Opening a company in Ecuador: locals, foreigners, freelancers and digital nomads

At a glance: S.A.S. with no minimum capital, created online at the Superintendencia de Compañías free of charge in 1 to 3 days, 25 percent corporate tax, 15 percent IVA with no threshold (RIMPE regime for small businesses), dollar economy, digital nomad visa yes (about three basic salaries a month). Legal forms. Sole trader (persona natural) with a tax number (RUC) and unlimited liability. Simplified stock company (Sociedad por Acciones Simplificada, S.A.S.): one or more shareholders, no minimum capital, private electronic document without a notary, since 2020 the default form. Limited company (Compañía de Responsabilidad Limitada, Cía. Ltda.): 2 to 15 partners, minimum capital USD 400 at least half paid, notarial deed. Stock corporation (Sociedad Anónima, S.A.): minimum USD 800, a quarter paid. Registration. The S.A.S. is filed on the Superintendencia de Compañías portal with electronic signatures, no fee, approval in 1 to 3 business days, then entry in the Registro Mercantil. Cía. Ltda. and S.A. need a notarial deed (about USD 150 to 400) and a Registro Mercantil fee tiered by capital. Then the RUC at the tax authority (SRI, free, online) and the municipal patent (patente municipal, USD 10 to 700). Total excluding capital about USD 50 to 300 (about 45 to 260 euros) for an S.A.S. alone, USD 500 to 1,500 with a lawyer; one to three weeks. Taxes 2026. Corporate income tax 25 percent (22 for micro and small companies, 28 where shareholders sit in tax havens or owners are undisclosed); creditable advance payment of 0 to 2.5 percent on undistributed profits. Dividends: 10 percent withholding for non-residents, up to 12 percent for resident individuals. IVA 15 percent (0 on basics and exports), no threshold. Capital outflow tax (ISD) up to 5 percent. Personal income tax up to 37 percent above USD 109,956; residents are taxed on worldwide income, foreign income already taxed abroad exempt except from tax havens. Freelancers and the self-employed. Register a RUC at the SRI online and issue electronic invoices. RIMPE regimes: popular business (negocio popular) with gross income up to USD 20,000 a year pays a flat USD 0 to 60 of income tax a year and charges no IVA; entrepreneur (emprendedor) with income up to USD 300,000 pays 0 to 2 percent of gross income and files IVA half-yearly; regulated professions use the general regime. Social security (IESS) is voluntary for the self-employed: 17.6 percent of a declared income not below the basic salary, about USD 85 a month (about 74 euros). Foreigners. 100 percent foreign ownership except media, private security, parts of fishing and border-zone land; the legal representative must be domiciled in Ecuador; foreign shareholders sign by apostilled power of attorney and get an Ecuadorian tax number. Investor residence (visa de residencia temporal de inversionista): at least 100 basic salaries (about USD 48,200 in 2026, about 42,000 euros) in company capital, property or a bank certificate, two years then permanent residence; about 450 dollars in fees. Incorporation works remotely; a bank account needs the RUC and usually the representative in person, two to six weeks. Branch of a foreign company. A branch (sucursal) is domiciled by resolution of the Superintendencia de Compañías: apostilled and translated articles and a resolution assigning capital of at least USD 2,000 and appointing a general attorney-in-fact (apoderado general) resident in Ecuador, entered in the Registro Mercantil, then the RUC. Taxed at 22 to 28 percent like a local company; remitted profits are taxed like dividends to a non-resident. An S.A.S. subsidiary is cheaper and usual. Digital nomads. Yes: the nómada digital visa (visa de residencia temporal para rentista de trabajo remoto) for employees or freelancers paid by companies outside Ecuador with monthly income of at least three basic salaries (about USD 1,450 in 2026, about 1,250 euros), health insurance and a clean record; two years, renewable, dependants as beneficiaries (amparo); about 450 dollars in fees. Tax residence after 183 days in a 12-month period. Changed recently. IVA raised from 12 to 15 percent (April 2024); capital outflow tax back to 5 percent (2024); advance payment on undistributed profits under the 2025 urgent laws; basic salary about USD 482 (January 2026). Figures checked October 2026 from the Superintendencia de Compañías, the SRI, the Ministerio de Relaciones Exteriores y Movilidad Humana, PwC Worldwide Tax Summaries and Ecuadorian law-firm 2026 pages; thresholds and fees change yearly. Confirm with a licensed adviser in Ecuador before you file.