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Company formation in Ecuador
Comprehensive assistance in company formation, including banking services
How to form a company in Ecuador
1
Document submission
You submit to us necessary documents of the future founders and directors for the purposes of company formation in Ecuador and opening a bank account in Ecuador
2
Payment of services
Payment of our services for company formation in Ecuador and/or bank account assistance in Ecuador
3
Company formation
We register a new company in Ecuador for you. Upon completion of the registraion corporate documents are either delivered to you or submitted to a bank for the subsequent opening of a bank account
4
Bank account opening
In case you request an assistance with a bank account, we arrange an interview at the bank for you, inform you about the date of the visit and accompany you on your way to the bank. After the bank account is opened and active you receive corporate documents of the formed company as well as the access to the bank account
Key aspects to consider prior to incorporating a company in Ecuador
You can incorporate a limited liability company in Ecuador and open a corporate bank account remotely.
1. Founders that would like to register a company in Ecuador can either be resident or non-resident in Ecuador. Founders can be either individuals or legal entities.
2. A resident or a non-resident individual can be a company director in Ecuador. It is not required to register a company in Ecuador with a resident individual as one of its shareholders or directors. However, it is required to register a company in Ecuador with a resident legal representative.
3. One individual can register a company in Ecuador and simultaneously be a shareholder and a director in this company if such company is registered as a Cía. Ltda. (a limited liability company).
4. There is no requirement for creating substance in Ecuador - no need to hire local employees or rent an office in order to register a company in Ecuador or to conduct business in Ecuador.
5. Minimum share capital that is required to register a company in Ecuador as a Cía. Ltda. (a limited liability company) is USD 400.
6. Information about company founders, shareholders and directors after company registration in Ecuador is complete is publicly available in the state corporate register.
7. We can help you register a company in Ecuador, as well as open a corporate bank account remotely, on the basis of a power of attorney.
2. A resident or a non-resident individual can be a company director in Ecuador. It is not required to register a company in Ecuador with a resident individual as one of its shareholders or directors. However, it is required to register a company in Ecuador with a resident legal representative.
3. One individual can register a company in Ecuador and simultaneously be a shareholder and a director in this company if such company is registered as a Cía. Ltda. (a limited liability company).
4. There is no requirement for creating substance in Ecuador - no need to hire local employees or rent an office in order to register a company in Ecuador or to conduct business in Ecuador.
5. Minimum share capital that is required to register a company in Ecuador as a Cía. Ltda. (a limited liability company) is USD 400.
6. Information about company founders, shareholders and directors after company registration in Ecuador is complete is publicly available in the state corporate register.
7. We can help you register a company in Ecuador, as well as open a corporate bank account remotely, on the basis of a power of attorney.
Cost of services
Formation of a Cía. Ltda.
Timeframe - 20 business days
Timeframe - 20 business days
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Advantages of incorporating a company in Ecuador
Attractive business-environment
- Multiple active free trade agreements: Associate Member of Mercosur, CAN, EFTA
- Location of Ecuador allows to establish maritime trade with North, Central and South American states, as well as with Asian and Pacific states
- Vast natural resources
- Foreign investment promotion
- Well-developed infrastructure
- Low inflation rate
Stability and security
- Political stability
- Secure legal and justice systems
- Comprehensive protection of property rights
- Comprehensive personal security
- Investment protection
Tax benefits
- Multiple free trade zones
- Multiple double tax treaties
No foreign exchange controls
- Ecuador state regulations do not impose foreign exchange controls. Individuals and business entities, either resident or non-resident in Ecuador may open bank accounts in local banks in any currency
Ease of establishing and doing business
- Minimum share capital that is required to register a company in Ecuador as a Cía. Ltda. (a limited liability company) is USD 400
- Remote company formation and remote banking assistance in Ecuador is available for any foreign individuals
- 100% foreign ownership of a company in Ecuador is available
More about Ecuador
Republic of Ecuador is located in the northwestern part of South America. Ecuador has a territory of 256,370 square kilometers. Ecuador borders Colombia and Peru and has access to the Pacific Ocean. The capital city of Ecuador is Quito, the location of key government institutions.
Population of Ecuador amounts to around 17,72 million people.
Population of Ecuador amounts to around 17,72 million people.
Official currency of Ecuador is the United States Dollar (USD).
