Simplified Shares Company (SAS) In Ecuador: A New Opportunity

• Published date: 08 August 2023
• Subject Matter: Corporate/Commercial Law, Government, Public Sector, Inward/ Foreign Investment, Corporate and Company Law, Corporate Governance, Shareholders
• Law Firm: Biz Latin Hub Group
• Author: Biz Latin Hub Group

Ecuador has shown the world that it is open for investment by introducing a new legal entity, the Simplified Shares Company, or SAS (Sociedad de Acciones Simplificadas). Before diving into the details, let's take a deeper look at Ecuardor's economy.

Ecuador is the eighth-largest economy in Latin America, with a gross domestic product (GDP) of $106 million in 2021 (all figures in USD). It's also one of the main recipients of foreign direct investment (FDI) in the region, with inflows of over $630 million that same year, a sharp decrease in 2020 which saw FDI numbers reach $1 billion!

Ecuador's capital Quito is seen as a startup hub in the region and offers skilled labor at competitive rates. Additionally, Ecuador is rich in hydrocarbon reserves, with oil drilling responsible for 40% of the nation's export income. The services sector has become a key source of employment for the economy.

Ecuador's capital Quito is seen as a startup hub in the region and offers skilled labor at competitive rates. Additionally, Ecuador is rich in hydrocarbon reserves, with oil drilling responsible for 40% of the nation's export income. The services sector has become a key source of employment for the economy.

The law also launched the National Council for Entrepreneurship and Innovation to support Ecuadorian commercial development, education, and culture.

The law also launched the National Council for Entrepreneurship and Innovation to support Ecuadorian commercial development, education, and culture.

The creation of SAS in Ecuador has important advantages

What are Simplified Stock Companies and how do you form a SAS in Ecuador?

A Simplified Stock Company (SAS) is a company where shareholders are only liable for the amount of money they invested in the company. Shareholders can choose to waive this limitation to insure with their own assets any operation of this type of entity.

It's important to mention that the SAS in Ecuador cannot be listed on the stock exchange. To form a SAS in Ecuador, you'll need to register private documents in a new Registry of Companies by the Superintendence of Companies. Additionally, SAS corporations in Ecuador don't have a minimum capital requirement.

This type of legal entity in Ecuador cannot carry out activities relating to the financial, stock market, insurance or any of the other industries that have special treatment under Ecuadorian law.

Market overview in Ecuador. SAS Ecuador.

What are the benefits of a SAS ...