Setting Up an Export Company in Ecuador

Start up an export company in Ecuador and be one of its economy’s front-runners

Ecuador’s economy is not only improving; it is also progressing. In fact, it is now opening up to the world market. Several instances include signing a Trade Agreement with the European Union, joining the Pacific Alliance, and becoming a part of bilateral investment treaties. Eventually, these actions will attract foreign investment, which makes establishing an export company in Ecuador a definite possibility.

Building a company is generally stressful and financially draining. Basically, you need three things: Preparation, Coordination, and Discipline. These guidelines below will outline everything you need in setting up an export company in Ecuador, from start to finish.

 

Ways You Can Establish an Export Company in Ecuador

There are five types of companies that you can possibly establish in Ecuador. The most prevalent ones are Limited Liability Companies (LLC) and Public Companies. At present, there are two ways to integrate a company in Ecuador: Traditional and Online.

In the traditional manner, you, along with other incorporators, would need to do the following:

1. Draft by laws
2. Setup the company in a way that there is 1 Director, and at least 2 shareholders for Public Companies and at least 3 shareholders for LLC.
3. Submit drafted regulations to the Superintendence of Companies for approval.
4. Register your company with the Internal Revenue Service and deposit the minimum share capital set by law
5. Obtain the tax identification number of your company
6. Open a bank account
7. Pay for the Single License for Economic Activities in the municipality where the company is domiciled.

 
This process is lengthier, given the greater levels of bureaucracy. However, it allows for a wider social purpose.

Due to the advent of digital technology, online processes have become possible. In other words, you can access virtually everything without going out of your physical office. In general, you need to fill out a form which you can find on the superintendence of companies’ website.

Fill out the necessary details such as company name and any vital information relative to the company shareholders. Once the notary and the Mercantile Registry have approved the deeds, they will be the ones responsible for registering the company. The Internal Revenue Service (‘Servicio de Rentas Internas del Ecuador’ – IRS) will then grant the company tax identification number (referred to as ‘RUC’).

 

Steps to Register an Export Company in Ecuador

Once your company has been fully incorporated in Ecuador, you have to register the company as an exporter. See below the steps to register as an export company in Ecuador:

1. Make sure that your companies’ activities are acknowledged as “exportation”.
2. Acquire the digital signature certificate, also known as TOKEN, granted by either the Central Bank or Security Data
3. Register as an exporter in Ecuapass, an Ecuadorian customs system that allows Foreign Trade Operators to perform all their import and export customs operations. In signing up, you need to do the following:
   • Update your information in the database
   • Create user and password
   • Accept use policies
4. Put electronic signature. It is advisable that the Director has to affix his own signature.

 
The above mentioned are just the general requirements to register as an export company. However, depending on the type of product to be exported, you may be subject to additional obligations that require fulfillment.

 

Want More Information on Exporting in Ecuador?

Ecuador has one of the most desirable Latin American Jurisdictions for exportation. Having said that, business plans can still be exhausting and sometimes confusing to follow through. To get you on the right track, it is prudent to work with a local partner. Get in touch with Biz Latin Hub – our team of industry experts can ensure that you meet your business objectives. Contact Ecuador corporate service provider for more information.