Services · Company formation
Company registration in Ecuador: how to start a business
Registering an S.A.S. in Ecuador is free, the capital can be 1 dollar, and the registry takes anything from a couple of hours to a week. The expensive part is something else: 25% profit tax, 15% of profit to employees, 5% on transfers abroad and a manager who needs an Ecuadorian visa. Here are the entity types, steps, fees, taxes and banking.
Is it worth setting up a company in Ecuador
A company in Ecuador can be registered for free, with capital of 1 US dollar and without a notary. That is how the S.A.S. (Sociedad por Acciones Simplificada - simplified stock company) works: the form was introduced by the Entrepreneurship and Innovation Law (Ley Orgánica de Emprendimiento e Innovación), published on 28 February 2020.
Before that, the country was one of the hardest places in the world to start a business. The World Bank's Doing Business 2020 report ranked Ecuador 177th out of 190 for starting a business: 11 procedures and 48.5 days. The company regulator, SCVS, now quotes very different timing: a couple of hours for an electronic filing and seven business days on average for a paper one. By its own 2023 figures, 86 out of every 100 new companies in the country were set up as an S.A.S.
The second argument for Ecuador is the currency. The country has used the US dollar since 2000: accounts, capital, taxes and reporting are all in dollars, so there is no exchange-rate risk.
Then come the costs that rarely make it into the brochures. Profit tax is 25%: lower than 35% in Colombia and 29.5% in Peru, but two and a half times the 10% charged in Paraguay. A company with employees hands them 15% of its profit. The bank withholds a 5% currency outflow tax on most transfers abroad. And since 2025 undistributed profit attracts an advance payment of up to 2.5%.
There is also a limit for the foreign owner. Owning 100% of a company requires no visa and no residence. Running it on a tourist entry stamp does not work: the tax authority and the banks ask a foreign manager for a valid Ecuadorian visa.
Who Ecuador suits. Businesses that operate in the country itself: exports of shrimp, bananas, cocoa and flowers, tourism, real estate, services for the local market. And founders who use the company as a route to residence and later citizenship.
Who it does not suit. Anyone looking for a low-tax company for international trade or a holding: Paraguay and Panama do that job better. For the wider picture see the Ecuador country page.
We will calculate online the cost of registering and running your company for the first year.
Which company type to choose in Ecuador: S.A.S., S.A. or Cía. Ltda.
Three entity types limit the owners' liability to their contribution, and since the 2023 reform all three can be founded by a single person. They differ in capital, place of registration and freedom of the bylaws. The rules are set by the Companies Law (Ley de Compañías).
| Type | What it is | Members | Minimum capital | Where it is registered |
|---|---|---|---|---|
| S.A.S. (Sociedad por Acciones Simplificada) | simplified stock company, bylaws almost entirely up to the owners | 1 or more, individuals and legal entities | none; shares with a par value from 1 dollar, payable within 24 months | Companies Registry at the regulator SCVS |
| S.A. or C.A. (Sociedad Anónima, Compañía Anónima) | classic corporation with freely transferable shares | 1 or more, no upper limit | 800 dollars; at least a quarter paid on incorporation | Commercial Registry of the canton |
| Cía. Ltda. (Compañía de Responsabilidad Limitada) | limited liability company, capital divided into quotas (participaciones) | 1 to 15 | 400 dollars; at least half paid on incorporation, the rest within 12 months | Commercial Registry of the canton |
| Sucursal de compañía extranjera | branch of a foreign company, not a separate legal entity | the parent company | 2,000 dollars of capital assigned to operations in Ecuador | SCVS and the Commercial Registry |
SCVS (Superintendencia de Compañías, Valores y Seguros - Superintendence of Companies, Securities and Insurance) supervises the country's commercial companies. The Commercial Registry (Registro Mercantil) is kept by canton, which is what Ecuador calls its municipal districts.
S.A.S. is the usual choice for a new business. The founding document is signed without a notary, the owners write the management structure themselves, and a sole shareholder may also act as the manager. There are two prohibitions: an S.A.S. cannot engage in financial operations, insurance or securities market activities, and its shares cannot be listed on a stock exchange.
