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Company Formation Ecuador


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Ecuador has been on the rise as a growing Latin American economy. Its liberal investment regulations, business friendly environment, and equal treatment to foreigners and citizens are some of the reasons for the success the Ecuadorian market is experiencing. Although it is enticing, it can be difficult to do business in a country where one does not fully understand the regulations and laws to form a company there. In order to help you get a better insight on the steps in this process, our Ecuadorian business experts have created a company formation presentation for Ecuador.

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Company Formation Ecuador

  1. 1. How to Form a Company in Ecuador?
  2. 2. Why Incorporate a Company in Ecuador? Diverse range of attractive business sectors Equal treatment of foreign investors Heavy government investment in infrastructure Multiple Free Trade Agreements Low inflation rate
  3. 3. Types of Legal Entities Unlimited Liability Company Limited Liability Company Mixed-Capital Company Limited Partnership The majority of companies that are set up in Ecuador are Limited Liability Companies (Compañía de Responsabilidad Limitada). This presentation will outline the process of forming a Limited Liability Company.
  4. 4. Fact Sheet Yes Is foreign ownership allowed? Yes Can the company sponsor foreign employees? Yes - 5% capital exit tax Are there capital controls? 4 - 6 weeks once all documentation is received How long does it take? (including bank account) Yes – approx. USD$400 Is there a minimum share capital? Yes Are a fiscal address and legal representation required? 2 What is the minimum number of shareholders?
  5. 5. How to do it. In order to successfully form your company, you will have to follow the steps outlined in this presentation. There are 6 main steps involved in this process.
  6. 6. Step 1 Companies can have one social objective and up to five additional economic activities. Choose a Social Objective
  7. 7. Step 2 Companies have to reserve their name using the Company Superintendent webpage. Reserve the Company Name
  8. 8. Step 3 ´5 Complete the business registration using the online platform. The company shareholders and legal representatives will have to sign the company deed before the Notary. Register Using the Online Formation Platform
  9. 9. Step 4 After the successful online registration, the authorities will issue the company tax ID number (RUC) and the company will have to register before the Mercantile Registry. Obtain the Company and Tax ID Number
  10. 10. Step 5 You will have to open a corporate bank account and deposit the required capital to activate it. Open and Activate a Corporate Bank Account
  11. 11. Step 6 Register the company’s office address and obtain the municipal patent. Obtain the Municipal Patent
  12. 12. Biz Latin Hub is a market leader in helping individuals and companies to successfully do business globally and has multilingual services that are reliable, tailored and responsive. Our group is owned and managed by an experienced team of local and expat professionals, dedicated to assisting our clients to navigate their way through the complexities of the global business environment. We can help!
  13. 13. See how our services can support your global expansion. Legal Services Accounting & Taxation Immigration
  14. 14. Are you ready to expand globally? Contact us now.