When incorporating, you must look at the law in the country, in Ecuador is civil law law. You will want to get some local advice as to how to best structure a company in Ecuador. Electronic signatures are permitted.
The letters EC is for Ecuador and the most common company type structure in Ecuador is a Compañía Limitada.
The average time to incorporate is 56 dAys to put together the paperwork and file a Compañía Limitada in EC. The types of currencies you can use to fund your business is often any legal tender.
To "re-dom" a company is not common, and there are no re-domiciliation laws. One is typically not permitted to change the jurisdiction.
There must be at least This means it is not possible for you to own a Compañía Limitada in Ecuador as a sole shareholder. You must have other shareholders, they can be nominees or de facto shareholders. Corporate Shareholders are encouraged, which means you can have a corporate shareholder. Foreign ownership is encouraged, up to 100% of the total equity of the company.
There is a requirement to have at least 2 directors. Additionally, corporate directors are permitted. Directors can have some expectation of privacy, as they are not disclosed publicly. There is a requirement to have annual meetings of shareholders.
A registered agent is normally required, which means the company will have to pay a fee on a yearly basis, for a legal services company which can receive litigation or other legal process on behalf of the registered legal entity. Furthermore, a corporate secretary is not always necessary, at least not by law.
There is a legal obligation to file accounts on a yearly basis. Furthermore, there is oftentimes a requirement to have these accounts audited.
Thin capitalization rules are in effect. A company is thinly capitalised when there is a greater proportion of debt than equity. The minimum capitalization for a Ecuador Civil Law is 200.
A corporate director is permitted, meaning this country is a good option if you are setting up a structure where you want to protect director liability.
The directors are not disclosed in the public registry of Ecuador, Superintendencia de Companias. Shareholders are disclosed in the Superintendencia de Companias.
Typically companies take 56 days to setup and there are 2 director(s) required and 2 shareholder(s) required at the time of incorporation.
Overall we think Ecuador is a ok option and have given it a score of 62 as an IO score, using the Incorporations.IO proprietary formula.
56 dAysto form