Shareholders must grant a power of attorney to their legal representative and give them permission to incorporate the company in Ecuador. The parent company must adopt the appropriate decision authorizing the opening of its branch in Ecuador. Once the application is submitted, the notary will review and approve it. The President, CEO and shareholders must then sign the relevant letter and documents. Then the notary sends the letter, documents and all the information to the commercial register, which verifies them and, if approved, registers the company. At this stage of the procedure, the tax administration issues the company its tax identification number (RUC). At present, the company is legally registered. However, there are other obligations that must be fulfilled: the shares within this type of company are freely exchangeable, that is, the shares can be sold or transferred without the consent of the shareholders. It is satisfied with at least 2 partners and there is no maximum limit on partners or actions. Certificate of accreditation on the legal establishment of the company in the country of origin. This certificate must be issued by the Consul of Ecuador. That company has been defined as `a type of commercial company formed by one or more persons by a simplified procedure to promote the formalisation and development of companies`, as stated in Article 3(9) of the abovementioned Law, and as `a company whose nature will always be commercial, irrespective of its operational activities`.
as indicated in the first article of the first transitional provision. Once we have chosen the type of business we want to set up, we need to start the process of starting the business. A president and CEO should be put in place for all companies. Once the names of the company`s representatives have been registered in the commercial register, proceed to obtain the Unified Register of Taxpayers (RUC). The corporate purpose of the Company must include a single business activity and may include the development of several stages or phases of the same activity that are interconnected or complementary, provided that the Company is integrated into a single economic classification, such as pharmaceuticals, mining, real estate, construction company, among others. The name of this type of company must contain the name of one or more partners, within this type of company there are two types of partners, limited partners (joint and several) and limited partners (fund providers). The legal representative will usually start the process with a lawyer. During the online process, the legal representative reserves the name of the company and fills in the documentation with all the necessary documents of the company. Tax and legal management, President, Chief Executive Officer and shareholders, including their participation in the company. This application contains the status of the company, the corporate purpose and the additional activities that the company will carry out. It is considered a family business, since the management of the shares must be unanimously approved by all shareholders, the number of shareholders varies from 2 to a maximum of 15. In general, the following steps must be followed to create the company: To start a business in Ecuador, you must first perform the following steps: All types of companies are subject to the regulation of the supervision of the company, which verifies the annual financial statements and ensures compliance with the existing regulations: The types of companies accepted by the Ecuadorian State, without taking into account NGOs, foundations and cooperatives, we advise investors, companies and entrepreneurs, the protection of corporate affairs of all kinds: investment protection, creation of companies, transfer of shares and participations, accompaniment to ordinary and extraordinary meetings and compliance with work obligations; We also advise on tax and visa matters.
We need to determine the name of the company and reserve its company name. Tags: Business creation | | Legality Legal representation This type of company is formed by the participation of the private and public sectors. It is largely in line with the provisions applicable to public limited companies. The capital is divided into shares. If the public sector holds more than 50% of the shares, one of the public sector directors must be the chairman of the board of directors. Prepare the statutes of the company with the support of a lawyer and raise them to a public deed before a notary. Consult us to start a business in Ecuador. Our lawyers will help you throughout the process. The power of attorney that authorizes a representative in Ecuador must be issued by the parent company.
Sometimes it can be difficult to find qualified information if someone is interested in starting a business/company in Ecuador. Most of the time, the information is incomplete or incomprehensible. With this in mind, we have prepared a legal summary of everything you need to know when starting a business in Ecuador. Our services aim to provide the necessary advice to protect your investment, taking into account your needs and the nature of the economic activity, for which we can legally structure the most appropriate type of business. If you have any questions about starting a business in Ecuador, our local team of Ecuadorian experts has created a presentation on starting a business. If you have any questions about starting your business in Ecuador, please contact us. Our Biz Latin Hub team in Ecuador is made up of local professionals and expats who have the experience and knowledge to help you through the process. 1. Free of shares and shareholders in the case of public limited companies, or of the book of partners and participations in the case of limited liability companies. In this book, titles and nominative acts are marked with a note of transfers, the constitution of rights in rem and other amendments concerning the right to shares or participations. Integrate a bank account with the specified capital depending on the type of business. In the event that a foreign company, duly formalized as a legal entity, intends to offer services in Ecuadorian territory, contracts with private or public companies, exploitation of natural resources, import or export or others provided for by Ecuadorian law, it must establish a subsidiary.
In the event that a foreign company, organized as a legal entity, wishes to provide public services, exploit natural resources or carry out a legally authorized activity in Ecuador, it must first establish a branch (see requirements see articles 415 to 419 of the Companies Law). It also depends on whether the company is under the full control of the competent company, in this case it is subject to control over the legal, corporate, economic, financial and accounting aspects, this control is exercised by: mixed enterprises, holding companies, branches of foreign companies, issuers of bonds, companies subject to the law on the securities market. If it is subject to partial control, the control applies to the approval or rejection of acts of the company, such as capital increases, amendments to the articles of association, mergers, divisions, dissolutions, liquidations, among others. Any company subject to the supervision of the Supervisory Authority for Companies, Securities and Insurance must properly protect and maintain the « company books », which represent the following: For the procedures to be carried out in matters of social security, you can consult the page IESS: www.iess.gob.ec In principle, two types of companies subject to the supervision of the supervision of companies and securities, The first is the company with limited capital and personalistic characteristics, and the other is the company, with free capital, both companies are perfectly valid and depend on the turning point of business strategies and growth and investment. For more information on how to get the RUC, you can check out the SRI page: you can reserve any name for your company, provided it is available and meets the booking parameters, our services include the tips and procedures necessary to complete this step. In addition to the above requirements, it must meet the following requirements: if the Constitution is in the regular manner, it can last up to a period not exceeding 30 days, the difference with the Electronic Constitution is that the regular constituent process first undergoes a more complete control than in the electronic process, without this meaning that it is exempt from subsequent control. Information on the types of visas can be found at the following address: A minimum or maximum NPV is not fixed, but 50% of the total value of this capital is issued during the Constitution.