Key Benefits:
LEGISLATIVE --- LEGISLATIVE INDEX (LEGISLATIVE INDEX ) The following are the following: (i) the following: (i) the following: (i) a-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i)-(i) a-(
a-
CONSIDERING:
I.-That it is the State's obligation to promote economic and social development, through increased production and productivity;
II.-That one of the ways to promote economic and social development is through the increase of domestic and foreign investments, with which resources will be allocated to productive activities, which are necessary to generate jobs and maintain sustained economic growth, for the benefit of all the inhabitants of the country;
III.-Which is important in addition to promoting and encouraging investments in general; attract foreign investment to the country, so that with its contributions of capital, technology, knowledge and experiences, it will increase the efficiency and competitiveness of the productive activities in which these resources are destined;
IV. That in order to increase the level of foreign investments in the country, it must be established an appropriate legal framework containing clear and precise rules, according to best practices in this field, that allows it to compete internationally in the effort to attract new investments;
V.-That for all of the above, it is A government office should be set up to promote investments and provide investors with the requirements and procedures required by law;
THEREFORE,
in use of its powers. on the initiative of the President of the Republic, through the Minister for Economic Affairs and Members of the European Parliament Julio Antonio Gamero Quintanilla, Julio Eduardo Moreno Niños, Alejandro Dagoberto Marroquín, José Mauricio Quinteros, Jorge Alberto Villacorta Munoz, Lorena Guadalupe Peña Mendoza, Alejandro Rivera, Gerson Martinez, Kirio Waldo Salgado Mina, Rene Aguiluz
Calderón Lam and Gerardo Antonio Suvillaga.
DECRETA the following:
INVESTMENT LAW
INVESTMENT law and the use of the following: The following are the main points of the list of the following: CENTRAL AMERICA
legislative assembly --- LEGISLATIVE INDEX (LEGISLATIVE INDEX ) This law aims to promote investments in general and foreign investments in particular, to contribute to the economic and social development of the country, increasing productivity, job creation, export of goods and services and diversification of production.
DEFINITIONS
Art.2.-For the purposes of this law, it should be understood:
a) Investments: Those assets or resources, whether in tangible and intangible assets, provision of services or financial in national or foreign currency of free convertibility, for the execution of economic activities or for the extension or improvement of existing activities, for the production of goods or services and the generation of sources of work;
b) Foreign investment: investments made with assets or resources, whether in tangible and intangible assets, or of services or financial in currency of free convertibility, transferred from abroad by foreign investors, in accordance with this law;
Not included under the category of foreign investments, the funds coming from foreign currency of free convertibility sent by Salvadorans resident abroad, in the form of family aid or for the purchase of real estate for the housing of their family group;
c) National Investments: Investments made with assets or resources, whether in tangible assets and intangibles, services or financial services in national currency by national investors;
d) Foreign Investor: Foreign natural and legal persons and Salvadorans living abroad for more than one year
e) National Investor: The Salvadoran natural and legal persons, with permanent residence in El Salvador, who make investments in the country.
INVESTMENT TYPE
Art.3.-Within the assets or resources considered as an investment according to the (a) Article 2 of this Law is understood, inter alia, as follows:
(a) The contributions of national or foreign capital to the formation of undertakings
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LEGISLATIVE ASSEMBLY
--- LEGISLATIVE INDEX (Legislative index):-(i)----------------------------------------------------------------------------------------------------------------------------------- of national or foreign capital for the acquisition of the right ofdomain over real estate located in the country; as well as the constitution of all kinds of real rights;
c) Contributions of national or foreign capital intended for the acquisition of the right to property on tangible movable property, especially industrial plants, new and reconditioned machinery, spare parts and accessories, raw materials and intermediate products, provided that such goods are used in commercial enterprises, for any degree. The direct contribution of the said tangible movable property to new and existing commercial enterprises shall also be considered as investment;
d) The subscription or acquisition of shares or units in commercial companies In addition, capital gains from the capital gains resulting from the capitalization of profits, reserves, revaluation of assets or credits, or new contributions;
e) Capital contributions from derived profits of the original investment duly registered, which are intended for subscription or acquisition of shares or units in other commercial companies;
f) Loans contracted in foreign currency of free convertibility, intended for the production of productive activities of natural or legal persons;
g) Funds intended for the acquisition of bonds issued by legal persons domiciled in the country, in accordance with the requirements set out in the regulation of this law;
h) intangible assets internationally accepted, which include among others: property rights (i) the resources for the development of contracts for participation or investment, and the provision of services, contracts for the leasing of equipment, provision of technical services and the provision of administrative
; joint venture, which gives the foreign investor a form of participation in the industrial, commercial or service activity of a Salvadoran company, in exchange for a participation in the overall amount of your utilities.