S.A. is needed when a listing, large investors or a regulated activity is planned. Cía. Ltda. fits a family business: selling a quota to an outsider requires the unanimous consent of the other members, and the law does not allow more than 15 members.
The 2023 reform simplified the older forms too. The law published on 15 March 2023 allowed an S.A. and a Cía. Ltda. to be created by a single founder and by a simple written document instead of a notarial deed. A notary is mandatory only when the capital contribution includes assets that must be transferred by deed, such as real estate.
A branch makes sense for a company entering Ecuador under its own name: construction contracts, extraction, state contracts. The parent company is liable for the branch's debts and must keep a representative with broad powers permanently in the country.
Can a foreigner open a company in Ecuador without residency
A foreigner may own 100% of an Ecuadorian company, and a passport is enough for that: the law requires neither a visa nor residence from a shareholder. The state portal gob.ec says in plain terms that an S.A.S. can be founded by Ecuadorians and foreigners alike.
The manager is the harder part. Every company has a legal representative (representante legal) - the one who signs contracts, answers to the tax authority and controls the account. The Companies Law itself sets no nationality requirement: in an S.A.S. the role may be held by an individual or a legal entity, and the appointment is entered in the SCVS registry within 30 days.
The barrier sits elsewhere. The tax authority SRI (Servicio de Rentas Internas - Internal Revenue Service), in its requirements for registering a company, asks a foreign representative for a passport together with a visa. Banco Pichincha, the country's largest bank, says the same in its document list for a company account: a passport with a valid visa. Visa-free entry does not count as a visa.
In practice there are two options.
- A local manager. A citizen or resident of Ecuador is appointed legal representative, and the owner controls the company as shareholder. It is fast, but it means trusting whoever signs the documents and sees the account. The powers are worth limiting in the bylaws.
- Your own visa. The owner obtains temporary residence and manages the company personally. The closest fit for business is the investor visa (visa de residencia temporal de inversionista): it expressly allows commercial activity, legal representation and management positions.
The threshold for the investor visa is 100 SBU (salario básico unificado - the unified basic salary that Ecuador uses to calculate thresholds and fines). In 2026, 1 SBU = 482 dollars, so the investment starts at 48,200 dollars: in shares or quotas of an Ecuadorian company, real estate or a bank deposit of at least 730 days. The application costs 50 dollars, the visa itself 270 dollars, and it is valid for two years.
There is also the digital nomad visa, but it is designed for remote work for clients abroad, not for managing a local company.
If the shareholder is a foreign company, the paperwork grows. The founding document must be accompanied by a certificate of its legal existence in the country of registration and details of its own members; this information is updated every year, usually with an apostille and translation. Such a shareholder must keep an attorney-in-fact (apoderado) in Ecuador who accepts claims and notices.
The company's address is stated down to the canton, while tax registration needs a real address in Ecuador with a supporting document. An S.A.S. has no company secretary and no mandatory board of directors.
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How to register a company in Ecuador: steps and timing
The registry records an S.A.S. in a couple of hours for an electronic filing and in seven business days on average for a paper one - those are the regulator's own figures. For an owner abroad, though, the calendar is set not by the registry but by the preparation: an apostilled power of attorney, electronic signatures and the bank.
An S.A.S. is registered not in the Commercial Registry but directly in the Companies Registry (Registro de Sociedades) at SCVS. There are three filing routes: electronic through the regulator's portal, semi-electronic (electronically signed documents are emailed to the regulator) and paper, with handwritten signatures at an SCVS service centre.
