development, sustainability, closure and liquidation through:
a) Establishing the foundations for the planning and execution of activities aimed at the articulation of Micro and Small Enterprises with territorial development;
b) Establish an interinstitutional coordination system as an instrument of support for the
Micro and Small Business development and development policies, which harmonises the management of the various public and private entities;
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
3
c) Promote the creation of a business culture of innovation, quality and productivity
that contributes to the advancement of the production, marketing, distribution and customer service processes of Micro and Small Enterprises;
d) Promote facilitation and simplification of procedures
e) Promote the existence and institutionalization of programs, instruments and business services for the strengthening and development of Micro and Small Enterprises, with emphasis on those aimed at improving the situation and needs of women entrepreneurs and entrepreneurs;
f) Effectively expanding the policies of development and development of Micro and Small Enterprises
Enterprise, promoting greater coordination between the public and private sectors;
g) Promote access to services and resources financial for Micro and Small Business, increased production, new business creation and consolidation of existing ones.
Classification
Art. 3.-Micro and Small Enterprises shall be classified as follows:
a) Microenterprise: Natural or legal person operating in the various sectors of the economy, through an economic unit with a level of gross annual sales up to 482 minimum monthly minimum wages and up to 10 workers;
b) Small Business: Natural or legal person operating in the various sectors of the
economy, through an economic unit with a level of sales Annual gross of higher than 482 and up to 4.817 monthly minimum wages and up to 50 workers.
When a natural or legal person does not meet the conditions previously established, their
classification will be determined by their annual gross sales.
Public and private entities must unify the (a) a uniform basis for the design and implementation of the public policies for the promotion and formalisation of the sector, in order to build a homogeneous database to ensure consistency in the design and implementation of public policies. Permanence of the MYPE Condition
Art. 4.-For the permanence of the condition of MYPE, in the context of this law the following will be taken into account:
Micro enterprises that exceed for a period of two consecutive years the conditions to the
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
4
as referred to in Article 3, shall be subject to the corresponding classification.
Small Enterprises exceeding or decreasing for a period of two consecutive years the conditions referred to in Article 3; move to the corresponding classification. TITLE II INSTITUTIONAL FRAMEWORK CHAPTER I OF POLICIES AND GUIDELINES Support for New Enterprises
Art. 5.-The Central Government and the Municipalities will foster support for new ventures and already existing MYPE, encouraging private investment, promoting an offer of business services and financial services in conditions of equity. The aim is to improve the levels of organization, administration, production, productive and commercial articulation. Guidelines
Art. 6.-The action of the State and the Municipalities in matters of promotion of the MYPE, will be oriented according to the following strategic guidelines:
a) Promote and develop programs and instruments that stimulate the creation, the development and the competitiveness of MYPE in the short, medium and long term, and to promote the economic, financial, social and environmental sustainability of the stakeholders involved;
b) Promote and facilitate the consolidation of business and productive through
the articulation between sectors, at the municipal level, departmental, national and international relations and the relations between productive units of different sizes, promoting the association of the MYPE and the integration in productive, distributive chains and lines of activity, with distinct advantages for the generation of employment and economic partner development;
c) Promoting the entrepreneurial and creative spirit of the population, supporting the creation of
new companies; promoting private initiative and investment and free competition; and intervening in those activities where it is necessary to supplement the actions To perform the private sector in support of MYPE;
d) Facilitate the effective participation of MYPE in public administration purchases
public;
e) Achieve efficiency in action and inter-institutional coordination through specialization by economic activity;
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
5
f) Promote and actively promote in conditions of equity, women's access
entrepreneurs and entrepreneurs to the opportunities offered by the programs of promotion, formalization and business development, promoting their access to productive resources, training, technical assistance and financing needed to implement or strengthen their enterprises;
g) Propose that the design of promotion and development instruments provides for compliance with international regulations and commitments signed by the State and ratified by the Legislative Assembly.