CHAPTER II: TREATMENT TO INVESTMENTS
EASE IN FORMALITIES
Art.4.-For the purpose of national and foreign investments to be easily established and developed, the State recognizes its holders, short and simple procedures for its
can be repatriated
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LEGISLATIVE ASSEMBLY
--- LEGISLATIVE INDEX (Legislative index):-(
-(i)----------------------------------------------------------------------------------------------------------------------- investments will be the subject of the regulation of this law.
EQUALITY FOR ALL INVESTORS
Art.5.-Foreign investors and commercial companies in which they participate, will have the same rights and obligations that national investors and companies, without any exceptions, indicated by the law, without any unjustified or discriminatory measures that would hinder the establishment, administration, use, usufruct, extension, sale and liquidation of their investments.
FREEDOM TO CONDUCT INVESTMENTS
Art.6.-Any natural or legal person, national or foreign, may make investments of any kind in El Salvador, except those that are limited by law, without any discrimination or differences for reasons of nationality, domicile, race, sex or religion.
LIMITED INVESTMENT ACTIVITIES
Art.7.-In accordance with the Constitution of the Republic and secondary laws, investments in the following activities and terms shall be limited:
a) trade, industry and the provision of services in small, and specifically the fishing of lowness in the terms outlined in the law, are the exclusive patrimony of the Salvadorans by birth and of the natural Central Americans;
b) subsoil belongs to the State, which may grant concessions for its exploitation;
c) property of rustic real estate may not be acquired by foreigners in whose countries of origin do not have equal rights for Salvadorans, except in the case of land for industrial establishments;
d) A rustic land belonging to the same natural or legal person shall not exceed two hundred and forty-five hectares. This limitation shall not apply to cooperative or communal peasant associations, which are subject to special arrangements;
e) The State shall have the power to regulate and monitor public services provided by enterprises. private, as well as the approval of their tariffs, except those established in accordance with international treaties or conventions;
f) State grant shall be required for the holding of docks, railways, canals and other works public-use materials, in the form and conditions outlined in the law;
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legislative assembly --- LEGISLATIVE INDEX (LEGISLATIVE INDEX ) be subject to the limitations outlined in the laws governing these institutions.
EXPROPRIATION
Art.8.-In accordance with the Constitution of the Republic, expropriation shall be carried out for the purpose of public or of social interest, legally proven, after a fair compensation.
When the expropriation is motivated by causes of war, public calamity or when it is intended to supply water or electricity, or the construction of houses or roads, roads or " Public routes of any kind, the compensation may not be prior.
When the amount of the compensation is justified, the payment may be made in instalments, in which case the corresponding banking interests will be recognized. Such payment should be made preferably in cash.
CHAPTER III: GUARANTEES AND RIGHTS TO FOREIGN INVESTMENT
TRANSFER OF FUNDS ABROAD
Art.9.-Foreign investors are guaranteed, the transfers to the outside of the funds related to their investment, to be made without delay and their prior convertibility in foreign currency through the banking market.
