Doing Business in India VS El Salvador – A Comparison
Entrepreneurs and investors often face a challenging decision when choosing between India and El Salvador as their preferred business destination. Both countries offer unique advantages that cater to different business needs. While India stands out with its competitive landscape, high quality of life, and lower costs for setting up smaller businesses, El Salvador offers its own strategic benefits. This article aims to provide a detailed comparison to help you make an informed choice.
Key Comparison Points
Business Environment
- India: India boasts a stable political environment and a robust legal framework that supports foreign investments. The government actively promotes initiatives like Make in India to encourage business growth.
- El Salvador: El Salvador offers a business-friendly government with policies aimed at attracting foreign investors, but political stability can be a concern in certain areas.
Taxation
- India: The corporate tax rate in India is 22% (15% for new manufacturing companies), with various tax incentives to support startups.
- El Salvador: El Salvador has a corporate tax rate of 30%, but it provides tax exemptions for businesses operating in free trade zones.
Ease of Company Incorporation
- India: India offers a streamlined incorporation process with a growing digital infrastructure and government support for entrepreneurs.
- El Salvador: El Salvador has a relatively straightforward company registration process but may require additional regulatory compliance for foreign investors.
Cost of Living and Business Operations
- India: India offers lower operational costs, affordable office spaces, and a cost-effective living environment for entrepreneurs.
- El Salvador: El Salvador has moderate operational costs, but living expenses can vary depending on the region.
Access to Markets
- India: India enjoys strong global connectivity and is part of several trade agreements, making it an attractive hub for international trade.
- El Salvador: El Salvador benefits from its proximity to the United States and trade agreements like CAFTA-DR, giving it access to North American markets.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference:
Factor |
India |
El Salvador |
Business Environment |
Stable political and legal framework |
Business-friendly policies but potential political concerns |
Corporate Tax Rate |
22% (15% for new manufacturing companies) |
30% |
Capital Gains Tax |
Varies based on type and holding period |
10% on most capital gains |
Ease of Incorporation |
Streamlined and digitalized process |
Simple but requires additional compliance |
Business Costs |
Lower operational and living costs |
Moderate operational and living costs |
Market Access |
Global connectivity and multiple trade agreements |
Proximity to the US and CAFTA-DR benefits |

Benefits of Choosing 3E Accounting
When navigating the complexities of doing business in India or El Salvador, partnering with a reliable corporate service provider like 3E Accounting can make all the difference. With expertise in starting a business in India, a step-by-step guide to India company registration, and India company incorporation, 3E Accounting ensures a seamless setup process tailored to your needs. For company setup or any other assistance, feel free to contact us. Choose 3E Accounting for a hassle-free experience and focus on growing your business with confidence.
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Frequently Asked Questions
India offers a competitive business landscape with low operational costs and a robust legal framework. For a detailed overview, refer to our starting a business in India guide.
The process is streamlined and digitalized, making it convenient for foreign investors. Read our India company registration article for a step-by-step explanation.
El Salvador provides a straightforward registration process, but foreign investors may face extra compliance requirements compared to India company incorporation.
India has a lower corporate tax rate, especially for new manufacturing companies. El Salvador offers tax exemptions in free trade zones, but overall tax rates are higher.
Yes, India offers greater global connectivity and access to multiple international trade agreements, making it a strategic location for global business expansion.
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.