| Step | What happens | Timing |
|---|---|---|
| 1. Power of attorney | A founder abroad issues a power of attorney to a representative in Ecuador. It is apostilled and translated into Spanish | depends on the issuing country; the main cause of delays |
| 2. Electronic signature | For an electronic filing every signatory obtains an Ecuadorian electronic signature (firma electrónica). The SCVS portal accepts the certificate as a file, not on a USB token | depends on the certification provider |
| 3. Name | Name reservation (reserva de denominación) on the SCVS portal | online |
| 4. Documents | Founding document with bylaws, appointment of the legal representative, application for registration, passport copies | depends on how ready the data is |
| 5. Entry in the registry | SCVS enters the company in the Companies Registry. From that entry it exists as a legal entity | a couple of hours for an electronic filing; seven business days on average for a paper one if there are no objections |
| 6. Tax number | The RUC (Registro Único de Contribuyentes - single taxpayer registry) number and the password to the SRI online account are emailed to the legal representative automatically | together with registration |
| 7. Municipality | The company registers with the municipality of its canton and pays the annual business licence fee (patente municipal) | depends on the municipality |
| 8. Account and capital | The company opens a current account; the shareholders pay in the capital within the period set in the bylaws, but no later than 24 months | depends on the bank |
Electronic signatures are issued by accredited certification providers; a foreigner gets one on a passport, and each provider sets its own terms for non-residents. The fully electronic route is built for shareholders who are individuals and for companies supervised by SCVS. If the founder is a foreign company, the documents go in by the semi-electronic or paper route.
An S.A. and a Cía. Ltda. follow a different path: the founding document (simple written or notarial) is entered in the Commercial Registry of the canton, and the company exists from that entry. It may operate only after it has its RUC.
Can it all be done remotely. Founding the company - yes: the shareholder does not need to travel and acts through an attorney-in-fact. The role of legal representative and account signatory is harder: the bank takes a signature card from that person, and from a foreigner a passport with a visa as well. An owner who wants to manage the company personally cannot avoid a trip and a visa.
How much does it cost to open a company in Ecuador
The state charges nothing to register an S.A.S.: 0 dollars for the registry entry and 0 dollars for the tax number. By comparison, an S.A. with the minimum capital of 800 dollars pays the Commercial Registry 29 dollars plus 25 dollars for each manager's appointment.
The Commercial Registry tariff is the same nationwide and is set by resolution 002-NG-DINARDAP-2016 of the National Directorate of Public Data Registries: a fixed 25 dollars plus 0.5% of the amount of the act (on incorporation that is the capital), with a cap of 3,000 dollars for all services on one invoice.
| Payment | Amount in 2026 | Paid to |
|---|---|---|
| Registration of an S.A.S. | 0 dollars | SCVS |
| Registration of an S.A. or Cía. Ltda. | 25 dollars plus 0.5% of capital | Commercial Registry of the canton |
| Entry of a manager's appointment in an S.A. or Cía. Ltda. | 25 dollars per position | Commercial Registry of the canton |
| RUC tax number | 0 dollars | SRI |
| Electronic signature | set by the certification provider | certification provider |
| Municipal business licence fee (patente) | from 10 to 25,000 dollars a year, the rate is set by the municipality | municipality of the canton |
| Share capital | S.A.S. - no minimum; S.A. - 800 dollars; Cía. Ltda. - 400 dollars; branch - 2,000 dollars | stays in the company's account |
| Investor visa for an owner-manager | 50 dollars for the application and 270 dollars for the visa; investment from 48,200 dollars | Ministry of Foreign Affairs and Human Mobility |
Sample calculation. An S.A. with capital of 800 dollars and one manager: 25 dollars fixed fee, 4 dollars on the capital (800 x 0.5%) and 25 dollars for the appointment entry. Total: 54 dollars to the Commercial Registry. The same company set up as an S.A.S. pays the state 0 dollars.
The real budget is made up of other things: a power of attorney with apostille and translation, electronic signatures, a registered address, bookkeeping and, if the owner manages the company personally, a visa. The bank sets a threshold too: Banco Pichincha opens a company current account with a first deposit of 2,000 dollars or more.
Registering a simplified company costs $0, and the costs start afterwards
The law does not stop you from registering a company in Ecuador on your own. But mistakes cost more than the fees: a foreign founder without a local representative and tax number, the wrong company form, missed annual filings with the companies regulator and beneficial owner data filed late, a bank that will not open an account without a clear activity. Murblz specialists choose the form, register the company and its tax number, appoint a representative and support the account opening.