CHAPTER II INSTITUTIONALITY Rector Body
Art. 7.-The Ministry of Economy will be the Governing Body for the implementation of the content of this Law, which in coordination with the National Commission of Micro and Small Enterprises (CONAMYPE), will design and define national policies for the promotion and development of the competitiveness of MYPE, as well as sectoral policies including the gender approach and programmes for the sustainable development of these. Authority of the Rector Authority
Art. 8. The Ministry of Economy, for the purposes of this Law, will have the following powers:
a) Implement the National System for the Development of Micro and Small Enterprises, as well as promote their organization, integration and functionality;
b) Propose to the Ministry of Education, in coordination with CONAMYPE and Institutions of
Higher Education, the adequacy of education programs, in accordance with the business development needs of MYPE;
c) Promote the creation of industrial and technological parks; quality centers,
innovation, research, productive and technological development, as well as enterprise creation programs that allow the development of MYPE;
d) Promote growth, diversification and consolidation of exports,
implementing market and product offering strategies developed by MYPE;
e) Incentives for women's participation in the MYPE sector to strengthen their
enterprises and enterprises, to make their contribution to the national economy and promote their access to decision making in the spaces of representation;
f) Promote mechanisms for easing and simplifying procedures to facilitate the
creation, merger, transformation, closure and liquidation of MYPE;
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
6
g) Analyze the economic, political and social environment with a gender-based approach, its impact on
MYPE and on the ability of MYPE to boost its competitiveness in goods and services markets;
h) Support the dynamisation of local economies and the construction of tissues
productive, from the business services awarded to the MYPE; i) Promote the diversification of the supply of financial and non-financial services,
decentralized and relevant to the needs and potentialities of the Sector MYPE, as well as access to them;
j) Interinstitutionally coordinate the different programs and conventions for the
promotion, training and transfer of technology for MYPE, which are carried out within the framework of the plans and governance policies.
Executor Organ
Art. 9.-The National Commission of Micro and Small Enterprises, CONAMYPE, will be the executive body of the National Policies for the Promotion, Development and Competitiveness of the MYPE, which will aim to promote the development of Micro and Small Enterprises. in the framework of the strategies of inclusive, equitable and sustained development of the country, contributing in this way to the development of the productive base at the local and national level through the implementation of national policies of promotion and development of the competitiveness of MYPE. Executor Authority Functions
Art. 10. In order to implement and implement the National Policies for the Promotion, Development and Competitiveness of MYPE, CONAMYPE will have the following functions:
a) Propose to the Governing Body the national policy of the sector, which will have to strategies, programs, projects and actions, conducive to the development and integration of Micro and Small Enterprises within the country's development strategy;
b) Coordinate with public and private institutions, both national as international,
actions to implement the policy national, aimed at the creation and development of micro and small enterprises, especially through the provision of technical and financial assistance services;
c) Coordinate and harmonise general public policies, cross-cutting,
regional promotion and support for MYPE;
d) Maintain an up-to-date knowledge of the environment of MYPE, through ongoing research, that will allow in coordination with the governing body, the design of policies and actions for the proper development of the sector, as well as assessing and measuring their impact;
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
7
e) To promote and maintain effective communication with private and public institutions and institutions, national and international, that facilitate financial and non-financial services to the sector, to promote diversification and the access of MYPE to such services and financial resources, in equity conditions;
f) Coordinate with the entities responsible for management and negotiation, of the resources
technical and economic support to the MYPE and national and international agencies;
g) Carry a record updated by trade unions, non-governmental organisations and national support programmes directly related to the MYPE sector, which will serve as a basis for the calls for candidates to be submitted or candidates to integrate the National Commission;
h) Coordinate the National System for the Development of Micro and Small Business,
fostering the organization, associativity, integration and functionality of the Micro and Small Business, fostering the progressive incorporation of the gender approach;
i) Define, formulate, promote, execute and coordinating promotion programmes and instruments
to entrepreneurship and business creation, which will encourage women's economic autonomy;
j) Provide information on the administrative registers of MYPE in CONAMYPE, which
contribute to the mounting of a standard system of official statistics;