Such transfers include, inter alia:
a) net profits and dividends generated by your investments;
b) Funds arising from the full or partial liquidation of the same and those resulting from the withdrawal of such investments, from their transfer to third parties;
c) Capital and interest payments arising from loans or bonds issued by legal persons domiciled in the country, acquired by the foreign investor pursuant to law;
d) Payments in respect of royalties originating from investments in intangible assets according to the respective contract;
e) Resources that would have been invested and recorded, from participation contracts or joint investments under shared risk mode, plus profits obtained;
f) Payments resulting from compensation resulting from expropriation;
g) Payments resulting from the application of the relevant provisions a solution of controversies contained in the present law;
the invention relates to the use of the following:-(a) the following:
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legislative assembly --- LEGISLATIVE INDEX (Legislative index) in the country.
SCOPE OF THE RIGHT OF REMISSION AND FREE CONVERTIBILITY.
Art.10.-The foreign investor may not claim the right of remission and free convertibility as indicated in this law, to default to: (a) its tax, labor and social security obligations; (b) its obligations to third parties, especially when there is a declaration of bankruptcy, suspension of payments or fraud of creditors; and (c) other obligations under the laws.
RESIDENCE TO INVESTORS
Art.11.-Foreign investors with a investment in excess of the four thousand minimum monthly salaries in force at the date of the They will have the right to be granted the Investor Residence to stay and work in the country. This residence shall be granted to your application within thirty days of recording your foreign investment, without further requirements than the filing: (a) of the registration of your investment, (b) of your passport issued by the authorities of your country of origin, (c) of the required health examinations; and, (d) of the respective form, with the information required by the migratory authorities.
The residence of the investor, where it is temporary shall be granted for one year, renewable for periods equals. They may also be granted permanent residence to the same investors when they have complied with the other legal requirements. The residence may be cancelled due to non-compliance with the foreign investor of the migratory legal provisions. Or because your investment register has been revoked.
The Investor Residence noted in this article will be granted to the foreign investor and his family group to accompany him, when he is a natural person. It will also be granted to the foreigner and his family group, when he has the quality of Legal Representative of the national society or foreign branch that would have been established or established in the country.
ACCESS TO LOCAL FINANCIAL
Art.12.-The foreign investor may have access to the internal financing available in the financial institutions, in accordance with the terms set by them. PROTECTION AND SECURITY TO THE PROPERTY
Art.13.-In accordance with the Constitution of the Republic, the national and foreign investors are recognized and guaranteed, the protection of their property and the right to free disposition of your goods.
Disposition of your goods.
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assembly --- LEGISLATIVE INDEX (LEGISLATIVE INDEX ) Any national or foreign investor must comply with the obligations set forth in the laws, especially those in tax, labor, and social security matters.
CHAPTER V: CONTROVERSIES
SOLUTION CONTROVERSIES
Art.15.-IN CASE DISPUTES ARISE OR DIFFERENCES BETWEEN NATIONAL OR FOREIGN INVESTORS AND THE STATE, REGARDING INVESTMENTS OF THOSE MADE IN EL SALVADOR, THE PARTIES MAY GO TO THE COMPETENT COURTS, ACCORDING TO THE CURRENT LEGISLATION AND THE PROCEDURES LEGAL PROCEEDINGS. (1)
CHAPTER VI: REGISTRATION OF INVESTMENTS
CREATION OF THE NATIONAL INVESTMENT OFFICE
Art.16.-Create the National Investment Office which may be referred to as a dependency on the Ministry of Economy, in charge of facilitating, centralizing, and coordinating government procedures that according to the law, must follow national and foreign investors, for the execution of their various economic obligations, commercial, tax, migratory and any other kind; as well as, to generate statistics on these investments, this office and their records are public.
The ONI will establish a one-stop shop to facilitate the completion of all the procedures that compete with the investors, for which the delegation will receive or collaboration that is requested from other government agencies.
For the purpose of compiling statistics on domestic and foreign investments in the country, the ONI will create the necessary mechanisms, which can be requested information to the governmental institutions that you consider, which will be
REGISTRATION OF FOREIGN INVESTMENTS
Art.17.-Foreign investors will be required to register their investments in the ONI, who will issue a Credential grant to its holder the quality of foreign investor, with expression of the registered investment.
