Ecuador- Tag Archives - Business News and Updates

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Explaining Developments in Digital Tax in Latin America

by Team Latin America | Jul 28, 2020

Economies in Latin America are changing rapidly. One important regulatory development for many countries in the region is digital tax, because it captures services delivered online or electronically. The OECD claims that Latin American economies are making real progress to address the tax challenges arising from the digitization of the economy. This international entity also expects that further digital tax developments in Latin America provides stability and certainty in the international tax system. Managing your company while keeping a careful watch over new regulations is one of the challenges to overcome while doing business in Latin America. We provide an explanation of digital tax developments in several emerging and developing economies in Latin America, so your business understands its obligations when offering digital services in these markets. Digital tax developments in Argentina Latin American countries are adapting to a new digital age with the establishment of digital services taxes across the region. The Argentine government levied taxes for digital services under law 27,430 and on a general basis. This regulation includes services carried out through the Internet network or any adaptation or applications, platforms or technology used by the Internet or other networks through which equivalent services are provided. By their nature, these services are basically automated and require minimal human intervention, regardless of the device used for its download, display or use. The regulation of digital services in Argentina has been in place since 27...

Why Seek Commercial Representation Services in Ecuador?

by Legal Team Ecuador | Jul 16, 2020

When expanding to Ecuador it is important to understand the local commercial and trade legislation. It is therefore crucial to seek commercial representation services in Ecuador. Businesses of various sizes see Latin America as an attractive continent to do business in, with huge opportunities for growth and expansion in many sectors such as tech, tourism, and mining. The key to penetrating emerging markets such as Ecuador is to have a competent strategic business plan. Utilize local knowledge and experience in order to give you and your business the best start in the country. What are commercial representation services in Ecuador? Commercial representation in Ecudaor will help your company to meet its business objectives. Taking advantage of commercial representation services in Ecuador will ensure that your company reaches its business objectives when entering the Ecuadorian market. Experienced commercial representatives can enable businesses to succeed in Ecuador, by: Understanding your business needs: This means understanding what market your company is aiming to break into and what are the business objectives and aims.Conducting market validation: In order to validate the market, a detailed analysis needs to be carried to see what factors can be implemented to achieve successful market penetration. Performing a route-to-market review: The commercial representative in Ecuador can help you and your company develop a tailored brand positioning strategy and identify a route-to-market.Conduct commercial engagement: A commercial representative in Ecuador can also support...

Manage Business Risks With Due Diligence in Ecuador

by Legal Team Ecuador | Jun 29, 2020

When doing business in Ecuador, managing your business risks with due diligence is essential to achieve success. Entrepreneurship in a new market entails facing different barriers. These include linguistic or cultural barriers, as well as lack of local market understanding or know-how. Buying existing companies or partnering with locals are key ways to mitigate these challenges and obtain support for navigating an unfamiliar market. However, it is essential to protect yourself in Ecuador by conducting exhaustive due diligence controls on the companies and people your business works with. This process minimizes the risk in a transaction by conducting detailed and independent analyses. Here we outline information about due diligence in Ecuador and how to manage your commercial risks. Due diligence to prevent money laundering in Ecuador The Financial and Economic Analysis Unit of Ecuador defines due diligence as developing a set of actions, in the most efficient and diligent way possible, to adequately know your clients. As a result, your company can know who, due to their activity or condition, is more likely to conduct money laundering, finance terrorism or be part of other crimes. As a new investor in the country, it is important to take into account the sector that you enter. The regulatory body of the sector is the one in charge of reviewing procedures for preventing money laundering locally. Why is it important to conduct due diligence in Ecuador? Due diligence in Ecuador lowers your risk of partnering with companies that have questionable backgrounds and...

Teleworking Regulations to Continue Business in Ecuador

by Legal Team Ecuador | Jun 27, 2020

Teleworking has become a reality for Ecuadorians during the Covid-19 outbreak. However, it is also part of the regulatory framework supervised by the Ministry of Labour of Ecuador, defining teleworking as "the provision of legal and personal services, in a dependent relationship, of a non-present nature, during ordinary or special working days, outside the facilities of the place where the worker works". We describe Ecuador's new teleworking regulations established by the government to continue doing business in the country. Teleworking in Ecuador Teleworking is one of the measures implented during Covid-19 outbreak. It is important to consider that, in a country like Ecuador, many people still live from the profits obtained from informal jobs such as street sales or stalls in the food market. For this reason, the reactivation of the economy is a priority for Ecuador's government. While ensuring the implementation of all precautionary measures to stop the spread of Coronavirus - including teleworking - the country began with the reactivation of its economy since mid-May. However, many people living in the urban areas of Ecuador are still working from home. Reactivation of labour activities in Ecuador Since June 2020, Quito, the capital of Ecuador and the city where all main national and international companies operate, took the next step in the reactivation of its economic activities as a city. The government authorized citizens to stay out of their homes until 9pm, allowing companies to resume their work activities. Likewise, the local government emphasizes the...

