The Ecuadorian Civil Code classifies societies in two categories: civil and commercial.

Commercial societies or companies are formed to conduct commercial activities and are governed by the Law of Companies and the Superntendence of Companies, Securities and Insurance.

Below, the most common forms of Companies and their requirement:

Corporation

Sociedad Anonima stands for anonymous company, corporation, partnership or Share Company. A Corporation is an entity based in its capital, not grounded on the relationship between the shareholders. Shares are freely transferable without any limitation.Shareholders are reliable only for the amount of their shares.

Requirements:

  • Minimum number of shareholders (2)
  • Minimum Capital : USD 800
  • Public deed of incorporation
  • Statutes
  • Visa for foreigners

Limited Liability Company

Also known as private limited company, formed by two or more partners. Partner’s shares cannot be transferred to third parties without the approval of all other partners. An LLC is not a corporation; it is a company that provides limited liability to its owners.

Requirements:

  • Minimum number of shareholders (2)
  • Maximum number of shareholders (15)
  • Minimum Capital : USD 400
  • Public deed of incorporation
  • Statutes
  • Visa for foreigners

Wholly Owned Subsidiary

A Wholly Owned Subsidiary is a company whose common stock is owned by another company. In Ecuador, the subsidiary needs to be undergone in the Ecuadorean territory and permanently hold at least one representative with ample authority to perform all legal acts and acquire an operating permit from the Superintendence of Companies.

Requirements:

  • Minimum Capital :: USD $ 2.000,00
  • Amendments of articles of association
  • Incorporation of company and Certificate of legal existence/good standing
  • Legal representative with ample authority, Ecuadorean national, or a foreigner with Ecuadorean residence.