Ecuador is a developing economy which is significantly dependent on commodities - petroleum, agricultural and aquacultural products. Oil makes up 40% of country's exports. Ecuador is the world's largest exporter of bananas and a major exporter of shrimp. Due to shifts in global markets and development of technology, Ecuador had economic development in textile production, processed food, metallurgy and service sector.
In terms of foreign trade, the largest goods contributing to the country's export are oil, petroleum, gold, copper, bananas, sugarcane, palm oil, maize, rice, potatoes, cocoa, pineapples, oranges, shrimp, tobacco, cigars, flowers, cut flowers, wood, precious metals.
Imports of Ecuador consist of electrical machinery and equipment, cars and vehicles, electric conductors, consumer goods, medicaments.
Primary trading partners of Ecuador are Chile, Colombia, Brazil, Peru, Panama, Mexico, the USA, China, South Korea, Spain, Netherlands, Germany, Italy.
The GDP of Ecuador grew by 4.2% in 2021 and amounted to USD 106.16 billion. Tertiary sector makes up 53.5% of the GDP of the country, followed by industry sector at 31.2% and agriculture at 9.5%.
Ecuador is a developing economy which is significantly dependent on commodities - petroleum, agricultural and aquacultural products. Oil makes up 40% of country's exports. Ecuador is the world's largest exporter of bananas and a major exporter of shrimp. Due to shifts in global markets and development of technology, Ecuador had economic development in textile production, processed food, metallurgy and service sector.
In terms of foreign trade, the largest goods contributing to the country's export are oil, petroleum, gold, copper, bananas, sugarcane, palm oil, maize, rice, potatoes, cocoa, pineapples, oranges, shrimp, tobacco, cigars, flowers, cut flowers, wood, precious metals.
Imports of Ecuador consist of electrical machinery and equipment, cars and vehicles, electric conductors, consumer goods, medicaments.
Primary trading partners of Ecuador are Chile, Colombia, Brazil, Peru, Panama, Mexico, the USA, China, South Korea, Spain, Netherlands, Germany, Italy.
The GDP of Ecuador grew by 4.2% in 2021 and amounted to USD 106.16 billion. Tertiary sector makes up 53.5% of the GDP of the country, followed by industry sector at 31.2% and agriculture at 9.5%.
International business expands to Ecuador and incorporates a company in Ecuador primarily for:
Restricted for foreign entrepreneurs are the following sectors:
- mining
- manufacturing sector
- agriculture
- telecommunications
- utility industry
- plastics machinery
- tourism
- automotive parts and accessories
- real estate.
Restricted for foreign entrepreneurs are the following sectors:
- national defense
- television
- radio
- air transport
- operational activity of airports and seaports
- postal services.
- Corporate income tax - 25%. Tax returns are filed on an annual basis. Advance income tax payments are made twice a year
- Dividend withholding tax - Standard tax rate 10%
- Interest withholding tax - 25%
- Royalties withholding tax - 25%
- Capital gains tax - 0% and 10%
- VAT - Standard tax rate 12% or reduced rates from 0% up to 8% or tax exempt. Tax returns are filed on a monthly basis
- Personal income tax - from 0% up to 35%.
Apart from such traditional business entity types as a limited liability company (Compañía de Responsabilidad Limitada - Cía. Ltda.) and a public limited company (Compañía Anónima), corporate law in Ecuador offers to incorporate a company in Ecuador as:
1. General partnership (Compañía en Nombre Colectivo)
2. Limited partnership (Compañía en Comandita Simple)
3. Partnership limited by shares (Compañía en Comandita Dividida por Acciones)
4. Mixed economy company (Compañía de Economía Mixta)
5. Branch of a foreign company (Sucursal)
To receive a detailed description of the company formation procedure in Ecuador and information about documents necessary for company formation in Ecuador please contact our experts.
1. General partnership (Compañía en Nombre Colectivo)
2. Limited partnership (Compañía en Comandita Simple)
3. Partnership limited by shares (Compañía en Comandita Dividida por Acciones)
4. Mixed economy company (Compañía de Economía Mixta)
5. Branch of a foreign company (Sucursal)
To receive a detailed description of the company formation procedure in Ecuador and information about documents necessary for company formation in Ecuador please contact our experts.
Send a request for company formation in Ecuador
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London, EC1V 2NX
Phone: +44 20 8157 4037
Email: request@pil-services.com
