Ecuadorian legislation offers broad facilities to establish foreign investment in a wide range of activities. From the type of business entities accepted in Ecuador , corporations and branches of foreign companies which have special systems for investment in certain areas, Ecuador offers flexible, clear, stable norms that ensure a very attractive climate of economic freedom.
Investors can establish joint ventures or holding companies in order to link their interests with companies that are already established and successful. They can also undertake new activities, taking advantage, for instance, of the privileged treatment granted in the free zone system, which exempts them from payment of the value added tax [VAT], tax on profits, customs duty, special consumption tax [ICE], municipal taxes and export fees.
Another interesting alternative is in the Maquila Law, which authorizes exportation from Ecuador of goods with the final added value incorporated in this country. This attractive mode of production is also exempt form the VAT and export fees, with the understanding that production is export oriented. The special system guarantees the conditions for these activities in the long term and, of course, free repatriation of profits, as with all foreign investment.
