There are many reasons which would make you want to open a company in Ecuador. Nevertheless, it’s easier said than done… We are going to look at different types of visa needs and the different types of companies you can form in Ecuador so that you can start your business in the Andean nation.
In order to set a company up in Ecuador, you will need to have a capital of at least USD $400 and have a visa for the country – with these two ingredients you will be able to do business freely. You should also be aware of the tax requirements in Ecuador, as these can have a direct influence on the outcome of your investment.
What are the Different Types of Visas in Ecuador?
- The Long Duration visa (Larga duración):
This visa is for the non-immigrants who are looking to work in Ecuador.
- The indefinite visa (Tiempo Indeterminado):
This is the visa for immigrants and long-term investors.
- Visa 9 III (Visa Inversionista):
This is a special kind of visa destined to foreign investors in Ecuador. The investment will have to be of no less than USD$ 25.000 with an increase of USD$ 500 for any additional dependent. This will be the case for investors in the industry, commerce, and real estate. If you’re investing in agriculture, livestock or you’re exporting merchandise, the minimum investment required is USD$ 30.000.
- Temporary Residency Visa (Residencia Temporal):
The temporary residency visa is granted to foreigners who originate from countries which take part in the MERCOSUR organization, which are Argentina, Brazil, Paraguay, Uruguay and hopefully Bolivia soon. If you are Venezuelan, the terms are unclear at this moment as their membership has been temporarily suspended.
- Permanent Residency Visa (Residencia Permanente):
As its name suggests, this visa is for foreigners who have decided to settle down permanently in Ecuador.
Once you have the correct visa, it’s time for you to choose what type of company you want to set up in the country. In Ecuador, there are 5 categories of companies.
What are the Different Types of Companies in Ecuador?
In order for you to incorporate a company in Ecuador, you need to know about the different types of legal structures in the country. We will go over these for you so that you can see which type of legal entity best suits your business needs in Ecuador.
1. Collective Company (Compañía en Nombre Colectivo):
This is a company formed by two or more members. You won’t need any subscription capital as this type of company is not under the control of the Superintendence of Companies.
2. Company with Limited Partnership and Shareholders (Compañía en Comandita Simple y Dividida por Acciones):
This type of company is composed of various partners and investors. There isn’t a minimum amount of capital necessary for this category because it is not under the Superintendence of Companies’ supervision.
3. Limited Liability Company (Compañía de Responsabilidad Limitada):
The limited liability company has to composed of a minimum of two members and can have a maximum of 15 members.
4. Anonymous Company (Compañía Anónima):
This company can vary in size as it can be formed of two or more members. This is the most common type of company in Ecuador.
5. Mixed Company (Compañía de Economía Mixta):
This is for companies which are formed by a public/private partnership. Now that you’re aware of the different types of companies available to you in Ecuador, you can get started with setting up your business!
How Do I Start a Business in Ecuador?
Starting a business in Ecuador is as challenging as setting up a business in any other country. We recommend you consult a proxy company offering back-office services in Ecuador, for you to be able to focus fully on the establishment of your company.
Biz Latin Hub has an office in Ecuador formed of legal and accounting experts. They can assist you to establish your company, offering a full suite of services such as work visas, office space, legal support, accounting services in Ecuador and more. This will enable you to focus on the heart of your business, for you not to waste precious time of paperwork and formalities.
If you want to know more about how we can support your business in LATAM, don’t hesitate to contact our CEO Craig here.
If you are interested in learning how to form a company in Ecuador, take a look at this video!