What are the Most Common Types of Companies in Ecuador?
What are the most common types of companies in Ecuador? Registering a company or legal structure is the first and most important step to launching your business in Ecuador. Depending on the number of people that are going to be involved, the Share Capital available, and the nature of the business you and your partners have to choose the right type of legal structure.
Ecuador is a popular destination for business owners and inves3tors since it has a stable government, strong politics supporting new businesses and foreign investors, and a highly skilled workforce.
What are the most used types of legal structures in Ecuador? How to register a company in Ecuador? What is a ‘SAS’ in Ecuador? What is an ‘SRL’?
‘Sociedad de Acciones Simplificadas’ or Simplified Shares Company (SAS)
A ‘SAS’ in Ecuador can be registered with one or more Shareholders.
In comparison to other types of companies in Ecuador, the registration process is easier and faster. It can even be done online.
Incorporating a ‘Sociedad Anonima’ requires a minimum of 2 Shareholders, and there is no maximum limit.
The minimum required Shared Capital for a Corporation is 800 USD.
The Share Capital of a Corporation depends on the contribution the Shareholders make. It is divided into Shares that can be freely transferred, sold, or inherited, depending on the conditions specified in the Bylaws.
‘Sociedad de Responsabilidad Limitada’ or Limited Liability Company (SRL)
The minimum required Share Capital is 400 USD, 50% of which has to be paid at the moment of incorporation and the rest in the following 12 months.
The Share Capital is divided into equal Shares.
It requires a minimum of 3 Shareholders at the moment of incorporation and a maximum of 15.
Additionally, it needs a Board of Directors, a President, and a General Manager.
‘Sucursal’ or Foreign Branch Company
It is necessary to translate and present the Article of Incorporation and Bylaws of the leading company.
The Share Capital has to be a minimum of USD 2,000.
A local Legal Representative has to be appointed through a notarized Power of Attorney (POA).
The Ecuadorian consulate in the country of incorporation has to verify the existence of the main company and approve it.
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At Easyco, we make company formation in Ecuador easy; our corporate experts have vast experience helping companies and individuals register their businesses in Costa Rica. Furthermore, we have a proven track record of success across all of our services. Easyco aims to tackle the complex company formation processes across LATAM. We make business registration easy by providing a hassle-free online company registration experience.Start your company in Ecuador today!
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