Ecuador epitomizes a land of dichotomies and prospects, exceedingly propitious for habitation and commercial ventures. Situated in South America, Ecuador captivates with its unique traditions, exquisite landscapes, and abundant assets. The foundation of Ecuador's economic structure rests on two principal sectors: agronomy and extraction.

The preponderance of Ecuadorians secure employment within these pivotal sectors. Both agronomy and extraction furnish consistent remuneration and avenues for advancement. Entrepreneurs will discover an encouraging milieu for business pursuits here. This is a vibrant nation that presents novel possibilities.



Contribution to well-being

GDP per capita (USD)


Cultivation of cocoa, bananas, coffee and other crops

Ensures the well-being of the local population


Mining industry

Mining of gold, silver, copper and other valuable resources

One of the most profitable sectors

24 000

Ecuador may emerge as an enthralling realm for to do business owing to its steadfast economy, propitious investment milieu, and burgeoning market. This nation boasts one of the most unflappable economic frameworks in South America, characterized by negligible inflation and modest expansion. The administration zealously beckons overseas capital by proffering a plethora of fiscal incentives and inducements tailored for extrinsic enterprises. Labor expenditures remain comparatively subdued, rendering it appealing to firms in pursuit of cost reduction strategies. Moreover, Ecuador partakes in the Andean Pact and maintains free commerce accords with a multitude of states, thus augmenting business access to expansive markets.

Nonetheless, potential complexities warrant consideration. The trajectory of initiating and steering a commercial venture in Ecuador can be labyrinthine and onerous due to bureaucratic intricacies. Corruption persists as a formidable impediment, potentially complicating commercial operations. The infrastructural framework within Ecuador might be nascent, particularly in pastoral locales, thereby posing challenges for enterprises. Additionally, elevated crime rates in certain Ecuadorian sectors further amplify risks for businesses. Political volatility further marks the country's landscape.Prudent deliberation of the advantages and drawbacks is crucial prior to committing to entrepreneurial activities within this territory. It is prudent to engage with a jurist proficient in Ecuadorian business jurisprudence to assist with the intricacies of commencing and managing an enterprise there.

Advantages and disadvantages of registering a company in Ecuador

The merits of inaugurating an enterprise in Ecuador are substantial. It boasts among the minimal taxation systems in South America. Revenue levy ranges from 22-28%, yet there exist numerous enticing inducements for small and mid-sized ventures. The US dollar serves as the sanctioned currency of Ecuador, which furnishes steadiness and foreseeability for enterprises. The economy is expanding briskly, thereby unveiling novel prospects.

Remuneration expenditures in this region are considerably modest, which may allure enterprises seeking to curtail their expenditures. Ecuador has liberal commerce pacts with 26 nations, granting Ecuadorian firms entry to principal markets. The procedure for enlisting a corporation here is notably swift and straightforward. The bureaucratic expenses of operating commercially are also minimal. Ecuador's judicial framework is lucid and evident, and the administration endorses overseas investment and provides various commercial inducements. Ecuador is celebrated for its superior living standards, which may appeal to international staff.

There subsist numerous detriments likewise. Albeit the procedure of enlisting an enterprise is comparably elementary, there persists a considerable quantum of bureaucracy in Ecuador. Malfeasance is a prominent quandary, potentially complicating commercial endeavors. Inflation may oscillate, and infrastructure, which is rudimentary in certain locales, might augment expenditures for enterprises. Procurement of finance for commerce in Ecuador may be constrained.

There exist disadvantages including elevated delinquency frequencies and governmental turbulence. Procuring adept personnel may present challenges. Furthermore, Ecuador's remote proximity to principal global markets potentially elevates the expenses associated with exports.Conclusively, this nation might present a compelling locale for incorporation to certain enterprises.

Choosing the type of company to do business in Ecuador

Selecting the form of enterprise to engage with in Ecuador constitutes a critical maneuver that dictates the administrative framework, fiscal obligations, proprietorship duties, and additional facets of your enterprise.

There exist numerous principal varieties of enterprises in Ecuador.

Sociedad de Responsabilidad Limitada (S.R.L.)

This is the predominant configuration suitable for diminutive and intermediate enterprises. It possesses a multitude of benefits that render it a compelling option for numerous entrepreneurs:

Limited Liability:

  • The proprietors of S.R.L. shall not be individually accountable for the liabilities or indebtedness of their corporation.
  • Their hazard is confined to the quantum they have subscribed in the share capital.

