Company Registration in Ecuador: Eligibility, Documentation & Procedure Explained

This thorough guide for company registration in Ecuador offers complete guidance on the steps, advantages, costs, requirements, and documentation needed to register a company.

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Company Registration in Ecuador in 2023-24

Ecuador is situated right at the Equator and is the most diverse in terms of environmental diversity on the planet. It is becoming an important tourist destination and with the growth of its tourism industry rapidly. 

Ecuador is also becoming an attractive destination for foreigners looking to establish their businesses

company registration in ecuador

and trade. This is beneficial for the economy since more investors open their businesses in Ecuador.  

Investors can also reap benefits in a few of the private sectors in the country which offer tax-free corporate income offered for up to 5 years, provided the work is done in a different location than Quito as well as Guayaquil. This is why many investors from abroad decide to start an organisation in Ecuador.

To register a company in Ecuador, you should be familiar with the different types of business entities as well as the Mexican rules and regulations that may apply to your company registration in Ecuador.

Procedure for Ecuador Company Registration

The procedure for Ecuador company registration typically involves the following steps:

Step 1:- If you’re looking to register a company in Ecuador, it is first necessary to register the company’s name 

Step 2:- A notary is required to sign the Ecuador company registration documents as well as in the case of the bylaws. 

Step 3:- The next step is to sign up with the Superintendence of Companies to get the company’s registration number and be liable for the registration fee.

Step 4:- When you register a company in Ecuador, you will also have to make public announcements about the company in a mass-circulation local newspaper.

Step 5:- Later you must complete it to register for Social Security at the Ecuadorian Institute of Social Security and obtain a password to be in a position to use the system. 

Step 6:- The contracts of employees of the company must be registered by The Ministry of Labour. 

Step 7:- The last step is to purchase the commercial certificate from the municipal office of Quito.

The process of  Ecuador company registration would require approximately 4 weeks to finalise.

Documents Expected for Company Registration in Ecuador

To register a company in Ecuador, the following documents are typically expected:

  • Completed application form
  • Articles of incorporation
  • Proof of address
  • Identification of the directors and shareholders
  • Tax identification number
  • Bank reference
  • Certification of good standing
  • Power of attorney (if applicable)

Types of Entities for Company Registration in Ecuador

types of entities for company registration in ecuador

When you think to register a company in Ecuador, the most common form of entities are:

Limited Liability Company

The principal legislative requirement is that at least 50% of the capital authorised must be deposited at the beginning phase of the company. The minimum capital requirement is $ 400. In Ecuador, in the early part of the XXI century local currency was eliminated instead the US dollar was used for money circulation.

Joint company

This type of business is created as a partnership between citizens and residents. The benefit of this type of business is the most tax-efficient benefits in addition to the less risky nature of investments. The drawback is that not every company can find a skilled local businessman, as the number of people who are economically active in the country is lower than 10 million.

Sole Proprietorship

In this scenario, the businessman can be a founder and also an employee in the business. There are many benefits in Ecuador, as you can claim an income tax deduction if at least 15% of the profits for the period of registering is circulated to the employees.

Limited partnership

In a limited partnership, it is common to have different types of founders. Certain of them are personally accountable for their debts, whereas others will be able to take on a lesser liability. Therefore, the amount of influence it has on the business is dependent on the position that the founder has.

Representation for a foreign corporation 

The downside is the large amount of capital authorised which is $2000. It’s easier and less costly for entrepreneurs to start either an LLC as well as an independent company.

Opening a business in Ecuador is a promising way to invest in an uncertain world. There isn’t any corruption issue in the country, in the manner that is commonplace in the post-Soviet world and, thus when you consider the potential for growth that is Ecuador’s economy, it’s worthwhile to invest in the country.

Eligibility for Ecuador Company Registration

eligibility for ecuador company registration

Eventually, the following requirements must be met for company registration in Ecuador:

  • Legal entity: The firm should be a legal entity, such as a corporation, LLC, or limited partnership.
  • Business name: The company name should be unique and not already utilised by another firm.
  • Registered address: The firm should possess a registered address in Ecuador.
  • Directors: The firm should possess a minimum of one director who is a resident of Ecuador.
  • Ownership: The firm should be owned by Ecuadorian citizens or legal entities. Foreign individuals or entities may own up to 49% of the company.
  • Minimum capital requirement: The least capital necessity varies relying on the type of firm being registered.
  • Business activities: The company must engage in lawful business activities that are not restricted by Ecuadorian law.
  • Tax compliance: The firm should relent with Ecuadorian tax laws and regulations.

