If you are doing business in the Ecuadorian market and looking to streamline your core operations, there are a number of good options available when it comes to outsourcing back office services in Ecuador.
The back office of a business is essentially any part that is not client or customer facing, so outsourcing back office services in Ecuador or anywhere else can involve handing over a wide range of administrative and other support services.
They can include general, periodic, or specialized accounting or legal work, among a wide range of possible options. Should you have one area in mind when it comes to seeking support for your business, you may find that a provider who specializes in that discipline can meet your needs.
However, in the event you wish to outsource a broader range of functions, your best option may be to seek out a dedicated back office services provider who can cover all of your needs under one services agreement.
Not only can that be more cost-efficient than dealing with multiple providers, but it will also be considerably more convenient liaising with one provider – who will also be able to adapt your services agreement, adding or removing services from the agreement as needed over time.
If you are looking for a local partner to assist you with market entry or ongoing operations in Ecuador, contact us today to find out more about how we can help.
Ecuador attracting attention among investors
Ecuador has enjoyed consistent growth in recent decades, only witnessing GDP declines during two years between 2000 and 2020, with one of those being the final year of that period, owing to the COVID-19 pandemic.
In 2021, the country elected business-friendly President Guillermo Lasso, who has been moving to cut taxes and red tape associated with doing business in the country.
He has also sought to push Ecuador in a more outward-facing and trade-friendly direction, with his administration making a formal application to become a member of the Pacific Alliance – a decade-old economic association that includes four of the six largest economies in Latin America in Chile, Colombia, Mexico, and Peru.
Already, Ecuador is a member of the Andean Community of Nations (CAN), a more than fifty-year old integration initiative that also includes Bolivia, Colombia, and Peru, and which has made a series of moves to deepen integration in recent years, offering a number of benefits to businesses.
Ecuador enjoys an outsized trade profile considering it is one of the smallest countries in South America, thanks in large part to the presence of the port of Guayaquil, one of the busiest in the region, which provides easy access to the Asia-Pacific region.
The country also has some of the best-priced real estate in the region and a relatively friendly immigration regime, leading to it recently being named as one of the top six nations in the world to retire to.
Beyond all of those factors, another major draw for US investors or those that do significant business in US dollars is the fact that Ecuador is one of Latin America’s dollarized economies.
If you are planning to do business in the country or already active here, you may want to consider outsourcing the following back office services in Ecuador.
4 back office services in Ecuador to outsource
1. Company formation
If you are still planning your market entry, one service to strongly consider outsourcing is company formation in Ecuador. Because, while the Ecuadorian government is encouraging of foreign investment, entering a new market and dealing with an unfamiliar regulatory regime can still be difficult.
By partnering up with someone to guide you through the process, you will tap into a wealth of knowledge and experience, guaranteeing that you can establish your business in the shortest time possible, while remaining in full compliance with all applicable regulations.
2. Due diligence
Should you seek to enter the Ecuadorian market via a merger or acquisition, or if you prefer to get some insight into a potential local partner, hiring a well-established local provider to do the due diligence you need is a good option.
Because that provider’s experience will be invaluable when it comes to doing the most thorough checks possible, in turn eliminating as much risk as possible before you make the commitment of a large financial outlay or sign any kind of deal to do business with another company.
3. Legal services
Company formation is essentially a legal process, for which you will call on the assistance of legal services professionals. An extension of that support they will provide you with is ongoing legal services.
When you outsource corporate legal services, you hand over some complicated and time consuming processes that are not only navigated with more efficiency by experienced professionals, but also with a better guarantee that everything will be done in full compliance with local regulations, meaning you will avoid any legal inconveniences.
4. Accounting & taxation
Another time consuming element of doing business which presents a range of compliance issues is accounting and taxation, so it can be a wise choice to seek support with this critical aspect of your business, whether for the heavy work involved in annual tax declarations or for ongoing accounting matters.
Should you be doing business in other markets, you may want to seek out a provider that has a presence in those jurisdictions, too. Because such a firm will also be able to offer advice and support related to effectively managing your cross-border tax burden.
Biz Latin Hub provides back office services in Ecuador
At Biz Latin Hub, we provide integrated market entry and back office services throughout Latin America and the Caribbean, with offices in 17 key cities around the region, including Ecuador’s capital city Quito.
Our portfolio includes company formation, due diligence, legal services, and accounting & taxation, among others, and our unrivaled regional presence means we are ideally suited to support multi-jurisdiction market entries and cross-border operations.
Contact us today to find out more about how we can assist you.