Do you want to become an entrepreneur in the Ecuadorian business world? This article will help guide you through the steps of incorporating a company in Ecuador so that you can get your business properly set up in the country.
Read below to learn more about starting a business in Ecuador.
Choosing the Right Legal Structure for Your Ecuadorian Business
The two types of legal structures that are most common to set up when people choose to do business in Ecuador are:
- Limited Liability Company – Select this structure if your company will have between 2 and 15 members and a limited number of shares that cannot be listed on the Stock Exchange.
- Anonymous Company – Choose this structure if you want your company to have unlimited members and an unlimited number of shares that can be listed on the Stock Exchange.
Most foreigners doing business in Ecuador choose to set up the first of the two options, which in Ecuador is known as the ‘Sociedad de responsabilidad limitada‘. Below is a step-by-step guide explaining the process of setting up a Sociedad de responsabilidad limitada in Ecuador.
How to Set up a Company in Ecuador
You must follow the 13 steps below to set up your Sociedad de responsabilidad limitada in Ecuador.
- Reserve a name – You must check if your company name has not been taken with the Superintendence of Companies.
- Prepare the Statutes – Find a lawyer who can validate a social contract for you.
- Open a “capital integration account” – Open a bank account with any bank in Ecuador.
- Elevate a public deed – Find a notary public and take the name reservation, the capital integration account certificate, and the minutes with the statues.
- Get an approved statute – Bring the public deed to the Superintendence of Companies for review.
- Get published in a newspaper – You can get your company published in a national newspaper with the Superintendence of Companies.
- Obtain municipal permits – You will have to pay the municipal patent and request a certificate of fulfilment of obligations.
- Register your company – You will have to go to the Mercantile Registry where your company was incorporated.
- Host a General Shareholders Meeting – The first meeting will serve to appoint the representatives of the company (president, manager, etc), as defined in the statues.
- Enable the documents – The Superintendence of Companies will give you the documents to open the RUC of the company.
- Enter the appointment of the representative – Send all the names of the administrators of the company to the Mercantile Registry.
- Get the RUC – The Unique Taxpayers Registry (RUC) is obtained in the Internal Revenue Service (SRI).
- Get the letter to the bank – Along with the RUC, the Superintendence of Companies will deliver a letter addressed to your bank account.
Once you have finished the 13 steps, you are open for business! You will be able to hire employees in Ecuador, manage, and grow the business.
Are you Ready to Form a Company in Ecuador?
By following these steps, you will be well on your way to commercially operating in Ecuador.
If you have any questions about how to create a company in Ecuador contact Ernesto here. Our Biz Latin Hub team have the knowledge and expertise to guide you throughout the company formation/incorporation process.
Watch this video to learn more about forming a company in Ecuador: