Corporations
Under
Ecuadorian law, the corporation is the most flexible business
structure. As in most countries, the corporation offers
distinct advantages over other structures. Specifically,
the Ecuadorian corporation:
1)
Limits shareholders' liability to the amount invested.
2) Allows shareholders to negotiate their stock holdings,
without restrictions.
3) Permits the firing of personnel at any time.
4) Ensures the continuity of the business, regardless of
death or changes in management and/or ownership.
The
documents, which must be submitted to the Superintendency
of Companies in order to create a corporation, are the following:
1)A deed of incorporation; 2)The company bylaws; and 3)Documents
that prove the payment of the applicable taxes.
A
corporation must state its amount of capital in its bylaws.
A company's capital is calculated by multiplying the quantity
of shares by their par value. Capital may consist of authorized
capital, as stated in the bylaws; subscribed capital, which
the stockholders are required to pay in; or paid-in capital.
USD 800 is the minimum amount of capital allowed for creating
a corporation in Ecuador.
Once
incorporated, public companies must file an annual return
with the Superintendency of Companies. The annual return
must contain financial statements and other relevant information,
such as reports filed by the legal representative, the corporate
comptroller, and the company's external auditors. Public
companies must also publish their June and December financial
statements in a local newspaper.