Opportunities for Fintech Business in Ecuador

by Legal Team Ecuador | Jun 10, 2020

With the growing adoption of mobile devices, computers and laptops over the last 20 years, the opportunities for Fintech businesses in Ecuador are increasing rapidly. This significant increase in technology comes hand in hand with the Fintech business in Ecuador. Even several primary sectors of economies have made a way to introduce some Fintech technologies into their business. Banking changes and, therefore, online financial services are becoming more important. The importance of Fintech is especially becoming popular in Latin America, where many opportunities lay for entrepreneurs. Gain insight about the opportunities for Fintech business in Ecuador. What is the nature of Fintech in Ecuador? Fintech offers many opportunities for companies, banks and their customers by bringing innovation and increasing competition to the traditional banking sector. Fintech, also known as Financial Technology, is a new technology that is looking for improvement. It constantly changes and automates the delivery and the way of using financial services. Fintech is utilized to help companies, entrepreneurs, and clients/consumers to control the financial action they handle. The financial operations are applied to specialized software that are utilized for applications on smartphones and computers. There are many different Fintech Trends that make up the Fintech sector: BlockchainInsurTech (Insurance)RegTech (Regulatory)LendTech (Lending)PayTech (Payments)Mobile PaymentsTradeTech (Trading)Stock-TradingWealthTech (Personal Finance)BankTech (Consumer Banking)Digital...

Changes to Accounting Obligations in Ecuador During COVID-19

by Accounting Team Ecuador | May 22, 2020

Learn how Ecuador has modified some of its accounting obligations for companies due to the current situation and economic uncertainty facing the country. Ecuador, like many other countries, has been affected economically, politically and socially by COVID-19. However, despite the current situation and existing restrictions, companies operating in the country have continued their commercial activities and must comply with the accounting obligations established by the government. The Ecuadorian government has taken a series of measures and issued important resolutions on accounting obligations in Ecuador in order to support entrepreneurs and prevent them from going bankrupt. President of Ecuador Lenin Moreno has announced economic measures focused on outlining the financial steps to sustain business and the economy during the pandemic. Economic measures in place During the last months, President of Ecuador Lenin Moreno has announced economic measures focused on outlining the financial steps to sustain business and the economy during the pandemic. These measures include: US$4 billion reduction in public spendingThe single tax on vehicles with an appraisal greater than US$20,000 must pay a contribution of 5% of the appraisal value.Creation of a fund for loaning to small and medium-sized companies at 5% interest, with a 3-month grace period and a 36-month term.Merge the Ministries of Telecommunications and Transport Additionally, Lenin Moreno announced that Ecuador received an international collaboration for around US$60 million as exclusive funds to face the needs that have...

What is a Corporate Compliance Officer for an NGO in Ecuador?

by Legal Team Ecuador | May 12, 2020

Owners of a Non-Governmental Organization (NGO) must appoint and register a Compliance Officer in Ecuador according to local corporate regulations. Non-Governmental Organizations in Ecuador, beyond having to comply with specific requirements for the operation of their activities locally, are also considered obligated subjects before the Financial and Economic Analysis Unit of Ecuador (Unidad de Análisis Financiero y Económico - UAFE). This regulatory body is the one in charge of identifying and regulating companies or organizations whose activities could become directly related to money laundering and/or crime financing in the country. For this reason, NGOs, like other entities, must comply with the process of registration and compliance with obligations, controls and reports to the UAFE. Part of this includes working with a Compliance Officer in Ecuador. What is a Compliance Officer in Ecuador? It is necessary to register a main Compliance Officer in Ecuador, plus an alternate. A Compliance Officer, according to the UAFE, is defined as a managerial level official responsible for complying with Ecuador’s regulations regarding the prevention of money laundering and financing of crimesexecuting the compliance program aimed at preventing the NGO from being used to carry out these illegal activitiesensuring the implementation of the procedures, controls and good practices necessary for the prevention of money laundering and the financing of crimes. Note that it is necessary to register a main Compliance Officer in Ecuador, plus an alternate. This applies whether the entity is...