Ecuador has begun opening up its economy to world markets, with clear messages, such as the signing of the Trade Agreement with the European Union, the intention to join the Pacific Alliance and the signing of bilateral investment treaties. Ecuador seems determined to attract foreign investment and this makes establishing an export company in Ecuador an attractive opportunity. With assistance from a local partner, the process is relatively straightforward.
Let’s get started.
How To Set-Up a Company/Legal Entity in Ecuador?
There are five types of companies that can be established in Ecuador. However, the most widely used companies are limited liability companies and public limited companies.
Currently, there are two ways to incorporate a company in Ecuador. In the traditional way, bylaws must be drafted, approved by the Superintendence of Companies and the Mercantile Registry, tax identification number obtained, bank account opened and Single License for Economic Activities paid in the municipality where the company is domiciled.
This process is slightly complex, takes more time (given greater levels of bureaucracy). However, it allows for a broader social purpose and adjusted to the specific activities of the company.
Our recommendation, however, is to incorporate your company online. In general, the requirements needed to establish a company online are filled through a form on superintendence of companies website. This form is filled by reserving a company name and providing information on the company shareholders. Once the notary and the Mercantile Registry have approved the deeds, they will be responsible for registering the company and the Internal Revenue Service (‘Servicio de Rentas Internas del Ecuador’ – IRS) will grant the company tax identification number (called a ‘RUC’).
Steps to Register as an Exporter Company in Ecuador
Once your company has been fully incorporated in Ecuador, you must then register the company as an exporter. See below the steps to register as an exporter in Ecuador:
- Ensure your companies activities identify exportation as a key business activity.
- Obtain the digital signature certificate or TOKEN, granted by the following entities:
Register as an exporter in Ecuapass, which is the Ecuadorian customs system that allows Foreign Trade Operators to carry out all their import and export customs operations:
- Update your information in the database
- Create user and password
- Accept use policies
- Register electronic signature
Additional Requirements: Type of Export Product
The above are the general requirements to register as an export company. However, it is possible that depending on the type of product to be exported, additional obligations must be fulfilled.
Want More Information on Exporting in Ecuador?
Ecuador is one of the most attractive Latin American Jurisdictions for exportation. To ensure your business plans are executed correctly, it is advisable to work with a local partner. Get in contact with Biz Latin Hub – our team of local experts can ensure that your business objectives are met through the provision of tailored business services. Contact Ernesto at [email protected] for more information.
Latin America has a lot to offer; transparent markets, attractive incentives for companies to invest, an abundance of natural resources and a large and educated population. Discover about all the opportunities for mining service companies in Latin America. Watch the following video to learn more about mining opportunities!