Doing Business in Ecuador

Ecuador offers several types of entities that can be incorporated, including:

Registration with the Commercial Registry is required for all entities.

Foreign entities can establish a presence in Ecuador through branches or subsidiaries.

Companies in Ecuador must comply with the following corporate governance requirements:

Annual shareholders’ meetings must be held once a year during the first three months of the year.

Foreign investors can participate in local companies, but they must comply with Ecuadorian laws.

Businesses in Ecuador are subject to the following compliance requirements:

There are no specific rules regulating supply chain compliance.

Companies prepare and disclose annual accounts/financial statements in accordance with past practice, usually applying GAAP rules.

Businesses in Ecuador are subject to the following taxes:

There are tax incentive regimes available in Ecuador through investment contracts with the central government.

Ecuador has a merger control regime administered by the Superintendence of Market Power Control (SCPM).

Foreign investors can acquire local companies, but subject to certain conditions and regulations.

The most common way to wind up/liquidate/dissolve an entity in Ecuador is through the dissolution and liquidation process, which involves:

For more information about doing business in Ecuador, please contact:

Ricardo Menendez, Partner at Deloitte in Ecuador

rimenendez@deloitte.com +593.4.3700100 ext 1234