New company setup guidelines were established after introducing Supplement 269 thus amending Ecuador’s Companies Act. This amendment will make requirements for the creation and development of companies more flexible.
The following updates are highlighted:
- Corporations and limited liability companies may be incorporated by a single member unilateral action.
- Limited liability company shareholding will be freely transferable between members and may be carried out privately.
- Limited liability companies and corporations may be incorporated either by public deed or by means of a private document, which shall not be subject to any notary public legalization.
With these changes, the optimization in company setups is expected as well as promoting corporate governance together with the participation of Ecuador’s Corporate Oversight.