Ease of registration:

  • The procedure for enrolling an S.R.L. in Ecuador is fairly straightforward and demands little duration. You necessitate a minimum of two stockholders, a minimal authorized capital of $800, and a documented location.


S.R.L. might be adapted to align with your predilections. You may designate the count of stakeholders, their prerogatives and obligations, and the mode through which the enterprise will be administrated.


Data on the proprietors of S.R.L. remains non-disclosed.

Doing business as an S.R.L. in Ecuador:

  • S.R.L. ought to maintain fiscal ledgers and render pecuniary declarations to the pertinent overseers.
  • It is imperative to convene perennial congregations of stockholders and document their resolutions.
  • S.R.L. may apportion earnings amidst its proprietors via dividends.

S.R.L. - constitutes an efficacious and economical method for conducting commercial activities in Ecuador. Thus, here is a succinct recapitulation:

  • This is the most prevalent form of enterprise in Ecuador.
  • Excellent for diminutive and intermediate sized enterprises.
  • Restricted responsibility for shareholders.
  • Minimum authorised funds are $800.
  • No minimum count of shareholders mandated.
  • Comparatively uncomplicated incorporation procedure.

Sociedad Anónima (S.A.) - Joint Stock Company

It is a conglomerate equity corporation in Ecuador apt for expansive corporations. S.A. possesses several merits that render it a compelling option for financiers:

Limited Liability:

Proprietors of a corporation are not individually accountable for the debts and commitments of the enterprise. Their exposure is confined to the sum they have injected into the stocks.

Attractiveness to investors:

A company can allot shares, enabling the raising of funds from additional stakeholders. This could prove especially advantageous for grand undertakings demanding substantial investment.

The company can be organized to accommodate your specifications. You can specify the count of shareholders, their entitlements and responsibilities, and the method of company governance.


Intelligence regarding the proprietors of S.A. is not openly accessible.

Sociedad de Hecho - Partnership:

This is the most uncomplicated manner of conducting commerce in Ecuador and constitutes a collaboration between two or more individuals.

The principal benefits are:

  • Effortless to establish: no enrollment with state authorities is obligatory. You merely necessitate a verbal or scripted concordance amidst the collaborators.
  • Economical: there are no enrollment levies or additional imperative expenses.
  • Adaptable: collaborators are at liberty to ascertain their entitlements, commitments, and the administration of the enterprise.

Nevertheless, Sociedad de Hecho also possesses certain drawbacks:

  • Unbounded responsibility: the comrades are personally liable for all debts and obligations of the firm.
  • Absence of juridical standing: Sociedad de Hecho does not possess a distinct juridical personality. This can complicate transactions with other firms or securing credit.
  • Challenge in settling disagreements: in case of disagreements among comrades, it can be arduous to settle them due to the absence of a formal agreement.

Sociedad de Hecho is suitable for small, low-risk businesses.

If you plan to start a small business with close friends or family members, Sociedad de Hecho may be an easy and affordable option.

However, if you plan to run a large business or co-operate with outsiders, it is recommended that you choose another form of business such as S.R.L. or S.A..

In this case, you will be given limited liability, legal status and a clearer management structure.

Sucursal de una Empresa Extranjera - Branch of a foreign company

Filaments can be established to transact business in Ecuador sans the necessity to form a distinct juridical entity. This may prove alluring for overseas enterprises seeking to evaluate the market or broaden their activities in Ecuador.

Merits of inaugurating a branch bureau for an alien corporation in Ecuador:

  • Facilitation of inception: the procedure of enrolling a subsidiary is quite straightforward and does not necessitate significant time.
  • Restricted accountability: the progenitor enterprise is not individually accountable for the debts and duties of the subsidiary.
  • Commercial ingress: subsidiaries can conduct commerce in Ecuador under identical conditions as Ecuadorian enterprises.
  • Adaptability: the progenitor enterprise has the liberty to oversee the affiliate and ascertain its configuration.

Drawbacks of inaugurating a subsidiary of an overseas enterprise in Ecuador:

  • Documenting: appendages must maintain bookkeeping archives and present tax filings to the pertinent regulators.
  • Command: the progenitor corporation wields complete command over the appendage.

Empresa Unipersonal - Individual Entrepreneur:

This is the most straightforward form of conducting commerce in Ecuador and constitutes a sole proprietorship by one individual.