k) Participate in the mechanisms that promote the flexibility and simplification for the creation, fusion, transformation, closure and liquidation of MYPE and in its dissemination;
l) Promote the formation of an entrepreneurial and entrepreneurial culture, as well as a
culture with a focus on corporate social responsibility and sustainable environmental management;
m) Promoting national or local meetings of MYPE;
n) Contributing to the definition and implementation of promotion and promotion programmes of the MYPE,
with emphasis on access to markets for goods and services, Human capital formation, modernization, technological development and innovation, under flexible conditions and conditions of access, according to the requirements of the sectors;
o) To promote the articulation of the MYPE, with the Medianas and the Great Companies, for the
supplier of goods and services, thereby fostering the strengthening and development of their productive economic structure;
p) Develop instruments that generate an information and consultation system, for the
planning of productive sectors and production chains programs,
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
8
strengthening the negotiation capacity of the MYPE;
q) Coordinate with the governing body or with whom it corresponds, the follow-up actions of ratified International Conventions and Treaties, concerning the sector MYPE;
r) Promote the integration of cooperative associations in the query instances, to
municipal, departmental and national level;
s) Promote horizontal trade between MYPE, with the aim of stimulating employment and income generation and the corresponding scale economy;
t) Promote access to public procurement, through providing information regarding mechanisms and opportunities; as well as generating capacities in MYPE to provide the State with, and creating spaces for the meeting between MYPE and the institutions of this;
u) Represent in coordination with the governing body, the State, in all national or international bodies, as well as to participate in any activity of a national and international nature in which aspects related to MYPE are discussed or agreed, without prejudice to the participation of others public or private partners;
v) Assess the legislation on the subject, and propose legislation or reform projects
legal to the governing body, to be adapted to the promotion, promotion and development of the MYPE, as appropriate;
w) Subscribe conventions with different public and private institutions and institutions, for
develop programs whose nature will support the development and consolidation of MYPE;
x) Other attributions that establish laws.
CHAPTER III OF THE NATIONAL SYSTEM FOR THE DEVELOPMENT OF MYPE National System
Art. 11.-Create the National System for the Development of MYPE as a mechanism for inter-institutional coordination, comprising and implementing the set of actions by the public sector and the private sector, in line with the objectives of This Law, for the development of MYPE.
The System will be composed of a National, Departmental, Municipal and Sectoral Committee. System Object
Art. 12.-The system aims to execute policies, plans, programs, instruments, and
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
9
services at national, departmental, municipal and sectoral levels, for the promotion and development of micro and small enterprises, seeking their competitiveness, associativity and productive chain, as well as access to markets national and international. National Committee
Art. 13.-Create the National Committee of the MYPE, hereinafter the Committee @, as an instance of consultation between the Ministry of Economy, through CONAMYPE and the business associations linked to the Micro and Small Business, municipal government, sectors The European Commission has also been responsible for the development of the European Economic and Economic Commission for the European Economic and Economic Committee, and the Committee on Economic and Economic and Economic and MYPE National Committee Functions
Art. 14.-Contribute to the coordination and harmonization of policies and sectoral actions in support of MYPE, at the national, departmental and municipal level.
Monitor the implementation of policies, plans, programmes, and develop the the coordination necessary to achieve the objectives proposed at both the central, departmental and municipal levels.
The operation of this instance, as well as that of the departmental, municipal and sectoral committees, will be regulated by the Regulation of this Law. National Committee Chair
Art. 15. The Presidency of the Committee shall be charged to the President or President of CONAMYPE, who shall convene the public and private institutions deemed necessary to promote the development of MYPE. Departmental and Municipal Committees
Art. 16.-Create the departmental and municipal committees of the MYPE, as instances of consultation between municipal governments, productive sectors, micro and small entrepreneurs and entrepreneurs organized as sectors or guilds, universities and institutes of higher education, associative groups and private bodies to promote MYPE. Department and Municipal Committee functions
Art. 17. To approve the departmental and municipal plans for the promotion and formalization of the competitiveness and development of the MYPE, which incorporate the sectoral priorities of the departments and municipalities, pointing out the objectives and objectives with the projection of development of their territories.