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assembly --- LEGISLATIVE INDEX (LEGISLATIVE INDEX ) in the registration of foreign investments, to the fulfilment of the following performance requirements:
a) Export a certain type, level or percentage of goods;
b) Reach a certain degree or percentage of national content;
g) Acquiring, using, or giving preference to goods produced in the territory, or purchase goods from domestic producers;
h) Relate in any form the volume or value of the imports with the volume or value of the exports, or with the amount of the foreign exchange entries associated with that investment;
i) Restrict sales in the territory of goods or services that investment produces or provides, in any way related to such sales to the volume or value of their production, their exports or to foreign exchange earnings they generate;
j) Transfer to a natural or legal person, in the territory, technology, process production or other reserved knowledge, except where the requirement is imposed by a court or administrative court or competent authority to repair an alleged infringement of competition law or to act in a manner that does not is incompatible with national law;
k) Act as an exclusive supplier of goods that it produces or services it provides for a specific, regional or international market.
Previous literals shall be without fault as laid down in provisions contained in international treaties, and in laws which regulates environmental and public health matters.
POWERS OF THE ONI
Art.19.-ONI shall have the following powers:
a) Register all domestic and foreign investments submitted for consideration, provided that they comply with the relevant legal requirements;
b) Facilitate all investors and coordinate with other government agencies, compliance with the procedures required for the establishment of new companies and those that are subsequently to be followed for the normal development of the same;
c) Assist all investors in the legal procedures concerning the obtaining of their permits, authorizations and granting of benefits, of their companies and foreign staff,
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SAVIOR REPUBLIC --- CENTRAL AMERICA
legislative --- LEGISLATIVE INDEX (Legislative index ) Other government institutions, in order to facilitate their compliance with investors, their companies and foreign staff;
e) Establish statistics on domestic and foreign investments;
f)
PROOF OF INCOME FROM FOREIGN INVESTMENTS In FOREIGN EXCHANGE
Art.20.-Foreign investments involving the transfer of foreign currency of free convertibility shall be entered by means of the national financial system; and for the purposes of registration it shall be verified by means of Currency income, extended by the institution concerned.
PROOF OF THE EXISTENCE OF OTHER FOREIGN INVESTMENTS
Art.21.-The existence of foreign investments that do not involve transfer in currency Foreign currency convertibility shall be checked by means of contracts and other documentation to be indicated in the regulation of this law.
REQUEST FOR REGISTRATION OF FOREIGN INVESTMENT
Art.22.-To obtain the registration of your investment, the foreign investor by itself or by means of proxy, ask the ONI for the registration of the same, prior to compliance with the corresponding legal requirements. The legal representative or the proxy of the Salvadoran society in which the foreign investment is made or has been made may also follow these measures.
The ONI shall record the investment within thirty working days. the following date of the filing date of the application or of the enforcement of the prevention, if the prevention was imposed. After that period, if the registration has not yet been made, the ONI shall be presumed to have authorized it and it shall be obliged to register and issue the corresponding Resolution.
RESOURCES.
Art.23.-Of any resolution related to the Foreign Investment Register issued by the ONI, an appeal for appeal to the Minister of Economy shall be admitted, which shall be filed within three working days thereafter. the corresponding resolution has been notified; and who must resolve within the following eight working days.
Art.24.-The foreign investor is recognized the right to repatriate the foreign currency and the re-export of the tangible goods actually entered, in the cases that the Resolutions on Registration of Foreign investment issued by the Ministry of Economy, are not as requested by these investors and it is their desire to withdraw their investment from El Salvador.