The cost of support depends on the company type, ownership structure and whether you need an account; a manager will calculate it in the chat.
What taxes does a company pay in Ecuador
Out of 100,000 dollars of profit earned by an Ecuadorian company with employees, a non-resident owner takes home 57,375 dollars. The rest goes in three payments in a row: the employees' share, profit tax and dividend tax. An Ecuadorian company is taxed on its worldwide income.
| Payment | Rate in 2026 | What matters |
|---|---|---|
| Profit tax | 25% | 28% if the company has not disclosed its ownership to the tax authority, or if the ownership chain includes a tax haven and the ultimate owner is an Ecuadorian resident |
| Simplified regime RIMPE | sliding scale, marginal rate of 1% to 2% of turnover | for companies with revenue up to 300,000 dollars a year; the tax is charged on revenue, not on profit |
| VAT (IVA) | 15% | 0% on exports, medicines and most agricultural products; 5% on construction materials |
| Dividend tax | 10% to a non-resident | 12% to an Ecuadorian resident; 14% if the company has not reported its ownership; no tax on dividends to an Ecuadorian company |
| Advance payment on undistributed profit | 0% to 2.5% | on prior-year profit not distributed by 31 July; credited against dividend tax |
| Currency outflow tax (ISD) | 5% | on transfers abroad; 2.5% and 0% for certain imports |
| Employee profit sharing | 15% of pre-tax profit | reduces the profit tax base |
| Social security contributions | 12.15% paid by the employer, 9.45% by the employee | to IESS (Instituto Ecuatoriano de Seguridad Social - Ecuadorian Social Security Institute) |
| Municipal tax on assets | 1.5 dollars per 1,000 dollars | on assets less current and contingent liabilities |
Sample calculation. Profit of 100,000 dollars. Employees receive 15%, or 15,000 dollars. On the remaining 85,000 dollars the company pays 25% tax - 21,250 dollars. Of the 63,750 dollars of net profit, 10% is withheld when dividends go to a non-resident, or 6,375 dollars. That leaves 57,375 dollars. In a company with no employees the same calculation gives 67,500 dollars.
RIMPE (Régimen Simplificado para Emprendedores y Negocios Populares - simplified regime for entrepreneurs and small businesses) changes the picture sharply for a small firm. On revenue of 100,000 dollars the tax comes to 1,047.50 dollars, and VAT is filed every six months. But the regime is closed to professional services, construction, agriculture, property rental and most transport.
There is no VAT threshold: a company charges the tax from its first sale. The 15% rate has applied since 1 April 2024 and has not been changed for 2026.
The new dividend rules came with the Social Transparency Law (Ley Orgánica de Transparencia Social), published on 28 August 2025. The same law created the advance payment on undistributed profit. If the company neither distributes nor capitalises that profit within the following two years, the right to credit the advance is lost.
ISD (Impuesto a la Salida de Divisas) is the main reason Ecuador is awkward for transit trade: up to 5% is lost on payments to foreign suppliers. Dividends to a foreign shareholder are exempt from this tax if there are no Ecuadorian residents in the ownership chain.
Ecuador has double tax treaties in force with Russia (applied since 2019) and Belarus (since 2018). Rates for individuals and other details are on the Ecuador taxes page.
What a company must file each year and whether Ecuador has a beneficial owner register
An Ecuadorian company reports its ultimate owners twice a year and to two authorities: to the tax authority in February and to the regulator by the end of April. Hiding a beneficial owner behind a chain of foreign companies does not work - ownership is disclosed down to the last level, and silence is paid for with higher rates of profit tax (28%) and dividend tax (14%).