Contribute to the coordination and harmonization of the policies and sectoral actions of support to the MYPE, departmental and municipal level.
Monitor the implementation of the MYPE promotion policies, plans, and programs, in
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
10
its territorial scope.
The other functions assigned by this Law and its regulations. Sectoral Committees
Art. 18.-Create the sectoral committees, as an instance of consultation where the different MYPE partners according to the productive activity they develop.
These committees will have the purpose of promoting and supporting the design of policies in accordance with the characteristics and needs of each of the sectors they represent and contribute to the national policy for the development of MYPE. Calls
Art. 19. The convening and coordination of the departmental, municipal and sectoral committees shall be held by CONAMYPE, at least twice a year or when deemed necessary, in accordance with the provisions of this law and its regulations. TITLE III OF THE ECONOMIC INCLUSION OF THE MYPE CHAPTER I REGISTRATION, BENEFITS, AND EASE OF PAPERWORK OF THE MYPE Registry
Art. 20.-The persons interested in obtaining the qualification of Micro Enterprise, Small Business Enterprise or enterprises of economic initiatives, which in the text of this law will be called MYPE, must register in CONAMYPE, through a form electronic that will be made available to the applicant, or through a physical form, which will be provided in the offices of that institution.
This record is intended to have a broad database, which allows identify and categorize MYPE, according to the concepts, parameters and criteria established in the Law. This is in order to provide adequate assistance to MYPE. From Administrative Procedures Simplification
Art. 21. Each of the governmental institutions that have a relationship with the Micro and Small Business, Associative or Individual, will carry out the simplification of the administrative procedures that will be carried out before them. To this end, they will annually draw up their respective plans for simplification of procedures, based on the following guidelines:
a) Delete those unnecessary procedures that increase the operational cost and make the process less efficient. Public Administration;
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
11
b) Simplify and improve procedures, reducing requirements and requirements to the
entrepreneurs and entrepreneurs, establishing homogeneous instruments that facilitate their registration and control, leaving only the indispensable to fulfill the purpose of the same;
c) Use the maximum technological elements, incorporating automated controls that
minimize the need for additional monitoring and control structures;
d) Review of the instruments used, in order to remove formal barriers and Informal, which limit or hinder the access of companies and particularly women entrepreneurs and entrepreneurs, to the development services of MYPE;
e) Use the computer platform for virtual realization of business start, operation and closing procedures;
f) Plans must contain the proposals for reform of laws and regulations,
when they correspond. Verification of Procedure Simplification
Art. 22.-The Ministry of Economy, through the National Investment Office, and with the participation of CONAMYPE, will issue a regulation that normalizes and categorizes the information, including deadlines and facilities that will provide each of the institutions involved in this process. Creating the Single Window
Art. 23.-Create the one-stop shop for the systematization and simplification of procedures related to MYPE. Collaboration Obligation
Art. 24.-All governmental bodies, autonomous institutions, municipalities and their owners shall be obliged to cooperate with CONAMYPE for the execution of the purposes of this law, and may delegate functions in accordance with the rules of procedure of the Executive Body, respective laws and the Municipal Code in their case.
The rules of this law shall provide for procedures and means for such cooperation. Setting Single Windows and Information Exchange
Art. 25.-CONAMYPE shall establish in its central and regional offices a single, physical or virtual window, which shall be integrated in accordance with the provisions of the preceding article, in order to facilitate the completion of the formalities to be carried out by the MYPE, and will be assisted by the IT platforms that the Ministry of Economy has enabled for this purpose.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
12
In performing these procedures, data can be physically and electronically exchanged to
effect of facilitating compliance with the functions of each organism. The electronic transmission shall be understood to be in accordance with the technical parameters or international standards agreed jointly between the bodies involved.
Copies or reproductions resulting from the reports, records or logbooks, obtained through the electronic means of the formalities carried out in the single window, shall have the value of the public documents, provided that such reproductions are certified by the responsible official; the documents and Other electronically transmitted data shall have the same value and effectiveness probate as if it had been obtained in handwritten form; in case of difference between the contents of the documents recorded or archived electronically and the physical or original documents, the first ones will prevail.
