ECUADOR NEWS MAGAZINE: Just 6 hours to start a company in Ecuador

ECUADOR NEWS MAGAZINE: Just 6 hours to start a company in Ecuador: Ecuador news magazine - Quito, August 26 (Andes).- Currently, to set up a company in Ecuador takes between 35 and 55 days, unlike other countries in the region such as Uruguay and Chile in which a company can be set up in a week.

This gap is due to the amount of bureaucratic procedures to be completed. President Rafael Correa said that he is in a fight against procedures in which they “make up” obstacles. “We are going to simplify things, change the view”, he said.

Among 174 countries, Ecuador is in the 169th position in terms of obstacles to set up a company. Nearly 30% of GDP per capita is used in legal fees, i.e. USD $1,600. Likewise, a minimum capital is required to set up a company.

There are 13 steps to set up a company. Besides, the cost for the time spent in these procedures amounts to USD $67 million per year. “It’s not only the payment of rates, fees, legal fees, but also the cost to time wasted”, said the President.

With the Government’s proposal, the procedures to set up a company will be reduced to the point that all may be completed in six hours and on-line. “The thirteen (13) steps will be reduced to one in a single stop. The USD$ 800 minimum capital requirement will be brought down to USD $0”, he said.