The Government of El Salvador is actively supporting private enterprises in their technological advancement processes through the Innovation and Manufacturing of Technologies Act and the Electronic Signature Act. Representatives from the Ministry of Economy recently met with business leaders to elaborate on the opportunities provided by these technological legal frameworks.
In pursuit of this goal, experts from the Ministry of Economy (Minec) participated in a conference targeted at companies associated with the American Chamber of Commerce in El Salvador (AmCham), shedding light on the advantages offered by these legal tools.
The Minec shared on its social media platform, “More international companies view El Salvador as an attractive destination for establishing and expanding their investments, thanks to our commitment to driving digital transformation and promoting the adoption of Electronic Signatures.”
Among the benefits of the Electronic Signature, defined as “an indication of a person’s intention to accept the content of a document or a set of data to which the signature relates,” are the elimination of geographical barriers, enhanced interaction, improved information access, cost reduction, streamlined processes, legal backing, reliability, and security in transactions, according to the Minec.
Reformed in August 2022, this technological tool is now employed by over 200 companies, including fintech, banks, and telecommunications, as well as 30 government institutions in the country.
Simultaneously, the Innovation and Manufacturing of Technologies Act, approved in April 2023 by the Legislative Assembly, provides fiscal incentives to individuals or entities, both domestic and foreign, investing in innovation or technological manufacturing projects within the national territory.
Highlighted sectors covered by the law include programming, management, maintenance, consulting, and analysis of computer systems or software, as well as the development and commercialization of cloud computing services and data flows. It also encompasses technologies based on the manufacturing of parts, materials, and equipment or installations.
At the end of the previous year, the Minec reported more than 10 technology-related companies that had entered the country, attracted by the opportunities presented by this new legal framework. El Salvador’s commitment to fostering a tech-friendly environment continues to position the nation as a burgeoning hub for innovation and investment.