Empresa Unipersonal presents several benefits:

  • Slight disbursements: there are no matriculation imposts or supplementary obligatory outlays.
  • Unfettered sovereignty: the proprietor enjoys absolute control over the venture.

Nevertheless, Sole Proprietorship also harbors certain drawbacks:

  • Inexhaustible responsibility: the possessor of the enterprise must be personally accountable for all debts and obligations of his or her business.
  • Absence of juridical status: Enterprise Singular does not possess a distinct legal entity, which can complicate transactions with other enterprises or secure credit.
  • Challenge in transposing the enterprise: in the case of the demise or incapacity of the possessor, the enterprise ceases to subsist.

Empresa Unipersonal for diminutive, minimal-risk enterprises.

If you intend to commence a slight enterprise that you will personally administer, sole proprietorship may be a straightforward and economical choice.

Nevertheless, if you intend to administer an extensive enterprise or collaborate with externals, it is advised that you select an alternative business format such as S.R.L. or S.A..

In this scenario, you will receive restricted liability, juridical stature, and a more explicit governance arrangement.

The enrollment procedure comprises the subsequent stages:

  1. Selection of the firm appellation, which ought to be singular and in accordance with statutory prerequisites.
  2. Drafting of the articles of incorporation:

The covenant of incorporation ought to encompass the firm's appellation, locale, commercial intent, sanctioned resources, shareholder particulars, corporate governance protocols, and sundry consequential stipulations.

  • Firm Enlistment:

You need to submit the Memorandum of Association and other necessary documents to the Ministry of Production, Foreign Trade, Investment and Markets.

  • Acquiring a commercial license:

Upon you have enrolled your firm, you must procure a commercial license from the local governing body.

List of required documents for registering a company in Ecuador

The exact list of documents for registering a company in Ecuador may vary slightly depending on the chosen form of doing business and the specific requirements of the municipality in which you will register.

However, in general you will need:

  1. Constituent documents:
    • Articles of Association (for S.R.L. and S.A.)
    • Agreement on the establishment of a company (for Sociedad de Hecho)
  2. Identity documents:
    • Copies of passports or identity cards of all shareholders/participants.
    • Power of attorney for a representative (if he acts on your behalf).
  3. Legal address:
    • A lease agreement or a document confirming ownership of the premises, which will be the legal address of the company.


  • Translate all documents into Spanish.
  • Notarize the translation.
  • Make copies of all documents.

You can apply for company registration in person at the Ministry of Production, Foreign Trade, Investment and Markets (MIPCI) or online on the MIPCI website. After submitting the documents, you will be issued a company registration certificate.

Applying for company registration in Ecuador

The registration application process may vary slightly depending on the form of business you choose. Here are the main documents you will need:

Selecting a registration form:

  • Preparation of documents.
  • Submitting an application:
  • Consideration of the application:
  • Obtaining a certificate of registration:

Before registering a company, it is recommended to consult with a lawyer specializing in corporate law in Ecuador. A specialist will help you choose the right form of doing business, prepare the necessary documents and register the company in accordance with the laws of Ecuador.

Payment of state fees for company registration in Ecuador

The state fee for registering a company depends on the form of business and the authorized capital of the company.

Here are some examples:

Sociedad de Hecho: Free


  • Up to $1,000: $10
  • From $1,000 to $4,000: $10 + 1% of amount exceeding $1,000
  • Over $4,000: $44 + 0.5% of amount over $4,000


  • Up to $10,000: $10
  • From $10,000 to $40,000: $10 + 1% of amount exceeding $10,000
  • Over $40,000: $440 + 0.5% of amount over $40,000

In addition to the state fee, you will also need to pay:

  • Notary fees
  • Document translation fees
  • Other expenses that will be required.

You can pay stamp duty and other fees by cash, check or credit card at the Ministry of Production, Foreign Trade, Investment and Markets (MIPCI). You can also pay online on the MIPCI website.Before paying the government fee, check the exact amount on the MIPCI website and keep the payment receipt.

Opening a bank account for company registration in Ecuador

Here are a few steps you need to take to open a bank account for your company in Ecuador:

Choosing a Bank: There are many banks operating in Ecuador, both local and international. When choosing a bank, you should consider factors such as:

  • Service fee
  • Interest rates on deposits and loans
  • Services offered by the bank (e.g. online banking, international transfers)
  • Bank reputation

Collection of necessary documents:

You will need to provide the bank with a number of documents, including your company's incorporation documents, business license, passport or ID of all shareholders/members and proof of address.

