If your international business expansion isn’t going to plan, it’s important to understand how to liquidate a company in Ecuador.
Ecuadorian legislation provides several procedures to liquidate, cancel and dissolve established companies or branches domiciled in the country.
In general terms, it is important to keep in mind that the potential closing process of a company in Ecuador is complex and can take some time to see through to the end. There are several important steps and legal obligations to comply with along the way. You’ll need to engage with a local legal expert in Ecuador for assistance with this process.
The causes for the closure of the business are determined by law. However, liquidation proceedings typically begin from the unilateral and voluntary decision of the partners, or by decision of a competent authority (such as the Superintendence of Companies or a court order).
Main steps to liquidate a company in Ecuador:
- Liquidate through a petition
- Inventory of assets and debts
- Submit report and work plan to Superintendence of Companies
- Liquidate company assets and property
The time it takes to liquidate a company in Ecuador varies depending on several factors, such as the size of the company, the amount of liabilities, the previous status it had before liquidation, among others. In this sense, the average time to liquidate a company in Ecuador is 120+ days.
Common FAQs for Liquidating an entity in Ecuador:
- What is the process of liquidation in Ecuador?
- How long does it take to liquidate a company in Ecuador?
Engage with corporate law experts to liquidate your company in Ecuador. If your company has made the decision to exit the Ecuadorian market, and needs assistance to comply with legal and administrative liquidation requirements, we can help. Contact our friendly corporate law specialists in Ecuador here at Biz Latin Hub for assistance and advice customized to your company’s needs.
Learn more about our team and expert authors. The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.
