Ecuador Corporations


This week Dr. Andres Cordova shares information about how to incorporate in Ecuador.

andres cordova

Dr. Andres Cordova

SHOULD YOU INCORPORATE A COMPANY IN ECUADOR?

While the process has been streamlined in recent years, incorporating a company in Ecuador remains cumbersome. Unless several reasons to incorporate a company in Ecuador stack up, I usually advise against doing so. Mainly, because the incorporation of a company needs to be part of setting the wheels in motion of a well thought out business plan where the costs and responsibilities are properly assessed and are far outweighed by the pluses.

In some cases, after discussing matters with clients, we come to the conclusion that incorporating a company is not necessary, at least not in an early stage.

Now, there are several and quite compelling reasons to incorporate a company in Ecuador. Here’s a rundown of the main ones, in no particular order:

PRESENCE

If you are ready to set up or launch an Ecuador based or related business, incorporating a company certainly gives you presence. You can have a unique name registered to for the company with which you can project an image. People tend to remember business names, or associate them with products and services, and will be drawn to the fact that a company exists in support of the endeavor you are pushing forward.

Warranted or not, companies are deemed to have stronger roots in any given business and people, other corporations and institutions can be more inclined to doing business with it.

ACCOUNTING AND ACCOUNTABILITY

Another important factor is that in any given company, accounting and accountability come with the territory in a rather strong way. It allows proper control of cash flow, assessment of the status of affairs and planning. It allows reporting to authorities and transparency with shareholders, lenders and investors. It allows for tax efficiency where it is possible to offset taxes against expenditures.

It allows control over management where statutory guidelines and shareholder’s decisions must followed.

SCALABILITY

This is one of the most consequential purposes of setting up a company. A company is a formal, supervised structure with name, domicile, statutes, management and purpose to which loans and investment funds can be sourced. In the latter case, investors can participate in the company through the issuance of shares.

The company can in time seek the services of the stock market for capitalization and growth. Having a company helps with franchises, transfer of technology, getting awarded contracts and more.

Shareholders have lawful and statutory rights which can be protected with the assistance of the Superintendence of Companies.

CAPITAL & SHARES

All capital contributions to a company need to be properly processed and accounted for and can either generate a debt or obligation towards the contributor or generate the issuance of shares and growth.

The capital of the company will be a statement of the monetary contributions to it and will reflect the growth of the company, making it easier to further expand upon gained ground.

Shares get recorded within the company and reported to authorities.

TAX EFFICIENCY

Natural persons pay taxes at up to 35% in Ecuador while corporations pay up to 25%. This is a rather strong argument in favor of setting up a company. Furthermore, a company provides one of the best platforms for adequately offsetting taxes against operation expenditures and obligations.

Depending on the line of business and plan, there are important tax holidays available and having a company makes a stronger case to attain them.

ASSET PROTECTION AND LIMITATION OF LIABILITIES

A company can help with asset protection and with the limitation of liabilities. Except in cases of proven fraud, shareholders would not be personally liable with assets outside the company for obligations of the company.

TRANSFERABILITY

Partial or full ownership of a company can be easily transferred. This is good not only as it permits the welcoming of new shareholders (including investors) and “cashing” out, but also as it can make end-of life planning and arrangements easier, providing surer outcomes.

…………………

This list is not meant to be comprehensive. It’s a brief overview of some elements that can add up in a decision to set up a company in Ecuador.

Setting up a company can cost between $1,000 and $2,000 at minimum and take up several weeks. It’s not a complex process but it can get a bit cumbersome. Once the company is incorporated it will need to file a tax report each month (for VAT) and file yearly reports to the Superintendence of Companies and the local IRS. While these reports can be quick and painless, if you set up a company you are not using, then you’ll have regrets. Smile.

The company will pay an operation tax to the respective Municipal jurisdiction, based on the operating capital. This tax is calculated as 1.5 x 1.000 of the operating capital, so it’s not especially high.

So, incorporating a company in Ecuador is not for everybody. It can be a very useful, even an essential element for business, but incorporating a company is a tool and not the business in itself and incorporating a company that will remain idle is not efficient at all.

If you have any questions please send a note with the word CORPORATION in the subject line to gary@garyascott.com.

