Anyone planning on entering the Ecuadorian market, or who is already doing business there, will need to find a good legal firm to help them negotiate all aspects of corporate law in Ecuador.
Newcomers to the market who do not speak Spanish will ideally find a corporate legal firm in Ecuador with experience in supporting foriegn investors and lawyers able to work effectively in English, or any other language they are comfortable communicating in.
A good business attorney will be able to offer valuable insight, such as which to choose among the different types of legal structures in Ecuador, and assist with other key decisions.
Ecuador has seen some of the most consistent growth in Latin America since the turn of the century, with GDP only declining during two years between 2000 and 2020, including the last year of that period, owing to the effects of the global pandemic.
For investors, the 2021 election of business-friendly President Guillermo Lasso also provided more reason to look to the South American country, with Lasso promising to work hard to encourage investment, in part by eliminating red tape.
While Ecuador is one of the smallest countries in the region, it enjoys outside sway in terms of trade, in part thanks to Guayaquil, its most populous city, whose port has one of the highest levels of container throughput in the region.
It also benefits from its location, nestled between two of the most popular investment destinations in Latin America, in Colombia and Peru.
Trade with its neighbors is bolstered by the membership of the three countries in the Andean Community of Nations (CAN), along with Bolivia, which has implemented a series of measures to deepen integration in recent years.
In a sign of the Lasso administration’s outward looking approach and commitment to business and trade, Ecuador also recently made a formal application to join the Pacific Alliance – an economic association that includes Chile, Colombia, Mexico, and Peru, and to which Singapore was accepted as an associate member in the latter part of 2021.
Singapore’s acceptance appears to be the first step towards a long-anticipated expansion of the Pacific Alliance into the Asia-Pacific region, with Australia, Canada, New Zealand, and South Korea mentioned as potential future associate members.
Given Ecuador’s location on the northwest coast of South America, providing Guayaquil with easy access to Asia-Pacific, membership to the Alliance could prove extremely beneficial.
For US investors, or those who hold assets in US dollars, another attraction of doing business in Ecuador is the fact it is one of Latin America’s dollarized economies.
The country also boasts affordable property and has a relatively uncomplicated immigration process, helping it to be named as one of the top six nations in the world to retire to.
If you are planning on launching a business in the country or already active there and in need of a legal firm in Ecuador to provide support with corporate law, contact us today to find out how we can help you.
What your legal firm in Ecuador will do
One of the most significant hurdles encountered when entering a new market is understanding and complying with local regulations, and that challenge is amplified when there is a language barrier to overcome.
While most professionals in Latin America will have a grasp of English, you will still want to make sure that you choose a corporate legal firm in Ecuador that can provide you with a lawyer whose language skills are strong enough for effective communication on the most technical matters.
Beyond that, they will also need to have a firm enough understanding of specific aspects of corporate law in Ecuador related to your needs, including the common pitfalls encountered by foreign investors.
Beyond that, your legal firm in Ecuador will be able to help protect your intellectual property, undertaking a comprehensive study of all relevant databases and registering trademarks and products in the shortest possible time, to help you establish and protect your competitiveness in the market.
All of that comes on top of them representing your business on any matters related to corporate law in Ecuador, be that in front of local authorities, or while dealing with partners, associates, and other stakeholders, so that you can avoid any legal inconveniences during launch and the ongoing administration of your business.
Corporate law in Ecuador: choose the right partner
When choosing the right legal firm to provide support with corporate law in Ecuador, you will want to consider the following:
Specialist knowledge: depending on the nature of your investment, you may need to seek out a legal firm in Ecuador with specialists in the area of law most relevant to your investment. Examples include import/export, agriculture, and the oil industry, which all have their own sets of regulations that your provider may need to understand.
Client satisfaction: Choosing a legal firm in Ecuador with a good reputation and track record is important, and one way to hedge your bets in that regard is to check comments posted online, which should give a good indication of what to expect from a provider.
Long-distance management: If you won’t be relocating to Ecuador, you will want to make sure that you will be able to effectively communicate and manage your interests from afar, so ascertaining how comfortable your provider is with the likes of online management and communication platforms will be worthwhile.
Local connections: Beyond helping you navigate corporate law in Ecuador, an established legal firm will ideally have significant local connections, which could be of use to you when you enter the market or during ongoing operations. When considering potential partners, it could be worthwhile discussing what sort of contacts they will bring to the table.
Biz Latin Hub can act as your corporate legal firm 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 major cities throughout the region, including in Ecuadorian capital city Quito.
Our portfolio of services includes company formation, accounting & taxation, corporate legal services, due diligence, and recruitment assistance, and our unrivaled regional presence means we are ideal partners to support multi-jurisdiction market entries and cross-border operations.
Contact us today to find out more about how we can assist you.
If you found this article on corporate law and finding a good legal firm in Ecuador of interest, check out the rest of our coverage of this South American country. Or read about our team and expert authors.