Submitting an application to open an account:

You can apply to open an account in person at a bank branch or online. Fill out the application form and provide all required documents. The bank will check your application and documents. If everything is in order, a bank account will be opened for you.

Please note that the requirements for opening a bank account may differ slightly from bank to bank. It is recommended to compare offers from different banks before opening an account. You should also review the terms and conditions of your bank account before opening one.

Taxes associated with registering and doing business in Ecuador

The tax system of Ecuador is multi-level and includes various types of taxes, both state and municipal. To accurately determine your company's tax liability, you are advised to consult with a tax professional experienced in Ecuador. He will help you understand the current legislation and optimize the tax burden on your business.

Here is some general information about the main taxes your company may face in Ecuador:

  1. Income tax:
    • The standard income tax rate in Ecuador is 25%. However, there are both reduced (22%) and increased (28%) rates, depending on the residence of the company.
  2. Value added tax (VAT):
    • The standard VAT rate in Ecuador is 12%. There are also goods and services that are exempt from VAT or subject to VAT at a reduced rate.
  3. Property tax is levied on real estate located in Ecuador. The tax rate depends on the municipality in which the property is located.
    • In addition to taxes, you will also need to pay social security contributions for your employees and other possible fees and charges.

Ecuadorian tax laws change frequently. You need to regularly monitor changes in legislation to ensure you remain compliant.

Permits and licenses required to register a company in Ecuador

Here are some examples of permits and licenses you may need:

License to provide services in the field of medicine: to obtain this license, qualified medical personnel are required, as well as compliance with sanitary standards. Pharmaceutical Import and Sales Permit is required for companies engaged in the import, export or sale of pharmaceuticals.

A license to carry out insurance activities can be acquired by a company with sufficient capital, experienced personnel, and which meets the requirements established by the SCVS (Superintendencia de Compañías, Valores y Seguros) - the Ecuadorian government body responsible for regulating and supervising the insurance market, the securities market and the private sector system. pension funds. Each type of insurance activity, such as health insurance, life insurance or property insurance, requires a separate permit.

Educational Institution: A license to conduct educational activities may be available if it has qualified personnel, a curriculum that meets the standards of the Ecuadorian Ministry of Education, and certain appropriate infrastructure. Certain subjects or programs, such as medicine or law, may require a separate permit to teach.

Zoning Permit:

This permit is required if your company is engaged in activities that may impact the environment. Zoning permits can be obtained from the municipality where your business will be located.

Sanitary permit:

This permit is required if your business produces, stores, or sells food or beverages. A health permit can be obtained from the Ecuadorian Ministry of Health.

Environmental Permit: Required if your company is engaged in activities that may negatively impact the environment. It can be obtained from the Ecuadorian Ministry of the Environment.

In addition to these permits and licenses, you may also need others depending on your specific situation.Failure to comply with the requirements to obtain the necessary licenses and permits can result in various fines, suspension of operations, or even closure of your business.

How can a businessman obtain a residence permit in Ecuador?

There are several ways for businessmen to obtain a residence permit in Ecuador.

Here are some of the most common:

Investment visa:

This type of visa is issued to foreign citizens who invest in the Ecuadorian economy. To obtain an investment visa, you need to invest about $50,000 in real estate, business or government bonds. It provides the right to stay in Ecuador for one year, with the possibility of extension.

Visa for spouses/partners of Ecuadorian citizens:

This type of visa is issued to foreign nationals who are spouses/partners of Ecuadorian citizens. To obtain such a visa, you must provide a marriage/partnership certificate and other documents confirming the relationship. The Spouse/Partner visa allows you to stay in Ecuador for one year, renewable.

Apart from these visas, there are other categories that may be available to businessmen, such as real estate investor visas, retiree visas, and student visas.

Company registration in Ecuador: Tk Deal

Tk Deal is a company that allows foreign businessmen to simplify the process of registering a company in Ecuador.

We will be happy to provide you with a wide range of services:

  • Help in choosing a form of doing business
  • Preparation of documentation
  • Submitting an application for company registration
  • Obtaining permits and licenses
  • Opening a bank account
  • Accounting services
  • Legal services

We will help you avoid bureaucratic delays and reduce the time required to register a company. Our experienced specialists will help you at every stage of the company registration process. Tk Deal simplifies the company registration process by allowing you to complete all the necessary steps online.