The dollarisation of the economy in 2000 has reduced inflation and increased GDP growth, making it much easier for foreign companies to set up business in Ecuador.

 

Main Business Opportunities

• Oil – upstream and downstream opportunities

Construction of a second national crude pipeline will lead to a major expansion of the oil sector in Ecuador. New investment in production to fill the second pipeline is estimated at $2billion.

 

As the government continues to encourage privatisation there are also opportunities in the following sectors:

• Airports – new construction
• Environment
• Water
• Security

The UK ’s top five exports to Ecuador are currently

• Beverages
• Medicinal and pharmaceutical products
• Chemical materials and products
• Power generating machinery and equipment
• Organic chemicals

 

Setting up a business in Ecuador - Local representation

There are no legal requirements to establish an agency or local representation.  It would be advisable for any foreign company considering a Dealer/Agency Representative Agreement to have the agreement signed in their home country so that it would come under their home law.

Requirements to open a branch office:

1.      Written Consent of the Board of Directors of the company (legalised by the Ecuadorean Consulate)

• To operate overseas
• To assign US$2.000 (To open the branch)

2.      A power of Attorney granted in favour of an Ecuadorean person or foreigner residing in Ecuador who will represent the Company.  In the beginning the agent may be an Ecuadorean lawyer.

3.      Proof of existence of the Company issued by the Ecuadorean Consulate in the country of origin.

4.      The opening of a “capital integration account” with $2.000.

5.      The Company’s Bylaws.

The documents must be legalised by the Consulate of Ecuador in the place of origin of the company. See Ecuador embassies abroad list.

 

Source: www.uktradeinvest.gov.uk/ukti

Last updated 12th June 2006