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Register your company in Ecuador 

by | Nov 7, 2022 | Corporate Structuring, Latin America

Register your company in Ecuador Quito – Luxembourg

Located in South America, Ecuador is fast gaining traction as one of the favored investment spots in the region due to its competitive economy. 

Investors and entrepreneurs choose to register a company in Ecuador because according to the Economic Commission for Latin America and the Caribbean (ECLAC), the economy of Ecuador is among those of favorable performance in Latin America. 

If you are thinking of expanding your business to Latin America, Ecuador is your ideal destination.

Benefits of registering a company in Ecuador

The low cost of living, in addition to the reasons outlined next, are some of the many reasons why entrepreneurs and investors are now turning their eyes toward Ecuador as a potential business destination: 

  • there are no foreign exchange challenges in Ecuador. 
  • registering a company in Ecuador comes with a low minimum share capital requirement 
  • investors in Ecuador stand to benefit in some of the country’s private sectors where corporate tax exemption is available for up to 5 years (conditions apply) 
  • The Ecuadorian law assures that both local and foreign investors are treated fairly and equally before the law. 
  • Investors who are registering a company in Ecuador’s free zones will gain a 100% exemption on taxes. 
  • In Ecuador, there are no limits on royalties that may be remitted when it comes to license and franchise transactions. 
  • It is possible to register a company in Ecuador that will be 100% owned by foreigners. 
  • The process of Ecuador company registration is not complicated. 

Ecuador’s economy has been on a steady rise over the past decades, and professionals believe that the growth will go on for decades to come. 

Choose  your legal types of companies in Ecuador

The most frequently used form of companies in Ecuador is as follows: 

  • Corporation (Anonymus Societies or Sociedades Anónimas or SA): corporations are the most traditional type of company in Ecuador. A corporation in Ecuador is an entity wholly based on its capital and is not established on the relationship between the shareholders. The shares of a corporation are freely transferable without any limitation. A corporation is registered by a contribution from the shareholders who have influence according to the size of their shares. The minimum required capital for Corporations in Ecuador is USD 800. 
  • Limited Liability Company (SRL): in Ecuador, LLC, have a minimum of two partners and a maximum of fifteen. In comparison to Corporations, LLCs are not permitted to operate in the finance system of Ecuador. Also, the modifications to their social structure are less bureaucratic than Corporations, this way they are easier to manage. It is essential to have a General Manager and a President in an LLC and the minimum required capital is USD 400. 
  • Simplified Shares Company (Sociedad por Acciones Simplificada or SAS): this is a company structure that can be registered with one or more shareholders. The main benefit of SAS is its flexibility to adapt to the specificities of each business. Its registration process is very flexible and its shareholders have full freedom to establish the rules of its operation in the bylaws. 

A branch of a foreign company can also be set up in Ecuador. 

Main steps to set up your company in Ecuador 

Before registering a company in Ecuador, it is highly recommended to consider the economic activity of the business and to also appoint a credible legal representative in the country. This will allow the registration process to go on smoothly and without any difficulties. 

To begin registering a company in Ecuador, here is what you have to do: 

Select the right type of company 

In Ecuador, there are many types of company structures to choose from. The decision must be made according to the company’s requirements, and objectives. 

Sign the power of attorney 

If the company shareholders are not present in Ecuador, they will have to grant a power of attorney to their legal representative, permitting him/her to set up the company in Ecuador on their behalf. 

Reserve the company name

The founder must choose a company name, check for the availability of the desired company’s name and register it at the Superintendence of Companies. 

Draft the company articles of incorporation and the bylaws 

The articles of incorporation and the bylaws enable the constitution of the company in Ecuador. This document is going to work as the backbone of the company and decree the way it will be run. This document needs the legal advice and signature of a lawyer in Ecuador to make sure that it covers all mandatory aspects. 

Register the company with the applicable authorities

The company must be registered with the Superintendence of Companies (SUPERCIA) 

The SUPERCIA is the government agency in charge of the regulation and organization of all companies in Ecuador. Once the registration is finished, the company will be assigned a personal number and the annual registration fee. 

It is also important to register the company at the Mercantile Registry Office (Registro Mercantil). This authorizes the legal registration of a company in Ecuador. 

Obtain tax identification number 

Once the company is registered, you can then apply for a Tax Identification Number at the Servicio de Rentas Internas (SRI). 

