Appointing a legal representative in Ecuador is required if you are planning to establish a company in the country. That representative will be responsible for acting on your behalf and undertaking all regulatory procedures.
Your legal representative will be the face of your organization in the local business community, so it pays to choose wisely.
What will a Representative do?
Ecuador’s labor legislation recognizes legal representatives as agents appointed by legally established companies. That means they are not considered workers and, therefore, they do not have the right to receive the same labor benefits as most employees in Ecuador.
However, a legal representative will still have to contribute to the National Social Security Institute — Ecuador’s compulsory public insurance. This contribution equates to 17.6% of the payee’s income tax.
Your legal representative will represent your organization before local authorities. They will fulfill all legal requirements, attend all appointments and respond to any demands on your behalf — a particularly useful service for anyone who doesn’t speak the local language.
Some of the most essential duties of a legal representative in Ecuador include:
Signing contracts
Hiring new staff
Acting as a representative in company trials and lawsuits.
Agreeing or conclude commercial agreements
Signing any obligation authorized by the shareholders
Acting as a representative in banking arrangements
When do you need a legal representative in Ecuador?
You will need a legal representative:
At the point of company formation in Ecuador. This legal representative will serve until a permanent one is appointed by shareholders
At any time that the shareholders decide to remove the incumbent legal representative, or accept their resignation
When the incumbent legal representative’s statutory period expires
Choosing a legal representative
Any person of legal age and sufficient capacity to fulfill statutory obligations can be appointed as a legal representative in Ecuador. A company can also act as a legal representative.
In either case they will ideally:
Have technical knowledge related to the administration of a company
Understand the markets where they are operating — both the country and the sector
Engage with a trusted Legal Representative in Ecuador
At Biz Latin Hub, our team of accounting and legal specialists have broad experience supporting foreign companies and multinationals expand into Ecuador and the rest of Latin America. With our full suite of market entry and back-office services, we are equipped to help you navigate your business entry into Ecuador.
As informações fornecidas aqui não devem ser interpretadas como orientação ou aconselhamento formal. Consulte um profissional para sua situação específica. As informações fornecidas são apenas para fins informativos e podem não abranger todas as leis, padrões e práticas recomendadas pertinentes. O cenário regulatório está em constante evolução; as informações mencionadas podem estar desatualizadas e/ou podem sofrer alterações. As interpretações apresentadas não são oficiais. Algumas seções baseiam-se nas interpretações ou pontos de vista de autoridades relevantes, mas não podemos garantir que essas perspectivas serão apoiadas em todos os ambientes profissionais.
La información que aquí se ofrece no debe interpretarse como orientación o asesoramiento formal. Por favor, consulte a un profesional para su situación específica. La información proporcionada tiene únicamente fines informativos y es posible que no recoja todas las leyes, normas y mejores prácticas pertinentes. El panorama normativo está en continua evolución; la información mencionada puede estar obsoleta y/o sufrir cambios. Las interpretaciones presentadas no son oficiales. Algunas secciones se basan en las interpretaciones o puntos de vista de las autoridades pertinentes, pero no podemos garantizar que estas perspectivas se respalden en todos los entornos profesionales.
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.
Legal Team Ecuador
Legal Team Ecuador is the Biz Latin Hub leading experts on doing business in Ecuador The Team writes on the news, doing business, law, and changing regulations. The team are experts in corporate law, Administrative law, Employment law, Immigration law and legal advisory services. Read more about them here. You can contact Legal Team Ecuador via our "contact us page".
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