It is suggested to endure legal advice when thinking of company registration in Ecuador to ensure compliance with all regulations and requirements.

Various Taxes on Ecuador Company Registration

In Ecuador, income from foreign sources can be tax-free, if the business can prove that the income tax was paid in foreign currency.

It is very essential to be aware of such taxes, before company registration in Ecuador:

  • The corporate income tax rate stands at 22%. 
  • The CIT rate is perhaps 25% when the business is owned by a resident from the tax haven that is considered to be tax-free. 
  • The value-added tax (VAT) tax rate for Ecuador is 12.00%, placing Ecuador as 61st in comparison to the taxation rate for VAT worldwide. 
  • For other taxes, employers will contribute 11.15% of what is equivalent to a social security account, and an employee contributes 9.45%.

Cost to Register a Company in Ecuador

The cost of registering a company in Ecuador can vary depending on several factors, such as the type of company, the amount of capital being invested, and the legal and professional services being used.

However, some general estimates of the costs associated with registering a company in Ecuador are as follows:

  • Legal fees: Legal fees for registering a company in Ecuador can range from USD 500 to USD 1,500.
  • Government fees: The government fees for registering a company in Ecuador are relatively low, ranging from USD 200 to USD 500.
  • Notary fees: Notary fees for registering a company in Ecuador can range from USD 100 to USD 300.
  • Accounting and tax services: Accounting and tax services can range from USD 500 to USD 1,500 per year.
  • Company seal: The cost of a company seal can range from USD 50 to USD 100.

It is recommended to obtain quotes from several service providers to ensure that you are getting the best value for your money when registering a company in Ecuador.

Why register a company in Ecuador?

Well, there are multiple reasons why entrepreneurs may prefer to register a company in Ecuador, including:

  • The process of registering a company in Ecuador can be completed in as little as one day and is streamlined for foreign investors.
  • This country in Western Latin America has a robust economy that is well-developed and has great oil and gas resources, as well as crude oil production. 
  • Ecuador is a member of the Andean Community, which offers access to a market of over 120 million consumers in South America.
  • Investors who register companies in Ecuador’s free zones also benefit from the exemption of 100% from taxes (VAT municipal taxes, provincial taxes, and import duties included).
  • Ecuador has implemented pro-business policies aimed at attracting foreign investment, such as free trade zones and investment incentives.
  • Ecuador has a highly educated workforce, with a strong emphasis on technical and engineering education.

It’s important to note that while Ecuador offers many benefits for registering a company, it is also important to consider other factors, such as the country’s political and economic stability, before making a final decision.

Advantages of Ecuador Company Registration

There are several advantages of Ecuador company registration a company including:

Dynamic economy

According to the Economic Commission for Latin America and the Caribbean (“ECLAC”), the Ecuadorian economy is among those of good performance in Latin America. 

Ecuador foreign investments

Ecuadorian law also plays a role in promoting private investment in the economy and promises entrepreneurship freedom.

Strategic location 

Situated to the North of South America, on the coast of the Pacific Ocean, Ecuador is blessed to have direct access to the Pacific Ocean due to its strategic position.

Favourable tax regime

Ecuador has a favourable tax regime, with low tax rates, exemptions for certain types of income, and tax incentives for foreign investors.

Growing economy 

Ecuador has a growing economy, with a strong export sector and a growing middle class.

Free trade zones

The free trade zones in Ecuador allow investors to import raw materials and machinery without paying any taxes. Similarly, the exportation of finished or semi-processed goods will be duty-free.

Access to financing 

Ecuador has a developed financial sector, with access to local and international financing options.

Overall, Ecuador company registration can provide many advantages for industries seeking to create an existence in the territory.


If you decide to open an organisation or register a company in Ecuador, foreigners can hold 100% ownership of the business. This implies that the legal frame doesn’t require entrepreneurs to be Ecuadorian as an investor.

Company registration in Ecuador. is an intimidating procedure, though it’s advised to get help from professional experts from Odint Consultancy to guide you through the process of company registration in Ecuador.


Businesses can benefit from the advantage that Ecuador allows 100 % capital ownership of foreign companies without the requirement for approval and prior approval.

Earnings earned outside Ecuador by Ecuador-resident individuals, whether local or foreign tax-free.

Ecuador permits three kinds of businesses that are: Companies (Sociedad Anonima), Limited Liability Companies (Compania Limitada), or wholly owned subsidiaries (Sucursal Extranjera).

The average rate is 25% and this rate can be reduced or increased under certain circumstances.

You must either have lived for three years in Ecuador as a resident legal or be engaged to one of the Ecuadorian over 3 years.