Starting a Business - Ecuador

100% foreign equity ownership is allowed in sectors open to private investment without prior authorization or screening. Foreigners receive equal treatment to Ecuadorian nationals; no local partner or national director is legally required.

The Sociedad por Acciones Simplificada (SAS), introduced by the Ley Orgánica de Emprendimiento e Innovación (2020), is the optimal vehicle for foreigners: it permits a single shareholder (individual or legal entity), requires no notary, and can be constituted 100% electronically via the SUPERCIAS portal using an electronic signature (.p12).

There is no statutory minimum paid-in capital for a SAS—incorporation is legally valid from as little as USD $1. Traditional structures (Sociedad Anónima, Cía. Ltda.) require a bank deposit confirming paid-up capital before SUPERCIAS processes the incorporation deed.

Main steps: (1) reserve company name at SUPERCIAS; (2) complete electronic SAS incorporation form and e-sign all documents; (3) SUPERCIAS auto-generates commercial registry inscriptions; (4) obtain RUC (tax ID) from the SRI within 30 days; (5) obtain municipal operating permit (patente). SUPERCIAS incorporation is fee-free and takes 1–2 business days electronically; other modalities take up to 7 business days.

Ecuador's 2008 Constitution reserves strategic sectors—energy, telecommunications, hydrocarbons, water, and biodiversity—for state-owned or state-controlled entities. Private and foreign participation is possible only where specific sectoral laws (Mining Law, Hydrocarbons Law) explicitly delegate it via concession or participation contracts.

A 5% Impuesto a la Salida de Divisas (ISD) applies to capital remitted abroad, raising the cost of profit repatriation. The US State Department's 2025 Investment Climate Statement also notes that inconsistent interpretation of regulations and decentralized investment review across ministries increases practical uncertainty for foreign investors.