Business entities in Ecuador

Business entities in Ecuador

Setup company in EcuadorThe most commonly registered business entities in Ecuador are the limited liability company (LLC) and the Corporation. Additionally, our corporate Clients may choose to register a branch office in Ecuador. Healy Consultants will assist our Clients with choosing the optimum corporate structure based on their business needs.

The Ecuador Limited Liability Company

  • The Ecuador LLC can be setup with 1 director and 3 shareholders, who can be of any nationality. However, foreign corporate entities are not allowed to be shareholders of an LLC. The shareholders must deposit at least US$400 prior to company registration;
  • All LLCs holding assets worth US$1,000,000 must appoint an auditor and submit annual audited financial statements to the authorities.

The Ecuador Corporation

  • Our Clients may choose this Ecuador business setup if they wish to raise capital from the public. To successfully setup this entity, at least 1 director and 2 shareholders will be required, who can be of any nationality;
  • The minimum initial capital required to setup a corporation will be US$800. If our Client wishes to list their company on the local stock market, they must register with the Securities Market Registry (RVM).

Branch Office

  • This Ecuador business setup can be used by foreign companies for operating in the country. To setup this entity, the foreign company must i) deposit minimum share capital of US$2,000 and ii) appoint a resident individual as the legal representative in Ecuador;
  • A branch office can only pursue business activities within the scope defined by the parent company. However, it is allowed to invoice local customers, sign local sales contracts and receive income from customers.

Table of comparison between business entities

 LLCCorporationBranch Office
How long to set the company up?12 weeks12 weeks14 weeks
How long to open company bank account?3 weeks3 weeks3 weeks
Issued share capital requiredUS$400US$800US$2,000
Allowed to sign sales contracts with local Clients?YesYesYes
Allowed to invoice local Clients?YesYesYes
Ecuador corporate tax payable?0.220.220.22
Corporate bank accountCitibankBanco del PichinchaBanco del Pacífico
Can rent office premises in Ecuador?YesYesYes
Allowed to import raw materials?YesYesYes
Allows to export goods?YesYesYes
Can the entity hire expatriate staff in Ecuador?YesYesYes
Tenancy agreement required before incorporation?NoNoNo
Do you visit Ecuador for company incorporation?NoNoNo
Individual shareholders allowed?YesYesYes
Corporate shareholders allowed?NoYesN/A
Corporate director(s) allowed?NoNoNo
Resident director required?NoNoN/A
Resident representative required?NoNoYes
Resident shareholder required?NoNoNA
Minimum number of directors11NA
Minimum number of shareholders32NA
Statutory audit required?NoNoNo
Annual tax return to be submitted?YesYesYes
Access to US double taxation treaties?YesYesYes
Estimate of engagement costsUS $US $US $
Total Ecuador business setup costs in Yr. 113,95015,20016,200
Subsequent annual costs (incl. accounting and tax fee)4,4005,4005,400
Healy Consultants InvoiceEcuador LLC setup costEcuador corporation invoiceEcuador branch invoice

Contact us

For additional information on our business setup services in Ecuador, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
ecuador-bank ecuador-tourism ecuadorian american chamber of commerce ecuador ministry of finance ecuador public procurement