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How to Form a Company in Ecuador

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Doing Business in Ecuador - Provided is a detailed guide on the process for incorporating a company in Ecuador, including information on the types of companies in Ecuador, the duration to form a company in Ecuador, information about the initial capital requirements for a new legal entity in Ecuador and other key requirements for establishing a company in Ecuador. Furthermore, the steps on how to form the most common type of company in Ecuador and to open a corporate bank account are provided.

Proudly provided by the Biz Latin Hub Group - www.bizlatinhub.com - Latin America´s leading provider of Market Entry and Back Office Services in both English and Spanish

Published in: Business

How to Form a Company in Ecuador

  1. 1. 1 ECUADOR
  2. 2. Latin America's leading provider of Market Entry and Back Office Services How to Form a company in Ecuador 2 www.bizlatinhub.com
  3. 3. The Biz Latin Hub group was established in 2014 to assist both local and foreign companies doing business in Latin America, by providing a full suite of multilingual Market Entry and Back Office Services. The group is owned and managed by an experienced team of local and expat professionals, dedicated to assisting clients navigating their way through the complexities of the Latin American business environment. About Us www.bizlatinhub.com How to Form a Company in Ecuador 3
  4. 4. 10 Steps www.bizlatinhub.com How to Form a Company in Ecuador 4
  5. 5. 5 STEP 1 - Choose the type of legal structure for your business needs How to Form a Company in Ecuador There are number of different legal structures you can choose from when forming your company: - Limited Liability Company (public or private) - Unlimited Liability Company - Partnership (general or limited) - Joint Venture - Sole Proprietorship This presentation will outline the process of setting up a: The majority of companies that are set up in Ecuador are Limited Liability Companies (SRL). Limited Liability Company www.bizlatinhub.com *The appropriate one for you depends on your business needs
  6. 6. How to Form a Company in Ecuador • Yes Is Foreign Ownership Allowed? • Yes Can Company Sponsor Foreign Employees? • Zero Capital Controls • 4 weeks How Long Does It Take (Including Bank Account) • >USD $400 Minimum Capital • Yes, in order to obtain the RUC number Requires a fiscal address and legal representation? • US Dollars Currency • 2 Min number of Shareholders Key Considerations when Forming a Company in Ecuador www.bizlatinhub.com
  7. 7. STEP 2 - Power of Attorney www.bizlatinhub.com Get the ball rolling… The power of attorney will need to be drafted and signed in order to set up a Company in Ecuador. The aim is to provide the agent with all faculties needed to represent you or your foreign company in the country so that they can form the company in a lawful manner. How to Form a Company in Ecuador 7
  8. 8. STEP 3 - Registration of company name www.bizlatinhub.com You have to reserve the company name at the Superintendent of Companies online on: http://www.supercias.gob.ec/portalConstitucionE lectronica/ How to Form a Company in Ecuador 8
  9. 9. STEP 4 - Minutes of incorporation and BYLAWS -You have to register documents and prepare the minutes of incorporation which include the contract, articles of incorporations, company’s bylaws, and the formation of capital. -You need to find a lawyer that is able to constitute and sign the documents. -Remember! A public notary is necessary for notarizing the documents. How to Form a Company in Ecuador 9 www.bizlatinhub.com
  10. 10. STEP 5 - SUPERINTENDENCE of companies An important step… You must register at the Superintendence of Companies in order to obtain the company’s unique number and pay the annual registration fee. Documents required for this registration include: - Address of the company - Name of the legal representative - A certified copy of the public deed of the constitution of the company The information will be published online within 24 hours and then the company is registered. How to Form a Company in Ecuador 10 www.bizlatinhub.com
  11. 11. STEP 6 – company’s Legal existence Getting formal… • You have also to register the company’s objective, resolutions and the name of the legal representative in the Mercantile Registry Office. • This is necessary for conforming the legal existence of the company. The Registry Office will provide you a registration number “numero de codigo”. How to Form a Company in Ecuador 11 www.bizlatinhub.com
  12. 12. STEP 7 – OBTAIN FISCAL CODE Once you have completed these steps, you have to apply for the Fiscal Code (Registro Unico de Contribuyentes - RUC) at the Servicio de Rentas Internas. This takes 24 hours. How to Form a Company in Ecuador 12 www.bizlatinhub.com
  13. 13. Step 8 - social security Then, you have to sign up online for Social Security at the Ecuadorian Institute of Social Security and obtain a passbook to use the online platform. How to Form a Company in Ecuador 13 www.bizlatinhub.com
  14. 14. Step 9 - Municipal License You have to pay the commercial patent at the Mucipality of Quito and obtain the “tasa de habilitacion”. The commercial patent is a tax for a person or company that has a commercial or industrial activity and must be paid every year. As for the “tasa de habilitacion”, the fee depends on the type of company and the location as well as its size of facilities of its sector. How to Form a Company in Ecuador 14 www.bizlatinhub.com
  15. 15. We Can Help! 15 Biz Latin Hub is a market leader in helping local and foreign companies to successfully do business in Latin America For more information please contact David at Multi-lingual services that are: -Reliable - Economic - Tailored ecuador@bizlatinhub.com How to Form a Company in Ecuador
  16. 16. Mexico City – Mexico mexico@bizlatinhub.com Bogota – Colombia colombia@bizlatinhub.com Guayaquil – Ecuador ecuador@bizlatinhub.com Lima – Peru peru@bizlatinhub.com Contact Information Santiago – Chile chile@bizlatinhub.com Buenos Aires – Argentina argentina@bizlatinhub.com Panama City – Panama panama@bizlatinhub.com Belize City – Belize belize@bizlatinhub.com 16 São Paulo– Brazil brazil@bizlatinhub.com
  17. 17. Brazil Market Entry Support Accounting, Financial & Tax Services Legal and Immigration Services Due Diligence Services Recruitment Services Mexico Colombia Peru Chile ArgentinaPanama BelizeEcuador 17

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