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SAVIOR REPUBLIC --- CENTRAL AMERICA
ASSEMBLY --- LEGISLATIVE INDEX (LEGISLATIVE INDEX ) GOVERNMENT Art.25.-The other government agencies, institutions and agencies, whose activities are related to investments, will be obliged to collaborate with the Ministry of Economy and the Office National Investment, to achieve compliance with this law and facilitate the exercise of the responsibilities conferred upon this latter dependency. PREVIOUS FOREIGN INVESTMENT RECORDS Art.26.-The existence and validity of the foreign investment records existing in the Ministry of Economy, which remain in force, so they will automatically enjoy the guarantees and rights outlined in this law, except in matters of disputes arising prior to the validity of this law. REGISTRATION FOREIGN INVESTMENT PENDING Art.27.-Applications for Investment Registration Foreign who are pending the date of validity of this law, will continue to be dealt with in accordance with the procedure laid down in this same law. TRANSIENT Art.28.-Foreign investments than to the the date of validity of this law, are not registered in the Ministry of Economy or registered have not updated the records of their investments, they enjoy a period of 180 days to carry out their corresponding records. REPEAL OF LAW Art.2.-Deroganse from the validity of the present law, the following Legislative Decrees: a) Legislative Decree No. 960 dated April 28, 1988; published in Official Journal No. 85, Volume No. 299 of May 9 of the same year, which contains Law on the Promotion and Guarantee of Investment Foreign, as well as its subsequent reforms; b) Legislative Decree No. 279 dated March 4, 1969; published in Official Journal No. 60, Volume No. 222 of March 27 of the same year, which contains Trade Exercise Regulatory Law and Industry, as well as its subsequent reforms. LAW ENFORCEMENT Art.30.-Present Decree will enter into force forty-five days after its publication in the Official Journal. ......................................................................................................
ASSEMBLY --- LEGISLATIVE INDEX (LEGISLATIVE INDEX ) thousand nine hundred and ninety-nine.
JUAN DEH MARTÍNEZ PRESIDENTE
GERSON MARTÍNEZ CIRO CRUZ ZEPEDA PEÑA FIRST VICE-PRESIDENT, SECOND VICE-PRESIDENT
RONAL UMANA NORMA FIDELIA GUEVARA DE RAMÍRIOS THIRD VICE-PRESIDENT FOURTH VICE PRESIDENT
JULIO ANTONIO GAMERO QUINTANILLA JOSE RAFAEL MACHUCA ZELAYA FIRST SECRETARY SECOND SECRETARY
ALFONSO ARISTIDES ALVARENGA GERARDO ANTONIO SUVILLAGA GARCIA THIRD SECRETARY FOURTH SECRETARY
ELVIA VIOLETA MENJÍVAR JORGE ALBERTO VILLACORTA MUNOZ FIFTH SECRETARY SIXTH SECRETARY
CASA PRESIDENTIAL: San Salvador, on the fourteenth day of October of a thousand nine hundred and ninety-nine.
PUBESQUIESE,
FRANCISCO GUILLERMO FLORES PÉREZ, President of the Republic.
Miguel Ernesto Lacayo Argüello Minister of Economy
D. . N ° 210 Tomo N ° 345 Date: 11 November 1999
Nominal Number of the number of persons in the country where the number of persons in the case of the Union is not less than that of the other Member State of the Union
following are the case in point (b) of the first paragraph of Article 4 (1) of the Treaty.
LEGISLATIVE ASSEMBLY --- LEGISLATIVE INDEX (LEGISLATIVE INDEX ) The following are the following: (i) the following: (i) the following: (i) the following: (i) the following: (i) the following: (i) the following: (i) the following: (i) the following: (i) the following: (i) the following: (i) the following: (a) the following: (a) the following: (1) (1) (1) (1)
1) 1) (1) (
), (2 , (2), (2), (2), (2), (2), (2), (2), (3), (2), (2), (3), (2)EXTENSIONS OF VALIDITY:
D.L. NO 807, 16 DECEMBER 1999; D.O. NO 240, T. 345, DECEMBER 23, 1999.
D.L. Nº 853, FEBRUARY 23, 2000; D.O. NO. 65, T. 346, MARCH 31, 2000.
OALR/ngcl
SV 28/08/13
