Business entities in Ecuador in 2024

pay fee by instalmentsbusiness setup without travelGuaranteed solutions

The 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. 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

LLC Corporation Branch Office
How long to set the company up? 12 weeks 12 weeks 14 weeks
How long to open company bank account? 3 weeks 3 weeks 3 weeks
Issued share capital required US$400 US$800 US$2,000
Allowed to sign sales contracts with local Clients? Yes Yes Yes
Allowed to invoice local Clients? Yes Yes Yes
Ecuador corporate tax payable? 0.22 0.22 0.22
Corporate bank account Citibank Banco del Pichincha Banco del Pacífico
Can rent office premises in Ecuador? Yes Yes Yes
Allowed to import raw materials? Yes Yes Yes
Allows to export goods? Yes Yes Yes
Can the entity hire expatriate staff in Ecuador? Yes Yes Yes
Tenancy agreement required before incorporation? No No No
Do you visit Ecuador for company incorporation? No No No
Individual shareholders allowed? Yes Yes Yes
Corporate shareholders allowed? No Yes N/A
Corporate director(s) allowed? No No No
Resident director required? No No N/A
Resident representative required? No No Yes
Resident shareholder required? No No NA
Minimum number of directors 1 1 NA
Minimum number of shareholders 3 2 NA
Statutory audit required? No No No
Annual tax return to be submitted? Yes Yes Yes
Access to US double taxation treaties? Yes Yes Yes
Estimate of engagement costs US $ US $ US $
Total Ecuador business setup costs in Yr. 1 13,950 15,200 16,200
Subsequent annual costs (incl. accounting and tax fee) 4,400 5,400 5,400
Healy Consultants Invoice View invoice PDF View invoice PDF View invoice PDF

Contact us

For additional information on our business setup services in Ecuador, please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
  • Mr. Petar Chakarov
  • Sales & Business Development Manager
  • Contact me!
ecuador-bank ecuadorian american chamber of commerce ecuador ministry of finance ecuador public procurement