Company Formation Ecuador
Updated on Thursday 26th April 2018
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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. Our company formation specialists can assist you in the process, so please contact us for more information.
Legal structures in Ecuador
There are more than one option when wishing to set up a company on Ecuadorian ground. A foreign entrepreneur can opt either for a limited liability company (public or private), an unlimited liability company, a partnership (general or limited), a joint venture or a sole proprietorship. However, the majority prefers the limited liability company and here are some requirements for establishing a company of this sort:
- minimum two directors;
- at least two shareholders (they can be of any nationality and do not have to be Ecuadorian residents);
- a share capital of 800$;
- it can be 100% foreign-owned;
- a registered office in Ecuador.
Steps for registering a company in Ecuador
1. If you want to open a company in Ecuador, you first have to reserve the company's name; the certificate of reservation is valid for 30 days.
2. Then a notary is necessary for the registration documents and for the bylaws. You can consult our team of company formation experts for further information and assistance.
3. The next step of the company registration in Ecuador is to register with the Superintendence of Companies in order to obtain the company's number and to pay the annual registration levy. You will need to submit some papers, such as the address of the company or the name of the legal representative you have chosen.
4. When setting up a company in Ecuador, you also need to publish the incorporation of the new company in a local mass-circulation newspaper.
5. Another thing you need to do in order to form a company in Ecuador is to sign up for Social Security at the Ecuadorian Institute of Social Security and get a password to be able to navigate the system. This is also a step our specialists in company formation matters can help you with
6. Contracts of the company's employees must be inscribed with the Ministry of Labour. Then you must obtain the operations authorization from the municipality.
7. Last step is to pay for the commercial certificate at the Municipality of Quito.
The process of company registration in Ecuador can take up to four weeks to be completed, but our team can take care of these procedures. We are available at any time to offer consultation to foreign entrepreneurs who want to invest in Ecuador or in other parts of the world. Please seek counsel from us for more details or for a personalized offer.