Doing business in Ecuador

Ecuador is a unitary republic with a codified civil-law system. Key authorities for an incoming business are the Servicio de Rentas Internas (tax), the Superintendencia de Compañías, Valores y Seguros (companies and securities), the Superintendencia de Bancos (banking), SENAE (customs), SENADI (intellectual property), the Superintendencia de Competencia Económica (competition), the Superintendencia de Protección de Datos Personales (data protection), the Ministry of Labour and the IESS (social security).

Key facts

Corporate income tax

25% standard rate (as at mid-2026)

VAT

15% standard rate (0% for listed items)

Currency

US dollar; no general exchange controls

Payments abroad

Currency outflow tax (ISD) of 5%, with exemptions

Main entity forms

S.A., limited liability company or SAS

Employee profit share

15% of annual net profit

New York Convention

Party since 1962

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Foreign investors in Ecuador usually set up a corporation (sociedad anónima), a limited liability company or, since 2020, a simplified joint stock company (SAS). Companies are supervised by the Superintendencia de Compañías, Valores y Seguros (SCVS), and incorporation can be done electronically. A foreign company can instead open a branch, which must appoint a permanent legal representative in Ecuador.

Key facts

• Choose between an S.A., a limited liability company and the newer SAS, which is the simplest option.

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• Incorporation runs electronically through the SCVS, which also supervises companies after formation.

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• A branch is possible but needs a permanent legal representative in Ecuador.

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Who handles this in EcuadorCorporate & Entity ServicesGovernment & Regulatory AffairsLegal & Contracting

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Key facts

• Plan on 25% corporate tax, and check whether shareholder location, ownership disclosure or incentive regimes change the rate.

• VAT is 15%, with 0% for listed items; imported digital services are within scope.

• Model the 5% currency outflow tax (ISD) on payments abroad, including dividends, royalties and services, and check whether exemptions for dividends or foreign loans apply.

Who handles this in EcuadorTax & International Structuring · Mauro Tejada RamonAccounting, Reporting & Statutory Compliance · Pablo Andres GuerraAudit & Assurance · Pablo Andres Guerra

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Key facts

• Budget for the thirteenth salary (by 24 December), the fourteenth salary (by 15 March or 15 August depending on region) and the 15% employee profit share on top of base pay.

• Social security is 12.15% for the employer and 9.45% for the employee, paid to the IESS.

Who handles this in EcuadorEmployment, Payroll & MobilityLegal & Contracting

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Special economic development zones offer further benefits. Strategic sectors such as hydrocarbons, mining and telecommunications are reserved to the state, with private participation through concessions or delegation. Public procurement runs through the SERCOP system.

Key facts

• COPCI sets the investment framework, and an investment agreement with the government can reduce the corporate tax rate by up to 5 points.

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• ZEDEs offer tax and customs benefits for qualifying projects.

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• Projects in strategic sectors require concessions or delegation from the state.

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• Government contracts are tendered through SERCOP.

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Who handles this in EcuadorGovernment & Regulatory AffairsCommercial Intelligence & Market Research

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Ecuador uses the US dollar as its official currency, which removes exchange-rate risk for dollar-based investors. There are no exchange controls in the usual sense, but the currency outflow tax (ISD) makes money leaving the country more expensive. Banks are supervised by the Superintendencia de Bancos and apply anti-money laundering rules overseen by the UAFE.

Key facts

• Dollarisation means no currency conversion for dollar-based groups.

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• Profits can be repatriated, but the ISD on outgoing payments must be built into cash planning.

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Who handles this in EcuadorBanking & Capital AccessPayments, Foreign Exchange & SettlementRisk, Compliance & Financial Integrity

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Customs is run by SENAE under COPCI, using the ECUAPASS electronic system. Ecuador is a member of the Andean Community and a party to the trade agreement with the European Union, and it has a trade agreement with China. Products are subject to technical regulations and, for food and medicines, sanitary registration.

Key facts

• Andean Community membership and the trade agreement with the EU, in place since 2017, provide preferential access for qualifying goods.

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• Check ARCSA sanitary registration and INEN technical regulations before shipping regulated products.

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Who handles this in EcuadorTrade, Customs & Supply Chain

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Key facts

• Data protection delegates are registered with the Superintendencia de Protección de Datos Personales (SPDP).

• Check whether a data protection officer is required; appointments by obligated bodies had to be registered with the regulator by 31 December 2025.

Who handles this in EcuadorTechnology, Data & CyberLegal & Contracting

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Intellectual property is administered by SENADI, the national IP office, under the Código Ingenios and Andean Community Decision 486. Ecuador is a party to the Paris Convention and the PCT.

Key facts

• SENADI is Ecuador's national intellectual property office, so filings and searches start there.

• The national code operates alongside the common Andean regime.

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• Patent applicants can enter via the PCT, and trademarks last 10 years.

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Who handles this in EcuadorIntellectual Property & Brand ProtectionLegal & Contracting

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Securities and listed companies are supervised by the SCVS. Insolvency and restructuring rules have been reformed in recent years and should be checked for each case.

Key facts

• Notify qualifying deals to the SCE within eight days of the agreement and wait for authorisation, which is tacit after 60 days from a complete filing.

• The competition law also covers abuse of market power and restrictive agreements.

• Listed company deals are supervised by the SCVS.

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Who handles this in EcuadorTransactions & DealsGovernment & Regulatory AffairsLegal & Contracting

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Companies can be criminally liable under the Comprehensive Organic Criminal Code for offences such as bribery and money laundering. Anti-money laundering reporting duties apply to banks and designated businesses. Security conditions are a material planning issue, following the declaration of an internal armed conflict against organised crime groups in 2024.

Key facts

• Corporate criminal liability under the COIP makes a compliance programme important.

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• Ecuador participates in the UN anti-corruption framework.

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• Build security risk assessment and insurance into operational planning.

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Who handles this in EcuadorRisk, Compliance & Financial IntegrityInsurance & Risk Transfer

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Civil and commercial proceedings are governed by the General Organic Code of Processes (COGEP), and arbitration and mediation by the Arbitration and Mediation Law. Ecuador is a party to the New York Convention. The Constitution bars the state from treaties submitting contractual or commercial disputes with private parties to international arbitration, a bar voters declined to lift in April 2024, which matters for investor-state planning.

Key facts

• Commercial litigation follows the COGEP, and arbitration and mediation are available under the Arbitration and Mediation Law.

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• Foreign awards are enforceable under the New York Convention, which Ecuador applies to awards from other contracting states in commercial matters.

• Disputes with the state face constitutional limits on international arbitration, even though the ICSID Convention has applied to Ecuador again since September 2021.

• The Quito and Guayaquil chambers of commerce run the main arbitration centres.

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Who handles this in EcuadorDisputes & ResolutionLegal & Contracting