The Setup Framework on Company Incorporate in Ecuador by the Company’s Act
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Types of Business Entities in Ecuador
Ecuador has several types of business entities to choose from with the most common ones being Limited Liability Company, Branch and Corporations. Identifying the type of business structure marks the beginning of the company incorporate in Ecuador. Now, once you’ve selected a legal business entity, you must, therefore, accord the rights to an appointed representative who’ll conduct the registration through a drafted Power of Attorney.
Legal Business Name
It follows that every business must have a legal name before proceeding with the registration. And, therefore, you must ensure that you’ve selected/drafted a few proposal names that are unique and simple. Then the next step is visiting the Superintendence of Companies to get your business names run through the search before settling on one name. The name reservation shall last for a period not exceeding 30 days, which is the legal period of its validity.
Preparing your statutory documents is the next essential process that follows when it comes to company incorporate in Ecuador. But first, you must ensure that the documents are notarized at the public notary. Some of the crucial documents required are the incorporation deed, the Memorandum and Articles of Association, the Constitution and the stipulated capital in order.
The Superintendence of companies approves the deed of incorporation under the supervision of the Commercial Registry whereby a publication and an abstract of the incorporation deed is made at the local dailies.
Limited Liability Company Requirements
Should you decide to incorporate a Limited Liability Company you must meet some of the following requirements:
- A minimum of two directors and two shareholders (can be from any nationality)
- A minimum share capital of US$400
- At least one Executive manager and a Founder/President, both of whom can either be foreigners (possess valid visa) or Ecuadorian residents.
To be able to receive notices and correspondences from the government agencies you must have a registered address.
Company incorporate in Ecuador cannot be complete without registering as a taxpayer. And, therefore, as part of post-registration processes, you must apply for a fiscal code with the Registro Unico de Contribuyentes (RUC) at the Internal Revenue Services (SRI). In the event you deem that the process is time-consuming, you’re at liberty to consult 3E Accounting Indonesia for any tax-related matters on VAT and Income tax registration. The tax registration process will take you a day to be complete. After tax compliance, you can now submit your annual returns with the Internal Revenue Services according to the law requirements.
The law stipulates the deposit of the minimum share capital at the bank. And so, it’s your legal requirement to ensure that you open a corporate bank account of your choice. The process only begins the moment you get consent from the company directors/executives and other supporting documents including:
- The bank application form
- A copy of the certificate of registration.
- Identification documents of the directors and signature specimens.
- The company seal imprinting
Contact 3E Accounting Indonesia
Going through the process may seem cumbersome especially if you’re not familiar with the laws and regulations governing the process. But having a well-established consultant firm like 3E Accounting Indonesia saves you the time on company incorporate in Ecuador now more than ever. You may contact us for more information.