The staff This information must be kept strictly confidential by the institutions, agencies and users of the services. Support for Formalization
Art. 26.-CONAMYPE will support entrepreneurs and entrepreneurs of micro or small enterprises in the fulfilment of their formal obligations, through training, technical and legal support. Institutional Assistance
Art. 27.-State institutions that require for their formalities, natural persons ' balance sheets, which under the Trade Code are not required to deposit them, must provide pro forma, financial statements for the The interested parties should be provided with advice for their compliance. MYPE Accounting
Art. 28.-The individual or associative MYPE shall carry its financial information in accordance with the accounting principles, approved by the competent body of the State exercising the supervision and the legal nature of the business concerned.
International financial reporting standards for Micro Enterprise will not be mandatory, but they should serve as a reference for formulating the principles that apply to them, taking into account financial circumstances, Organisational and nature training. This does not exclude the Micro Company from complying with the accounting obligations that are established in other laws.
Prior opinion of the Ministry of Economy and CONAMYPE, the Board of Surveillance of the Accounting Office Public and Audit, shall determine the rules applicable to the agencies indicated above, for which it will issue the General Accounting Plan, and whose provisions will be mandatory for the MYPE, individual or associative.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
13
Compliance with Legal Obligations
Art. 29.-The Micro and Small Business must comply with its legal obligations as of the date of its formalization. To this end, within the scope of its legal powers, governmental entities through CONAMYPE will establish coordinated actions to facilitate business assistance that improve the conditions of MYPE, in order to comply with their obligations. Government Purchases
Art. 30.-The institutions of the State will promote and promote the participation of the MYPE, in equal conditions in the purchases of the State, establishing the mechanisms of participation, in consultation with CONAMYPE.
CONAMYPE will monitor and publish, at least every three months, the fulfillment of the percentage of purchases that government entities make to MYPE, on the website or other means that the institution establishes, considering the compliance with the provisions of the Law. Procurement and Procurement of Government Goods and Services
Art. 31.-In the hiring and acquisition of goods and services, the State entities will have to consider those offered by the MYPE, prioritizing those of the place where the good or service is being demanded, providing for the adequacy of the required technical specifications and which are offered under similar conditions of quality, opportunity and price.
In the technical specifications for purchase, public institutions shall define purchases from MYPE, and these shall be be published on the electronic portal of PURCHASE, which must be easily accessible and understood by MYPE. Cancellation Time
Art. 32.-The institutions of the State shall cancel the goods and services acquired by the MYPE, within a maximum period of 30 days after receiving them. Resarciation for Cancellations Incompliance
Art. 33.-If the period referred to in the preceding article has been exceeded, without the cancellation of the contracted goods and services, the institutions of the Contracting State shall compensate for the delay with compensation to the For the MYPE, equivalent to the commercial legal interest on the sums due. Role of the Female Managers
Art. 34.-The MYPE meeting the requirements of this Law shall be considered to be consumers, in order to comply with the Law on Consumer Protection, with regard to the legal acts they hold with their suppliers.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
14
The above does not absolve you of your responsibility as a supplier in your relationship with the
final consumer. Environment and Natural Resources
Art. 35.-The Ministry of the Environment and Natural Resources will establish the appropriate requirements for their nature and conditions to be filled by Micro and Small Enterprises, which will facilitate their performance and development in equity of conditions to others. companies, according to the categorization of works or projects established in Art. 22 of the Law of the Environment.
The Ministry of Economy and CONAMYPE will publish in their electronic sites the requirements and forms mentioned above for This procedure. Municipal Tariff Regimes
Art. 36.-The municipalities will be able to establish favorable special regimes, on the fees and contributions for services, in order to stimulate the creation and development of the MYPE, and consequently, to favor the local economic dynamics, being able for such purposes, to establish, among other measures, exclusions, exonerations, grace period and lower rates than ordinary ones. Tax Simplification
Art. 37.-The Ministry of Finance will establish a simplified system for the enforcement of tax obligations, as well as a special tax regime applicable to the entities concerned with this Law.
