Ecuador is located in Western South America, bordering the Pacific Ocean at the Equator, between Colombia and Peru. This country from Western Latin America has a well-developed economy and enjoys great petroleum resources as well as crude oil production, therefore many foreign investors make the decision to open a company in Ecuador. The country is greatly dependent on its petroleum resources, which have accounted for more than half of the country’s export earnings and approximately two-fifths of public sector revenues in recent years. Record oil revenues in Ecuador are sparking new infrastructure projects throughout the country.
Concerns When Setting Up a Company/Corporation in Ecuador?
– In Ecuador, 100% foreign ownership is allowed, so you do not need an Ecuadorian partner.
– The minimum number of shareholders is two (2) and they can be natural persons, legal entities or both.
– All legal entities in Ecuador need a President or Chairman and a General Manager or CEO. They have to be Ecuadorian or a foreigner with a valid visa.
– The President and the CEO can be the legal representatives, individually or combined.
– Limited liability and unlimited liability companies are the most common types of entities in Ecuador.
– Minimum capital: Limited liability USD$400, unlimited liability USD$800.
– All legal entities in Ecuador require a fiscal address.
– The currency in Ecuador is US$ Dollars.
What is the Process to Form a Company in Ecuador?
When forming a company in Ecuador, both limited liability and unlimited liability companies can be done either online or following the normal “manual” process. We recommend the online process because it is a lot easier, faster and the workload is transferred to the authorities.
Steps to Set-Up a Company in Ecuador
The shareholders will have to grant a power of attorney to their legal representative, granting him/her permission to set up a company in Ecuador on their behalf.
Legal Representation Ecuador
The legal representative, usually an attorney will start the setting up process. During this online process, the legal representative will reserve the company name and will fill out documentation with all the required information of the company; fiscal/legal address, president, general manager, and the shareholders, including their share in the company. This application will include the bylaws of the company, the corporate purpose and additional activities that the company will perform.
Once the application is submitted, the public notary will review and approve it. Then, the President, General Manager and the shareholders will have to sign the deed and the corresponding documents. Afterwards, the notary will send the deeds, documents and all the information to the Mercantile Registry, who will review, and if approved, will inscribe the company. At this stage of the process, the tax authority will grant the company its tax identification number (RUC).
At this point, the company is legally incorporated. Nevertheless, there are some other obligations that need to be met:
– Open a corporate bank account and deposit the company’s minimum capital.
– Create an account with the ‘Superintendencia de Compañías’.
– Register the company in the Social Security agency (IESS).
– Pay the municipal patent and get the licence of economic activities.
How we can help you
If you are considering forming a business or you need expert help with company registration in Ecuador, LegalGenius™ is ready to assist you with its skilled team of lawyers, consultants and tax experts. We are committed to making the process as stress-free and streamlined as possible for you, and we will take care of all your document preparation and administrative tasks regarding the registration forms, payment of government fees, local address registration, banking support, etc., whilst always keeping your exact objectives and unique vision in mind throughout the process.
Please use our Company Formation Wizard if you would like to set up your registered company in Ecuador or if you would like to know the costs involved prior to proceeding with our exceptional services. For other queries and special requests for complex or customised company formation services, please contact us at firstname.lastname@example.org