Kind regards,

Andrés Córdova

Spanish Words You Can Use

Shareholder – Accionista
Company – Compañía
Capital – Capital
Efficiency – Eficiencia
Process – Proceso

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Speaking Spanish is a huge benefit on its own.  You can become one of the rare North Americans who can get along in Spanish speaking countries.  You can be one of the special people who can communicate with 10 million non-English speakers in the USA.  Spanish is the second most used language in the USA.  There are more Spanish speakers than speakers of Chinese, French, German, Italian, Hawaiian, and the Native American languages combined.  According to the Census Bureau, Spanish is the primary language of nearly 50 million people in the US.  This is the largest Spanish-speaking community outside of Mexico. Only half of these speakers also speak English “very well,” and 19% do not speak Spanish at all.

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Merri was lucky to be one of a handful of students outside of Bulgaria who were allowed to be taught this system in the early 70s.  She practiced this unique and remarkable form of education for  four decades. It was a delight!

Merri and I began integrating these techniques with other shamanic and educational tactics we had gained in our global travels and then applied them to teach Spanish in three days.

The course has been proven again and again by the thousands who have used this system.  You can read a few of the many raves we have received from delegates who have learned from the Super Thinking Spanish course we created.

Here are a few quotes from delegates of the course.

One delegate from St. Louis wrote:  Hi Gary,  Just ended forty-five years in dentistry last week, and I’m on to a new career.  What is my new career?  Still formulating, but the eye -opening,mind expanding Super-Spanish course last weekend in St. Louis surely shows me the opportunity exists to expand my horizons.

Besides having a lot of nice people to learn our new language; the methods Merri and you developed proved to be just what you said they would be.  We all and I in particular relaxed our way to new learning.  I feel so very comfortable with the basis of my new language skills that I know I will be spitting out great Spanish sentences by the time I reach Ecuador in October.  Last year I spent six weeks in Ecuador and now I plan on conversing with the people.

Today’s excerpt of your newsletter really hit home. You do what you say you will. There are no surprises or hidden sales tricks. The only tricks are beneficial to our learning.  Thank you for a wonderful experience that I was quite unable to grasp how you would pull it off.  You did, however, and I look forward to other courses that you offer, and I have absolutely no doubt they also will work beneficially.  Best regards, Denis Molloy.

Another wrote about the Super Spanish course:   Buenos Dias, here is a testimonial for Super Thinking-Super Spanish.  Please feel free to use all or part in promotions for the course.  In addition, you may give my email address to any prospect “on the fence” about enrolling.  Yesterday, in Cotacachi, Ecuador, I finished Super Spanish.  I had high expectations for the course and they were exceeded.

After three days, I can speak Spanish in complete sentences. In simple conversations, such as buying groceries or ordering a meal, I can make myself understood. I think that’s incredible!

Although I am far from the competence level of a native speaker, I feel I’ve taken a giant step forward in learning Spanish so that I can experience the people and culture of Ecuador.  The foregoing benefits would have more than justified the time and money I invested in Super Spanish.  And learning some Spanish was not the most important benefit I got from the course.

Prior to leaving the USA, I had felt for some time that the pace of life there was unhealthy for me (and for most people) and I did nothing about it.

I’ve thought about the pace issue during the course.  One of the key elements Merri Scott designed into Super Spanish is placing the student in the optimal state for learning.  In class, the past three days, I’ve been re-introduced to guided journeys and introduced to the calming effects of Baroque music (www.sundaybaroque.org).  What a blessing! I’m inclined to make one or both a daily part of my life.   Rob Christi.  Cotacachi, Ecuador

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“Most words in English that end in ION are almost identical, just pronounced differently.  For example action is accion, education-educacion, manipulation- manipulacion, etc.”

There you have it.  How long did it take you to read the sentence?  You now know hundreds of Spanish words that you will never forget.

See examples of the words you already know below.

How long would have taken you to memorize all those words?  How soon would you have forgotten them?

This is just one of seventeen Spanish lessons in the course.

The next lesson teaches how to pronounce each of the nouns.

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Here are more testimonials from previous Super Spanish Courses.

