Steps to Incorporate a Company in Ecuador: Sociedad De Responsabilidad Limitada
There are some steps on how to incorporate a company in Ecuador that you have to follow so that you can enter the Ecuadorian business world comfortably and without any hassles. Therefore, these steps will ensure that you are successful in setting up a profitable business in Ecuador.
But before we go to the steps, you need to know what kind of legal structure you will adopt for your Ecuadorian business. The two most common legal structures are:
- Limited Liability Company (LLC) – If your company has a set of 2 to 15 members and a limited number of shares that cannot be listed on the Stock Exchange, then select this structure for your company.
- Anonymous Company – If you decide to have any number of members in your company and an unlimited amount of shares on the Stock Exchange, select this legal structure.
Most foreign companies set up in Ecuador are LLC’s, which is also known in Ecuador as Sociedad de Responsabilidad Limitada. Below are the steps to be followed while incorporating a company in Ecuador.
These Are the Steps to Follow:
First, You Select and Reserve a Name.
The Superintendence of Companies lists the names of all the companies in Ecuador. You must select a name that is not in the list.
Second, You Prepare Statutes.
Get a good lawyer to write up your social contract and validate it for you.
Next, You Open a “Capital Integration Account”.
This account is essential if you want to incorporate a company in Ecuador. Open a bank account with any bank.
Then, You Make a Public Deed.
Find a Public Notary, take the reserved name, account details and statutes papers and float out a public deed.
After That, Get an Approved Statute.
Take the public deed to the Superintendence of Companies and must approve by the authorities.
Then, You Publish in a Newspaper.
Get your company’s name and details published in a public newspaper listed with the Superintendence of Companies.
You Obtain Permits.
Pay a patent fee to the municipal corporation and in turn, acquire a certificate of fulfilment of obligations.
You Register the Company
The Mercantile Registry is the place you should visit next, to register your incorporate company.
Then, You Hold a General Shareholders Meeting.
You must host the first meeting according to what statutes say. The meeting must happen to appoint the representatives of your company.
You Enable the Documents.
The Superintendence of Companies will release your documents so that you can open the RUC of the company.
You Register the Members’ Names.
Send the names of the representatives that you appoint to the Mercantile Registry.
You Get the RUC.
The Unique Taxpayers Registry (RUC) can be obtained from the Internal Revenue Service (SRI).
Lastly, You Submit the Letter to the Bank.
Along with the RUC, the Superintendence of Companies will send you a letter addressed to your bank, containing your details and account details. Then, submit the letter to the bank.
Once you have finished these 13 steps, you can officially start your business. You have incorporated your company. Now you can hire employees in Ecuador and grow and manage your company.
Do you have any questions about how to create a company in Ecuador? Contact us now.
Our team of experts have the knowledge and expertise to guide you throughout the company formation/incorporation process.