Individual Background Check / Due Diligence in Ecuador

Who you partner with/do business with or who you hire are probably the most important pieces of the great puzzle that is doing business abroad. The need to have absolutely clear the people are involved with is of vital importance to the overall success of your business venture. The most effective way to have a clear understanding of the person/company you are involved with is through conducting a thorough background check. 

Incorporating a company and doing business in Ecuador can be complicated, tedious and bureaucratic, and if you add having a bad partner, CEO or employee, disaster will be inevitable. Fortunately, in Ecuador, you can find valuable information to conduct a good individual background check. These background checks can be performed by a local group who will be able to access detailed information on the persons you will be involved with – this can take the stress away from the unknown. 

Individual Background Checks in Ecuador

If you are considering the possibility of creating a new company in Ecuador, you will need either an Ecuadorian partner or CEO/General Manager. Referrals and ‘friends-of-friends’ are good options, however, experts and local lawyers/accountants are also viable possibilities.  

Ideally, you will have several meetings, reunions and visits with your potential partners before making a final decision. Of course, you will be able to get valuable information from these interactions, but the truth is that all the information provided may be biased. For this reason, meetings are often not sufficient to determine the reliability of a partner or CEO. 

Obtaining Relevant and Factually Correct Information 

A thorough individual background check in Ecuador will identify relevant information, including but not limited to: 

• Compliance with tax obligations. 
• Companies in which an individual is a shareholder.
• Companies in which an individual has been an administrator.
• Record of an individual’s legal proceedings.  
• Compliance of social security obligations.
• Confirmation of the academic record.

All this information is key to making an informed decision and can be obtained the at Internal Revenue Service or the Superintendence of Companies. You would not like to start a business relationship with an individual who has severe tax debts, is involved with numerous other businesses or has not met social security obligations. Additionally, most people would think twice before partnering with someone accused of fraud or money laundering. Imagine hiring someone who claims great experience in managing companies yet has never been a company’s administrator.

For these reasons, it is highly recommended to complete individual background checks in Ecuador. 

Employee Background Check in Ecuador

The same method applies when you are hiring an employee in Ecuador. Whether it is your next CEO or a regular employee, a proper background check can provide you with crucial information. Some valuable information you can obtain includes:

• Records of previous employment. 
• Experience in certain sectors or industries.
• Compliance with tax obligations.
• Confirmation of academic records. 
• Records of an individual’s legal proceedings (if they exist). 

Imagine hiring an accountant, lawyer, doctor, engineer with no degree, or someone without any relevant experience. Additionally, imagine your newest hire has a history of suing previous employers.

The best way to avoid these kinds of complications is to conduct a proper individual background check, obtained from an un-biased third party.

Do You Need to Perform an Individual Background Check in Ecuador?

Unfortunately, some Latin American nations have earned a reputation of not conducting business in the correct manner.  Numerous cases of fraud, misrepresentation or plain deceit have occurred for both local and foreigners doing business in the region. A comprehensive background check will give you valuable information required to successfully operate in Latin America. 

The professionals in our Ecuadorian team have the expertise, means and confidentiality needed to solve all your background check investigations needs. We can support you through the provision of tailored services ranging from company formation and due diligence to legal representation and accounting services. If you are interested in conducting a background investigation in Ecuador, please contact our team here to see how our team can support you and your business the region. 

Not sure of the company formation process in Ecuador? Watch the short video below and find out.