The special tax regime to which refers to the foregoing paragraph, shall be issued within a period not greater than 180 days from the entry into force of this law. CHAPTER II OF THE PROGRAMS AND INSTRUMENTS Generalities
Art. 38.-CONAMYPE will encourage MYPE, providing them with access to and use of the promotion and development instruments, in order to create a favourable environment for their competitiveness. Programs and Instruments
Art. 39.-They constitute programmes and instruments for promotion and development for MYPE, the following: training, technical assistance, innovation, quality and technological development, financing, venture capital, programmes of guarantees, marketing, information, associativity, productive chains, the instruments for formalisation, programmes and instruments for the promotion of enterprises and enterprises led by women, programmes and programmes
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
15
of promotion to exports, tax and municipal incentives and others that are developed for the benefit of the sector. Implementation of the Programs
Art. 40.-For the implementation of the programs and instruments for the promotion and development of MYPE, the State, through the governing body, will provide and facilitate access to necessary financial and technical resources, for which the implementing entity will have administrative and financial autonomy in the use of the same. Getting Resources
Art. 41.-CONAMYPE, in coordination with the Ministry of Foreign Affairs and the Technical Secretariat of the Presidency of the Republic, will manage with National and International Organizations, technical and financial resources to support the programs and instruments for the promotion and development of MYPE, as well as receiving and channelling such resources in accordance with the conventions to which they are signed. Training and Technical Assistance
Art. 42.-CONAMYPE will provide comprehensive training, technical and financial advisory services to address the various stages of the administrative and economic process, aimed at improving the competitiveness of MYPE that meet the criteria that are set out in the Law Regulation. Participation of Private and Public Entities in Business Development Services
Art. 43.-Within the Program for the Promotion and Development of Micro and Small Enterprises, CONAMYPE will promote with the support of higher education institutions, private non-profit organizations and/or state entities, the Development Centers of the Micro and Small Business, to implement training programs, technical assistance, business and financial advice for MYPE, including specific programs to promote the participation of women entrepreneurs and entrepreneurs, as well as all those deemed necessary for that purpose. Business Services Implementation Resources
Art. 44.-The training, business and financial advice and technical assistance provided through the managed resources, will be exclusively for the Micro and Small Business. Access to Financing
Art. 45.-State Banking will promote the access of MYPE to credit and other sources of financing, through coordination and consultation with the Ministry of Economy, for creation and
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
16
strengthening financial instruments, guarantee systems, trusts, leasing and venture capital, among others, directly or through all financial intermediaries specializing in the MYPE. State Banking Participation
Art. 46.-The State Banking, within its services, shall have the obligation to provide financial, non-financial and capital market development services, which meet the needs of MYPE, including appropriate instruments and accessible to businesses owned by women. El Salvador Development Bank
Art. 47.-The Development Bank of El Salvador, BANDESAL, will have to establish lines for the financing of Micro and Small Enterprises, including adequate and accessible instruments for businesses owned by women entrepreneurs and entrepreneurs, for which shall enter into agreements or contracts of operation with financial intermediaries that meet the specific eligibility criteria established, in coordination with CONAMYPE and in accordance with the nature of the eligibility criteria. Guaranty Programs for MYPE
Art. 48.-State Banking will promote the creation and strengthening of guarantee programs and other mechanisms of funds to MYPE, with a gender-based approach, that will allow access to financing and thus contribute to the development of the competitiveness of on the local and external market. Creating Risk Capital Investment Funds
Art. 49.-State Banking will promote the creation of Risk Capital Investment Funds that will temporarily participate in the capital structure of MYPE, encouraging companies to present a high potential for sustainable growth and new enterprises, to expand the national productive base. CHAPTER III OF THE FONDS FOR THE MYPE GUARANTEE PROGRAM FOR THE MYPE Creation
Art. 50.-Create the Program of Guarantee for Micro and Small Enterprises, PROGAMYPE, to support loans to the Micro and Small Enterprises, the cualtéloto will contribute to the growth and integration of the MYPE to the national and local economy. The Program is initially constituted with a sum of ten million dollars from the United States of America (US$ 10,000,000.00), contributed by the State, with resources of the General Budget of the Nation, which will be disbursed in a way gradual and depending on the development of the programme.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
17
You can guarantee short, medium and long term loans, up to ninety percent of the amount financed.
