Some of the Necessary Legal Formalities Required for Company Registration in Ecuador
Are you an investor with the intention of investing in Ecuador? If so, the right information on company registration in Ecuador is now available at your disposal. If you’re a foreigner, you can now have 100 percent ownership without partnering with an Ecuadorian resident. But before you think of registering your company, you must first think of the type of legal entity you want to set. Some of the common legal entities in Ecuador include:
- Corporations (Stock Companies)
- Limited Liability
You must identify the type of business you want. Then you should draft a document to accord the power to an attorney to assist you. Before getting your business registered, you must have several proposals about the business names. Then, visit the Superintendence of companies to get your business names run through the search where the appropriate name will be reserved. Note that the name reservation is only valid for 30 days.
Company Registration in Ecuador Leads to Company Formation
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When it comes to company registration in Ecuador, ensure you notarized your documents with the public notary. What you need to do is get incorporation deed ready. It explains the contract, Memorandum and Articles of Association, the Constitution and the establishment of capital ready. Then, the Superintendence of companies will approve the deed of incorporation with the Commercial Registry. In the event that public inscription creates a company, an abstract of the incorporation deed should advertise in a local Ecuadorian daily.
For a Limited Liability company, you’ll be required to have a minimum of two (2) directors and two (2) shareholders (may be of any nationality). Then, the minimum paid-up capital is US$400 and US$800 for unlimited liability. Again, your company needs to have an Executive and a President who can be a foreigner (valid visa) or an Ecuadorian resident.
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Should you decide on company registration in Ecuador, then you must ensure that you register for a physical address and an office.
The moment the Registry of companies validates the application, you then must apply for fiscal code with the Registro Unico de Contribuyentes (RUC) at the SRI. The process will only take 24 hours to be part of the taxpayers. The law requires you to submit annual returns with the Internal Revenue Services (SRI). Similarly, it’s part of the requirements to open a bank account at any bank of your choice. It is where you’ll be conducting your financial transactions.