Establishing A Business Entity In Ecuador (Updated)

International Lawyers Network

1. GENERAL INTRODUCTION: In Ecuador, foreign individuals or corporations in general are permitted by law to invest, except in the so called “strategic sectors of the economy”: electricity, water and sewage, highways, airports, ports and railways infrastructures, oil and others. However, those fields can also be given in concessions or associations by the State for a certain period of time and by payment to the State of a royalty according to the respective contracts negotiated with the State after the corresponding biddings.


a) Ecuador offers a TOTAL EXEMPTION of income tax in ALL NEW INVESTMENTS, whether local or foreign, for 12 years, in the following fields, as long as they are located in other locations than Guayaquil and Quito (in order to foster the development of other areas of the country, and not only in the two main cities)...

Please see full Chapter below for more information.

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