Private financial intermediaries will be able to access the guarantee program for the Micro and Small Business.
This fund will be administered according to the Regulation to be issued by the Executive Body, with the aim of ensuring its self-sustainability, a regulation that must be approved within a period of no more than 180 days after the validity of this Law. Resources
Art. 51.-The resources of PROGAMYPE, in addition to the initial contribution indicated in the previous article, will come from:
a) The General Budget of the Nation;
b) The revenue generated by its own operations;
c) Donations received from national and international institutions;
d) Any other input from state resources and intended for this fund, by law.
CHAPTER IV FUND FOR ENTREPRENEURSHIP AND CAPITAL JOB Creation
Art. 52.-Create the Fund for Entrepreneurship and Working Capital, to finance new projects or micro and small enterprises already existing in all productive sectors, with emphasis on those whose contents incorporate technological components, environmental, promoting the entrepreneurship of women and promoting gender equality in the MYPE sector, with an initial contribution of 5 million dollars from the United States of America (US$5,000,000.00), which will be disbursed gradually from funds from the general budget of the nation. With these funds, we will be able to support short-, medium-and long-term loans.
Companies and entrepreneurs that are favored by loans from this fund, must have this credit a day, prior to distributing dividends or profits.
This fund will be supervised by CONAMYPE and administered by the institutions that it designates, in accordance with the Regulation issued by the Executive Body that for this purpose should be approved within a period not greater than 180 days after the validity of the This Law. Resources
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
18
Art. 53.-The Fund should contribute to the emergence of new projects, micro-enterprises and small businesses that are already existing, competitive and sustainable; in addition to the initial contribution indicated, it will be possible to come from:
a) The General Budget of the Nation;
b) The revenue generated by its own operations;
c) The inheritances, legacies and donations received in favour; by public or private, national or international institutions or persons;
d) Any other contribution from State resources and destined for this Fund by
legal provision. CHAPTER V OF THE ECONOMIC PARTICIPATION FACILITIES Business Partner and Institutional Strengthening of the Grems
Art. 54.-The Ministry of Economy and CONAMYPE will promote the business partnership so that MYPE can be associated and thus have greater market access, including public procurement, and thus be able to enjoy the benefits and measures of promotion of this Law.
CONAMYPE will promote and strengthen the formation of business associations and their development, providing them with advice, training and business and financial assistance, thereby strengthening the culture of participation of the MYPE, in an organized way, in all economic activities of the country, as well as to make visible and enhance the role of women entrepreneurs in the sector. Benefits of Associative Groups
Art. 55.-The associative groups formed by the MYPE, will also enjoy the benefits granted by this Law. Developing Vendor and Productive Chains
Art. 56.-The Ministry of Economy and CONAMYPE, as a whole, will promote business and financial advisory programs, training and technical assistance to MYPE, in order to prepare them and convert them into providers among themselves, the median
Ministry of Economy and CONAMYPE will be able to promote and finance the realization of local, national and international fairs and exhibitions. international.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
19
Promotion of Exports
Art. 57.-The Ministry of Economy, in coordination with other public and private institutions, will promote the growth, diversification and consolidation of the direct and indirect exports of the MYPE, implementing development strategies the markets and the exportable supply, as well as the promotion of the improvement of the business management. International Promotion of MYPE
