Ecuador

Ease of Doing Business in

Ecuador

This page summarizes Doing Business 2015 data for Ecuador. The first section presents the Ease of Doing Business rank (out of 189 economies) and the distance to frontier (DTF)** measure, overall and by topic. The second section summarizes the key indicators for each topic benchmarked against regional averages.

Economy Overview

 
Region Latin America & Caribbean
Income Category Upper middle income
Population 15,737,878
GNI Per Capita (US$) 5,510
City covered Quito
Doing Business 2015 Rank Doing Business 2014 Rank*** Change in Rank
115 115 0

Doing Business 2015 DTF** (% points) Doing Business 2014 DTF** (% points) Change in DTF** (% points)
58.88 58.30 down 0.58
Positive=Doing Business reform making it easier to do business. Negative=Change 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 2015 Rank 165 DB 2014 Rank*** 157 Change in Rank down-8
DB 2015 DTF** (% points) 65.31 DB 2014 DTF** (% points) 65.15 Change in DTF** (% points) up0.16

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).

View methodology
Procedures (number)
13.0 8.3 4.8

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 30.1 9.2

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)
24.0 31.1 3.4

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.

View methodology
Paid-in min. capital (% of income per capita)
3.5 3.2 8.8
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 800-1,000
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 no charge
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 score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 0 and 100, with 100 representing the frontier. Read more...

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

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