Ecuador is an appealing jurisdiction for foreigners looking to establish a company and start business operations due to its business-friendly policies. Opening a bank account is a necessary step in incorporating a business in Ecuador. In this article, one of our specialized accountants will provide a detailed explanation of the process.
To open a corporate or company bank account in Ecuador is relatively straightforward compared to other countries. However, there may be some limitations for newly formed companies. These limitations are lifted once the company demonstrates its full functionality and conducts business transactions.
The requirements for opening a corporate or company bank account in Ecuador include providing financial and legal documents of the company. It is important to note that each bank may have different requirements, such as minimum capital and specific documentation. Generally, the following documents are required:
1. Copy of the company’s deeds (bylaws).
2. Copy of the appointment of the legal representative, typically the General Manager, registered in the Mercantile Registry.
3. Copy of the legal representative’s ID.
4. List of the shareholders of the company.
5. Certification from the Superintendencia de CompañÃas confirming that all company obligations have been met.
6. Completed and signed application form by the legal representative.
7. Bank account opening contract signed by the legal representative.
8. Acceptance of online banking terms and conditions signed by the legal representative.
9. Company financial information may be requested.
In compliance with the government’s anti-money laundering policies, additional forms may be necessary depending on the company’s activity. These forms, such as the “Know your Client” form, require more detailed information about the company, shareholders, and specific company activities.
Upon opening a corporate bank account in Ecuador, the initial deposit can range from USD$30 to USD$2,000, depending on the bank. Newly formed companies are usually only eligible for a savings account initially, as a checking account requires a good credit record. However, a checking account may be granted if the legal representative has a good credit history and banking record, although this is at the discretion of the bank.
The process of opening a corporate bank account in Ecuador involves several steps. Firstly, you must choose which bank you want to work with and decide on the type of account, either a savings or checking account. Then, you must meet all the requirements of the chosen bank. After completing all the requirements, you will receive an account number, and an initial deposit must be made to activate the account. Once the account is activated, the bank will provide you with a username and password for online banking access. The timeline for opening a new bank account can take between 2 and 5 labor days, depending on the bank.
With a fully open bank account, you are ready to commence commercial operations and take advantage of the business opportunities available in Ecuador.
Here are some common questions and answers when opening a corporate bank account in Ecuador:
1. Can I open a corporate bank account online?
Most banks in Ecuador do not allow fully online account opening for companies. The legal representative must be present in person to sign certain documents and forms.
2. What documents do I need to open a company bank account in Ecuador?
You will need to deposit the initial capital to open the account. Later, when the company is established, you will need to present the following documents to the bank:
– Company Bylaws
– Appointment of the legal representative
– Legal representative’s ID
– Certification of Legal Existence
– Invoice or receipt of water or electricity service
– RUC (Tax ID)
3. Who can access a company bank account?
Initially, only the legal representative has access. Later, additional authorized individuals designated by the legal representative may have access.
4. What is the best bank in Ecuador for foreign companies?
Some options for foreign companies are: Banco Produbanco, Banco Pichincha, Banco de Guayaquil, and Banco del Austro.
5. Why do companies open bank accounts in Ecuador?
Companies must open bank accounts to conduct business transactions, deposit the minimum required capital, pay employee salaries, and carry out commercial activities.
6. Does Ecuador have bank secrecy?
Yes, financial entities in Ecuador maintain bank secrecy, meaning that all deposits and transactions are kept confidential. The bank is prohibited from providing information about any financial operation unless authorized by the account owner.
If you need more information about opening a corporate bank account in Ecuador or have questions about business accounting, our local accountancy experts in Ecuador are available to assist you. Please don’t hesitate to contact our team for further information.
