Ecuador

Ease of Doing Business in

Ecuador

This page summarizes Doing Business 2014 data for Ecuador. The first table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region Latin America & Caribbean
Income Category Upper middle income
Population 15,492,264
GNI Per Capita (US$) 5,190
City covered Quito
Doing Business 2014 Rank Doing Business 2013 Rank*** Change in Rank
135 134 down -1

Doing Business 2014 DTF** (% points) Doing Business 2013 DTF** (% points) Change in DTF** (% points)
57.07 56.60 down 0.47
Positive=Doing Business reform making it easier to do business. Negative=Doing Business reform making it more difficult to do business.
 

Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2014 Rank 176 DB 2013 Rank*** 174 Change in Rank down-2
DB 2014 DTF** (% points) 63.34 DB 2013 DTF** (% points) 62.75 Change in DTF** (% points) up0.59

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

Indicator Ecuador Latin America & Caribbean OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

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Procedures (number)
13 9 5

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

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Time (days)
55.5 36.1 11.1

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

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Cost (% of income per capita)
25.3 33.1 3.6

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

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Paid-in Min. Capital (% of income per capita)
3.7 3.6 10.4
No. Procedure Time to Complete Associated Costs
1 Reservation of the company name at the Superintendent of Companies Less than one day (online procedure) no charge
2 Hire a lawyer to prepare the minutes of incorporation 1 day USD 800-1000
3 Deposit 50% of paid-in minimum capital in a special account of “completion of capital” (Integración de Capital) in the name of the company being formed 1 day no charge
4 Notarize the charter of incorporation and bylaws 2 days USD 245 for the first USD 25,000 of the start up capital + 0.2% of capital for notary fees for the rest of the start up capital
5 The lawyer presents the documents (attached with three certified copies of the charter and the bylaws) to the Superintendent of Companies for the approval of the company’s incorporation 5 days no charge
6 Publish an abstract of the charter in a daily newspaper that circulates in the area in which the company operates 2 days USD 75
7 Inscribe the company’s charter and resolutions, as well as the name of the company’s legal representatives in the Mercantile Registry Office 5 days USD 80
8 Apply for the Registro Unico de Contribuyentes (RUC) 4 days USD 5 per form
9 Print invoices and VAT forms at an authorized printing shop 1 day USD 40
10 Sign up online for Social Security- Instituto Ecuatoriano de Seguridad Social (IESS) and obtain password to operate the online system 2 days no charge
11 Inscribe all employee contracts with the Ministry of Labor (Inspectoria de Trabajo) 2 days no charge
12 Receive inspection and operations permit from the municipality 29 days no charge
13 Obtain “tasa de habilitación” and pay commercial patent at the competent municipality 1 day USD 50

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

***Last year's rankings are adjusted: they are based on 10 topics and reflect data corrections.

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