The Government of Ecuador continues its ambitious and aggressive plan to streamline the constitution of new companies, innovating concepts, improving business vision at the government level, avoiding unnecessary and costly procedures, eliminating delays, and using cutting-edge technology to strengthen the efficiency of the process. . In March 2014, the approval in the Assembly of the Law to Strengthen the Corporate and Stock Market sector, simplified the procedures to establish a company in the country.
With this Law, outdated procedures are modified, and the time for businessmen to establish a business in Ecuador is substantially expedited, which thanks to this new Law, was summarized in two days. The diligence, before the law to strengthen the Corporate and Stock Market Sector, took four months.
The new standard establishes two essential changes:
1) that the constitution of the company is done using a computer system, and
2) that the verification and control analyzes for the start of operations are now carried out after the opening of the business.
The president of Ecuador, Economist Rafael Correa, explains that the company or businessman tells the truth when entering the information to officially register the company, so the Government simply performs a subsequent control. This opened a new paradigm in the process of creating companies, since before the State had to check the information at the time of application, and this resulted in delays and incessant requests for documents – opportunities that generated loss of time and corruption – before proceed to registration. Similarly, with the new Law, if inconsistencies are detected, very strong legal sanctions are applied, alternatives that did not exist before. This new comprehensive method promoted a much more efficient system,
These changes receive a higher level of efficiency since September 15, 2014, when the Superintendency of Companies and Securities officially began, in Quito and Guayaquil, the pilot plan to establish companies electronically. The online plan allows for a greater agility to start formal businesses, with more access to work by citizens, with a strong reduction in costs, and with total transparency to collect taxes, through the use of the web portal: www.supercias.gob.ec, that is, the Electronic Constitution of Companies Portal. The online plan allows greater agility to start formal businesses, with more access to work by citizens, with a strong reduction in costs, and with total transparency to collect taxes, through the use of the web portal: www. supercias.gob.ec,
This process, which runs until November 20, places the country in a much more competitive position among other countries in the region and in the world, to undertake licit commercial activities. The agility in the processes has not sacrificed the control by the Superintendency of Companies and Values. The innovative technological tool provides an adequate record of processes and facilitates the subsequent control of all corporate acts. The institution develops this process jointly with the Internal Revenue Service (SRI), the National Directorate of Public Data Registration, the Judicial Council, Banco del Pacífico and with the collaboration of the Coordinating Ministry of Production, Employment and Competitiveness. The Commercial Registries of Quito and Guayaquil and 20 notaries (10 from Guayaquil and 10 from Quito) also participate.
The Superintendency of Companies and Securities currently offers its users 16 online processes. He has been receiving balances through the web for two years, he attends denomination reserves electronically, as well as the transfers of shares and participations, and the updating of company data.
To learn the steps to follow to create a company in Ecuador,visit us HERE.
Learning Spanish before you go to Ecuador is essential. If you listen to people that say you’ll be fine with your English, they are wrong. You must do your best to be able to converse with the local people, it’s the respectable thing to do. Go and visit my buddy Olly Richards at IWillTeachYouALanguage and sign up for his Spanish Uncovered class, you won’t be disappointed.
Here are some additional articles from Ecuador that I’m pretty sure you will love!
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