Maggie wrote: It didn’t really seem possible that we would be speaking and understanding Spanish in only 3 days but the course made it happen in a very supportive learning environment.  I would highly recommend this course for anyone wishing to learn “practical Spanish”.  The teaching methods, use of relaxation, the use of native Spanish speakers for pronunciation and the teachers themselves who were approachable and helpful and always positive made this a very valuable class.

This course improved my self confidence in my ability to learn and retain a language.  It was presented with genuine enthusiasm, great energy and the style of learning is very effective. Gracias!  It was a great experience.

Nadine wrote: “Just spent the last 3 days in the most wonderful learning environment learning Spanish.  What an amazing learning experience!!  First day out of class and I could not stop thinking in Spanish WOW!!  I am amazed by how much I learned, retained and how much more is showing up now that I am out of class.  And the best part is THERE WAS NO STUDYING!! Indeed this is Super Thinking!!!  I would highly recommend this to anyone that has ever had a desire to learn another language or learn anything in record time.

And a few days after that ….  As I went through my day, just hanging out with my son, I could see myself starting to think in Spanish.  At first I thought it was amusing but as it continued and increased I thought “My goodness this is really remarkable amazing” It was really an effortless unfolding.  I wasn’t at any point “trying” to think in Spanish, just words I knew would fly across the screen in my mind.  And then this afternoon, my son cuddled up on the couch to watch some cartoons on his ipad and was watching Peppa Pig in Spanish…hmm coincidence?  I think not, I’m radiating Spanish so much that my son is being influenced!  Thanks a million again.  This weekend the best learning experience of my life!!

If you have ever had a desire to learn Spanish this is the way to do it!  By the end of the first day I had more confidence and more practical ability than I had from any previous courses I had taken.  It was fun and relaxed and full of laughter.  You will leave this class excited to use what you have learned.  Rather than leaving overwhelmed with how much you have yet to learn and master, you are equipped with the knowledge and know how to go out and communicate as well as the excitement to do it!”

Gary noted:  “The whole approach is positive and conducive to learning at a level that benefits ALL participants.  It is not intimidating and does not set up a pass/fail atmosphere.  The presenters are terrific and the results unbelievable.  It was relaxed, informal, friendly and effective.”

Twila said:  “This class provided a very refreshing and relaxed way of learning.  The atmosphere felt very safe to say the words you were practicing.  I learned a lot in a way that will make it easy to apply.  Starting with conversation is way more fun.  How quickly you can learn!  It was a great group, great instructors and great stories.

The atmosphere in the classroom was so relaxed that learning Spanish felt like a breeze and not like a painful task.  The relaxation exercises are really conducive to language learning.  We learned A LOT in a short time and it was fun and the environment was non-threatening.”

Brigitte sent this:  “Buenos Dias, Suzanne. su clase de espanol es excelente! Muchas Gracias!  
I have already done what you suggested and went into the program listening to the music and going over the lessons.  I know: Repetition……reinforcement…..thinking in the new language….it’s all part of it.  I loved your course and will certainly recommend it to friends.  Who knows….I might feel the urge and have the opportunity to repeat it at your beautiful place in Puerto Aventuras…..Quien sabe? Hasta otro dia y saludos a su familia.”

Marie wrote:  “I would highly recommend this course.  The amount covered in 3 days is amazing!  All with no stress.  The correlation lessons and pronunciation practice has greatly reduced my anxiety to go out and use my Spanish.  I really enjoyed the whole process and thank you for the take away tools.”

Learn Spanish online $79 – using coupon code SPANISH110 at checkout to immediately save $110 off the regular price of $149

Gary

Here is the English translation of a few of the many Spanish words you now know and will never forget.  How long would it have taken you to memorize them?  How soon would you forget?

“Most words in English that end in ION are almost identical, just pronounced differently.  For example, action is accion, education-educacion, manipulation- manipulacion, etc.”

Some more of these words:  Combination, Attrition, Education, Vacation, Petition, Lotion, Motion, Construction, Abduction, Pronunciation, Concentration and a ton of others!

Learn Spanish online $79 – using coupon code SPANISH110 at checkout to immediately save $110 off the regular price of $149

(1) www.telegraph.co.uk Benefits-of-bilingualism.html