Although Ecuador is ranked as a top retirement country, this high approval rating does not apply for doing business. Although there are some great business opportunities, you will not find them easy to capitalize on.
If you intend to do business in Ecuador, then it is important to realize up front that it probably will not be as easy as you are accustomed to. In the World Banks “Ease of Doing Business Index”, Ecuador comes in at #130 out of 183 countries. As for ease of starting a new business, it ranks at #158. So be prepared to experience significant frustrations and extra delay costs when you start a new business
Below is the data for 2014.
If you come from a country that ranks in the top 20, then you will definitely feel some frustrations. For example, it may take you a month to get a company formed, be registered for tax and have a bank account, whereas it may have only taken you a day in your own country. If you need a more sophisticated structure like a Trust, it may take several months. And if your attorney says that it will take a lot less, don’t be disappointed if his estimate turns out to be grossly wrong.
The level of corruption in Ecuador may also make it difficult to get anything done on time. Delays may be designed to extract money from you.
Again, if you are from a low corruption country then you will find that the opposite in Ecuador will slow down the business processes substantially.
What you need to think about when starting a business in Ecuador?
There are many bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Ecuador. The Doing Business project, examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy’s per-capita gross national income.
This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 189 economies. The most recent round of data collection was completed in June 2013.
Every year, the U.S. Embassy in Ecuador prepares the “Doing Business in Ecuador – A Country Commercial Guide” specifically designed for U.S. companies interested in selling to Ecuador. The Country Commercial Guide (CCG) provides a useful starting point for U.S. businesses pursuing export and investment opportunities in Ecuador. The Guide can serve as a foundation for the company’s research and business plans.
The CCG includes Ecuador’s economic trends and outlook, political environment, trade regulations, customs & standards, business travel, and economic and trade statistics. It also provides information on marketing U.S. products and services in Ecuador, leading Ecuadorian industry sectors for U.S. export and investment, and trade and project financing for U.S. exporters.
Also check out Export and Invest in Ecuador.