Obtain the “Tasa de Habilitación” 

The Tasa de Habilitación is a document that permits an office or commercial space to operate, as long as it acknowledges all safety dispositions and local regulations. 

The incorporator must pay for the Commercial Patent at the local Municipality to obtain the Tasa de Habilitación. 

Open a corporate bank account 

To start working, companies must also open a corporate bank account in Ecuador. 

It is also important to acquire the necessary Operations Permit. 

Ecuador is now a nation that is becoming a favorite for investors and entrepreneurs looking to register a company. Are you looking to start your business in Ecuador? 

Let’s go ahead and contact your Damalion expert now. 

Damalion – Luxembourg

Register your company in Ecuador — legal forms (SA, SRL, SAS), steps, required documents, taxes and permits, bank account basics, and practical timelines.

For foreign investors, entrepreneurs, holding companies, SPVs, and international groups • Damalion helps you prepare a clear file and coordinate accredited local experts. Acceptance by authorities and banks is at their sole discretion.

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What helps company registration move faster in Ecuador?

Use a simple and consistent file. Explain the business activity, ownership, and management in plain terms. List expected operations (invoices, suppliers, clients, locations). Provide clean corporate and personal documents. Answer follow-ups quickly.

Documents most authorities request

  • Shareholders and directors: valid passport/ID and recent proof of address.
  • Power of attorney when owners are not in Ecuador.
  • Draft bylaws and articles of incorporation signed by a local attorney.
  • Company name reservation with the Superintendence of Companies.
  • Ownership chart and signatory rules (who manages and who signs).
  • Tax registration data for the company and representatives.
  • For foreign documents: apostille and certified translation when requested.

Notes: Name reservation and corporate registration are handled with the Superintendence of Companies. Tax ID (RUC) is handled with the SRI. A municipal patent and the “Tasa de Habilitación” apply for premises.

Main legal forms

Form Core features Capital Ownership / governance Common use
SA (Sociedad Anónima) Share capital company. Shares are freely transferable. Typical minimum from USD 800. Shareholders’ meeting; board as defined in bylaws. Larger ventures, multi-shareholder structures.
SRL (Sociedad de Responsabilidad Limitada) Partners (2–15). More closed structure than SA. Typical minimum from USD 400. General manager and president required. SMEs and closely held businesses.
SAS (Sociedad por Acciones Simplificada) Flexible bylaws. One or more shareholders. Low minimum set in bylaws. Rules set in bylaws; simple governance. Startups and fast setup needs.
Branch Extension of a foreign company. As required by law and bylaws. Parent appoints local legal representative. Groups operating through an existing foreign entity.

Registration – step by step

  1. Choose the form and name. SA, SRL, SAS, or branch. Reserve the name with the Superintendence of Companies.
  2. Prepare bylaws and articles. A local attorney drafts and signs. Include activity, capital, shares/quotas, governance, and signatory powers.
  3. Grant a power of attorney (if abroad). Apostille and translate if required.
  4. Incorporate before the competent authority. Register with the Superintendence of Companies and the Mercantile Registry.
  5. Obtain the tax number (RUC) with SRI. Enrol for VAT and withholding if applicable.
  6. Municipal permits. Commercial patent and the “Tasa de Habilitación” for the premises.
  7. Open the corporate bank account. Provide corporate documents, IDs, tax data, and source-of-funds evidence.
  8. Post-incorporation housekeeping. Accounting setup, invoicing system, social security registration for staff, and basic internal controls.

Costs and timelines

  • Government fees for registration and registry entries.
  • Legal drafting and notary fees.
  • Translations and apostilles when needed.
  • Municipal patent and “Tasa de Habilitación.”
  • Bank account fees and ongoing company maintenance.
  • From a complete file to activation: usually a few days to a few weeks, depending on the form, city, and follow-ups.

