Eternity Law International News Company registration in Ecuador

Company registration in Ecuador

Published:
December 22, 2020

Ecuador is often used by foreign investors to optimize the tax system. In this country, the rates for tax duties are quite low: VAT is 12%, and income tax is maximum 30% – which is the lower threshold in Sweden.

However, Ecuador is not offshore. The fiscal field of this jurisdiction is maximally favorable for foreign investors, although it is not in great demand among businessmen. Entrepreneurs rarely choose Ecuador, since the income of the population there is relatively small, which reduces the prestige and respectability of the jurisdiction. Regardless of the legal form and industry in which the company operates, all enterprises pay an income tax of 25%.

Business forms in Ecuador

You can register a company in Ecuadorian jurisdiction in one of the following legal options:

  • LTD. The company must contribute 50% of the capital at the time of registration of the company with the relevant authorities. The minimum amount for starting capital is $ 400. Since the authorities of Ecuador have abolished the local currency, the US dollar is now in circulation.
  • Joint venture. Such a commercial structure is established as a partnership between non-residents and residents. The advantage of this option is that such a firm has many tax privileges, and investors do not risk anything when investing their capital in starting a business. Among the shortcomings, one can name the lack of competent businessmen in a particular industry, since only about 10 million people from the entire population of Ecuador are involved in economic activities.
  • Collective organization. Two founders can create such a company. This one differs from the previous version in that there may be no resident among the founders.
  • Individual entrepreneurship. This form allows the founder of the company to be at the same time its employee. The advantage of this option is that the Ecuadorian jurisdiction provides for a tax deduction if about 15 percent of the profit is distributed among the company’s employees. Thus, for the entrepreneur, the fiscal costs are significantly reduced.
  • Branch of a foreign company. The disadvantage of this form is the mandatory requirement for the minimum amount of capital – $ 2,000. Opening an LLC is cheaper.
  • Simple limited partnership. Founders can have different statuses. Some of them impose personal liability for the debts of the enterprise, while others – limited.
  • Holding institutions and corporations. These are groups of enterprises and individual companies whose securities are put up for free sale.

Establishing a company in Ecuador is quite promising. This is one of the shortest routes to the global market.

If you need to register a company in Ecuador, our specialists will help you register a company quickly and efficiently. Also, you can buy a ready-made company in Ecuador. Write to us in the CRM form and we will help you register a company.

Eternity Law International specialists will provide you with qualified advice on the acquisition of an offshore company, opening a bank account in any jurisdiction, as well as further support of your company’s activities at any stage.

We offer ready-made European and offshore companies. It takes 2 days to reissue documents for new owners.

If you have any questions or need advice on registering or buying a company, call us at the phone numbers listed on the website, or write to us in the CRM form located at the bottom of the page. Our specialists will answer you online.

You could be interested

Company registration in Denmark

Denmark is one of the most highly developed European countries. Therefore, it is attractive to foreign capital owners in terms of profitable investment opportunities. Although Denmark is not an offshore zone in the sense that we are used to, this jurisdiction offers foreign firms some privileges in terms of paying taxes. Organizational and legal forms...

OECD - Cook Islands

On 28.10.2016, in the OECD headquarters in Paris, Mr. Andrew Haig who is Cook Islands Internal Tax Collector, signed the multilateral convention as for mutual administrative assistance in tax matters. As of today, this Convention is the most powerful instrument for international tax cooperation. It provides all forms of administrative assistance in tax matters such...

Permanent resident card in Europe

Permanent resident card in Europe is always a topical question. Each European state has its own characteristics: the economic situation, geographical location, attitude towards emigrants, and so on. When choosing a country to apply for a permanent resident card, all these factors must be taken into account. What is also important to remember is that...

Grenada Citizenship for Investments

Jurisdiction suggests persons made great contributions to country’s economical field to get citizenship-rights and enjoy all privileges residents possess. Obtain citizenship in Grenada may be performed as a token of gratitude for endowments to local growth. Privileges offshore citizenship in Grenada possesses for persons who decide to contribute to country’s economical sphere. Grenada citizenship by...

ISO 14064 Verification

Floods, droughts, record temperatures – backdrop of all this, solving problem of climate changes has become one of the most pressing problems in the world. These events are one of the most important obstacles that countries, governments, businesses and humankind face in a resilient world. Thus, several applications for monitoring and mitigating fluctuations were put...

Regulation of ICO in Switzerland

February 16, 2018 The Financial Markets Supervision Service of Switzerland (FINMA) has published a survey and legal recommendations for the organizers of the ICO. In particular, the Service rightly points out that the law and regulation of the financial market can not be applicable to all ICOs without exception, therefore the need for compliance with...
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

Washington

1629 K St. Suite 300 N.W.

Vilnius

Gediminas Avenue, 44A

Tallinn

Kesklinna linnaosa, Tuukri 19

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Riga

Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard

Sydney

20 Martin Place

Porto

2609 Avenida da Boavista
Calls are made only from Portugal

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7