Specificity of the registering
Issues while setting up a corporation/company in Ecuador include that you need 2 shareholders to form a company. These two persons could be legal entities, natural persons, or both. 100 percent foreign ownership is permitted in Ecuador. So, you don’t need an Ecuadorian partner.
All entities need a chairman or president and a CEO or general manager. They should be foreigners with a valid visa or Ecuadorians. The CEO and the president could be legal representatives, combined or individually.The common types of business entities in Ecuador are unlimited liability and limited liability companies. Minimum amount of capital required – 800 US dollars for an unlimited liability company and 400 US dollars for a limited liability company.
All entities should have a fiscal address.US dollar is the currency in circulation in Ecuador.
Formation process
The company gets legally incorporated now. However, certain other formalities have to be met:
Make an account at the Superintendencia de Compantildeiacuteas;
Register your company in SSA (Social Security Agency);
Pay for the municipal patent and obtain the license for economic activities.
Legal system
You can form a company in Ecuador (unlimited liability or limited liability company) either online or through the normal manual procedure. The online procedure is highly recommended as it’s a lot faster, easier. Plus, the bulk of the workload rests on the shoulders of the authorities. Shareholders are required to confer the power of attorney to the legal representative, allowing him to form and set up a company in the region on their behalf.
A reliable attorney is usually the representative of the shareholders who begins the setup procedure. At this point, the representative will book a name for the company. Additionally, he’ll document all information regarding the company, including the details related to legal/fiscal address, general manager, president, as well as the shareholders along with their shares in the organization. The application will carry the company’s bylaws, the purpose, and other activities the business will perform in due course of time.
When you sent the application, it’ll be reviewed and approved by the public notary. Subsequently, the general manager, president as well as the shareholders will sign the business deed and related documents. Later, the notary will submit the documents, the deed, and other papers to the Mercantile Registry. If all is well, the Mercantile Registry will give a green signal and inscribe your company. By this time, the company will get a tax identity from the tax authorities.
If all these chores sound too much, get in touch with our business experts in Ecuador. They’ve a business formation presentation that should help out. In case you’ve additional questions on forming a company in Ecuador, just give us a call and we’ll tender the much-needed help.