Frequently asked questions

Can foreign shareholders own 100% of an Ecuadorian company?
Yes. Foreign ownership is permitted. Apply the same incorporation rules as for local owners. Observe sector rules where special licenses apply.
Which authority registers companies?
The Superintendence of Companies registers companies. The Mercantile Registry records acts and corporate changes.
Is a local legal representative required?
Yes. Companies must appoint a legal representative domiciled in Ecuador with powers described in the bylaws or a board resolution.
What is the typical minimum capital?
Common practice: SA from about USD 800; SRL from about USD 400; SAS may set a low capital in bylaws. Always check your draft with local counsel.
How do I get a tax number?
Obtain the RUC with the SRI after incorporation. Register for VAT and withholding if your activity requires it.
Do I need a municipal license?
Yes. Most businesses need a municipal patent and the “Tasa de Habilitación” to operate premises.
Are audited financial statements mandatory?
Audit requirements depend on thresholds and activity. Many SMEs use statutory accounting without audit. Large entities may require an auditor under current rules.
Can I incorporate remotely?
Yes, with a power of attorney and proper apostilles/translations when requested. Video identification may be used when accepted by the notary and authority.
How long does incorporation take?
With a complete file and quick responses, it is commonly completed in days or a few weeks. Timing depends on the city, workload, and document quality.
What are common restricted or regulated activities?
Financial services, certain telecom, transportation, health, and regulated industries may need prior licenses or supervision. Plan permits before trading.
Can a single shareholder form a company?
Yes, a SAS may have one or more shareholders. SA and SRL have different shareholder/partner rules.
How are directors and managers appointed?
Appointments are set in bylaws or by shareholder/partner resolutions, then recorded with the registry. The legal representative accepts the role and duties.
What taxes apply to companies?
Companies pay corporate income tax and may be subject to VAT and withholding. Rates and incentives depend on activity and location. Seek tax advice before trading.
Can profits be distributed abroad?
Yes. Dividends may be paid to foreign shareholders subject to tax rules and any withholding that applies.
Do I need a physical address in Ecuador?
Yes. A registered office address in Ecuador is required. It is used for notices and inspections.
What is required to open a corporate bank account?
Corporate documents, IDs, RUC, proof of address, and clear source-of-funds information. Banks apply their own KYC and AML policies.
How are changes (capital, directors, address) recorded?
Adopt a resolution, update bylaws if needed, and file with the registry and tax authority. Keep one clean trail of documents.
Can I operate only online?
Yes, if your activity allows it. You still need registration, tax number, accounting, and compliance with consumer and data rules.
Are shareholders’ agreements enforceable?
They are private contracts between owners. Align them with bylaws and the law. Register what must be public and keep the rest in private records.
What happens if my application is denied?
You may correct the issues and resubmit. If a bank declines an account, another bank may accept a stronger, clearer file.

10 Best Things to Do in Quito, Ecuador in 24 Hours

Maximize a tight schedule with historic sights and high-altitude viewpoints clustered around the Centro Histórico and nearby hills.

  1. Basílica del Voto Nacional — neo-Gothic landmark with tower climbs. Jump to map
  2. Plaza Grande (Plaza de la Independencia) — presidential palace, cathedral, arcades.
  3. Iglesia de la Compañía de Jesús — baroque interior covered in gold leaf.
  4. Iglesia y Plaza de San Francisco — convent complex and panoramic square.
  5. Calle La Ronda — cobbled street for artisan shops and cafés.
  6. El Panecillo & Virgen de Quito — citywide views; sunset favorite.
  7. TelefériQo — cable car up Pichincha for Andean vistas (weather-dependent).
  8. Parque Itchimbía & Centro Cultural — glass pavilion and skyline overlooks.
  9. Museo Casa del Alabado — pre-Columbian art in a colonial house.
  10. Mitad del Mundo (Equator) — quick excursion to the equatorial monument & museum.

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10 Best Hotels in Quito, Ecuador

  1. Casa Gangotena — luxury boutique facing Plaza San Francisco; historic mansion, fine dining.
  2. Illa Experience Hotel — intimate heritage property in San Marcos; curated local experiences.
  3. JW Marriott Quito — upscale rooms, pool & spa; New Town/La Carolina area.
  4. Swissôtel Quito — classic business hotel with multiple restaurants and fitness club.
  5. Hilton Colón Quito — central business location near El Ejido; large meeting facilities.
  6. Sheraton Quito — across from Quicentro and Parque La Carolina; convenient for shopping and events.
  7. NH Collection Quito Royal — modern option in La Floresta; walkable dining and cafés.
  8. Dann Carlton Quito — traditional full-service hotel near La Carolina; rooftop views.
  9. Hotel Carlota — design-forward boutique in the Historic Center; restored 1905 townhouse.
  10. Wyndham Quito Airport — best for late arrivals/early departures; onsite spa and shuttle.

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  • Graphic – Luxembourg
  • Graphic – Luxembourg

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