| Obligation | Deadline | Filed with |
|---|---|---|
| REBEFICS (Reporte de Beneficiarios Finales y de Composición Societaria - report on beneficial owners and ownership structure) | February, with data as at 31 December | SRI |
| Profit tax return | 10 to 28 April, the date depends on the ninth digit of the RUC | SRI |
| Annual financial statements, management report, list of managers, shareholders and beneficial owners | first four months of the year | SCVS |
| VAT and withholding tax returns | monthly; VAT every six months under RIMPE | SRI |
| Contribution to the regulator's budget | by 30 September; 0 dollars for assets up to 100,000 dollars | SCVS |
| Municipal licence fee and tax on assets | annually | municipality of the canton |
| External audit | annually, if assets exceed the threshold | auditor listed in the SCVS register |
Company accounts are kept under International Financial Reporting Standards. There is no separate annual renewal fee for the company, but there is the contribution to the regulator. In 2026 it starts above 100,000 dollars of assets: 0.74 dollars per 1,000 dollars of assets for assets up to 1 million dollars, rising to 0.94 dollars for the largest companies. The law caps the contribution at 1 dollar per 1,000.
Since 2025 the mandatory audit threshold has been counted in basic salaries. Resolution SCVS-INC-DNCDN-2025-0005 of 27 August 2025 set it at 1,366 SBU for an S.A., a Cía. Ltda. and an S.A.S. With the SBU at 482 dollars that is 658,412 dollars of assets. For branches of foreign companies the threshold is lower - 273 SBU, or 131,586 dollars.
Ongoing compliance support is described on the audit and accounts page.
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Bank account and citizens of Russia and Belarus
A company account in Ecuador is opened only after registration and only with a manager whose status is clear: Banco Pichincha, the country's largest bank, asks a foreign legal representative for a passport with a valid visa. That is why a structure with a non-resident owner and a local manager is easier for a bank to read than a foreigner without a visa in every role at once.
A typical package for a current account, based on the same bank's list:
- the company's up-to-date RUC;
- the founding document and bylaws, and the appointments of the legal representatives;
- the list of shareholders disclosed down to individuals;
- an identity card or a passport with a visa for each legal representative;
- a certificate of compliance with obligations to the regulator;
- the bank's forms and a signature card;
- a first deposit of 2,000 dollars or more.
If the shareholders include legal entities, the bank asks for a separate annex about them, and ownership is still disclosed down to individuals. The decision to open the account rests with the bank.
Russia and Belarus. Ecuador has not imposed its own sanctions on these countries, and the Companies Law contains no ownership bans based on citizenship. Neither country is on the list of states whose citizens need a visa for Ecuador: for a trip of up to 90 days none is required. Russia, Belarus and Ecuador are all parties to the Hague Apostille Convention, so documents are accepted with an apostille and a Spanish translation, without consular legalisation.
The difficulties begin at the level of payments. Ecuador's economy runs on the dollar, and international transfers pass through correspondent banks in the United States, which comply with US sanctions. A payment linked to a Russian or Belarusian bank on the sanctions lists will not go through, and the bank examines the origin of funds in detail.
Documents help: proof of source of funds, contracts with counterparties and a clear business model in Ecuador. Bank terms are on the pages for business accounts and personal accounts in Ecuador.
What we do
Murblz handles company registration in Ecuador from the choice of entity type to the first payment from the account.
- we select the form - S.A.S., S.A., Cía. Ltda. or a branch - and calculate taxes in advance under the general regime and under RIMPE; if Ecuador is a poor fit for the task, we say so before work begins;
- we prepare the power of attorney, founding document and bylaws, and arrange translations and apostilles;
- we reserve the name and file the documents with SCVS or the Commercial Registry;
- we help with electronic signatures, the RUC and registration with the municipality;
- we provide a registered address;
- we bring in Murblz accounting and tax specialists: monthly returns, annual reporting to SRI and SCVS, the beneficial owner report;
- we assemble the bank package and support the opening of the current account;
- if the owner wants to manage the company personally, we prepare the documents for the investor visa.
Legal representation - the role of the company's legal representative, acting under a power of attorney, representation before state bodies and in court - is handled by Murblz specialists together with locally licensed partners.
Other countries and the general workflow are in the company formation abroad section and on the service overview page. For life in the country, see the guide to Quito and the article on citizenship by birth in Ecuador. To compare Ecuador with other countries in the region, see company registration in Colombia, Peru and Chile.
See also
Business account · Personal account · Investment property · Country taxes · All country programs
FAQ
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