Art. 58.-The Ministry of Economy and CONAMYPE, will promote strategic alliances between the MYPE and the Salvadoran population resident abroad, to create a system of intermediation and investments that articulates the offer of this business sector, with international markets. Export Promotion Information
Art. 59.-The Ministry of Economy, in coordination with the other institutions of the system, will generate and disseminate information accessible to the MYPE, on export opportunities and access to international markets, including the demand for products or services, as well as the tariff rules and conditions to be met. Technical Assistance for Export
Art. 60.-CONAMYPE will promote the growth of MYPE with export capacity, through technical assistance and specialized advice. Technical Standards
Art. 61.-The State, through the Ministry of Economy, will promote and disseminate technical standards and product quality certification, so that MYPE can adapt its production to the quality and competitiveness standards required by the national and international market. Quality, Innovation and Technology Services Development
Art. 62.-The Ministry of Economy and CONAMYPE, in coordination with other public institutions, private and universities, will promote the quality, innovation and technological development of MYPE. Using Information and Communication Technologies
Art. 63.-CONAMYPE will promote the technological modernization of MYPE, and promote the use of technological services through training, counseling and technical assistance.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
20
Coinvestments
Art. 64.-The State, through the Salvadoran Investment Corporation, CORSAIN, will promote co-investments for MYPE that constitute links or productive sectors of high potential for growth and job creation, and promote higher levels of
way to grant co-investments will be developed by the Ministry of Economy and CORSAIN, in a special regulation. Creating a MYPE-friendly environment in the territories
Art. 65.-Local governments will be able to design policies, regulations and programmes for the promotion and development of MYPE, creating the conditions for efficient and effective public services that allow MYPE to develop and transport production and the incorporation of added value into their products and their marketing. TITLE IV ONLY CHAPTER FINAL PROVISIONS MYPE Exception Regime
Art. 66.-For the purposes of this Law, they shall not be subject to it, the following:
a) Those who fulfil the conditions laid down as regards the level of sales and number of workers, have economic participation, have an impact on the management and
b) Those belonging to an economic group which as a whole exceeds those limits;
c) Natural and legal persons not covered by Article 115 of the Constitution.
Transitory
Art. 67.-All the institutions related to the implementation of this Law shall have six months to make the necessary adjustments in order to comply with the provisions of this Law. Regulation
Art. 68.-The President of the Republic shall issue the General Regulation of this Law, within a maximum of 120 days from its validity.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
21
Vigency
Art. 69.-This Decree will enter into force eight days after its publication in the Official Journal.
GIVEN IN THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, at the twenty-five days of the month of April of two thousand fourteen. OTHON SIGFRIDO REYES MORALES, PRESIDENT. ENRIQUE ALBERTO LUIS VALDEZ SOTO, GUILLERMO ANTONIO GALLEGOS NAVARRETE,
FIRST VICE PRESIDENT. SECOND VICE-PRESIDENT. JOSÉ FRANCISCO MERINO LÓPEZ, FRANCISCO ROBERTO LORENZANA DURAN, THIRD VICE PRESIDENT. FOURTH VICE-PRESIDENT.
CARLOS ARMANDO REYES RAMOS, FIFTH VICE PRESIDENT.
LORENA GUADALUPE PEÑA MENDOZA, MANUEL VICENTE MENJÍVAR ESQUIVEL,
FIRST SECRETARY. SECOND SECRETARY. SANDRA MARLENE SALGADO GARCÍA, JOSÉ RAFAEL MACHUCA ZELAYA,
THIRD SECRETARY. FOURTH SECRETARY. IRMA LOURDES PALACIOS VÁSQUEZ, ERNESTO ANTONIO ANGULO MILLA,
FIFTH SECRETARY. SIXTH SECRETARY. FRANCISCO JOSE ZABLAH SAFIE, JOSE SERAFIN ORANTES RODRIGUEZ, SEVENTH SECRETARY. EIGHTH SECRETARY.
CASA PRESIDENTIAL: San Salvador, at the sixteen days of May of the year two thousand fourteen.
PUBESCOESE, Carlos Mauricio Funes Cartagena, President of the Republic. José Armando Flores Alemán, Minister of Economy.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
22
D. O. N1 90 Tomo N1 403 Date: 20 May 2014 JCH/ngcl 27-06B2014
