Ecuador is a country with business-friendly policies, which makes it an attractive jurisdiction for foreigners to set-up a company and begin business operations. When you want to incorporate a business in Ecuador, you also will be involved with the opening of a bank account for your company. In this article, one of our specialized accountants will explain the process to you.
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How to Open a Corporate/Company Bank Account in Ecuador?
Unlike other countries, in Ecuador, it is rather easy to open a corporate/company bank account. If you have a newly formed company in Ecuador, there may be some bank account limitations, however, after a certain period of time and once you have proven that the company is fully functional and that business transactions are being made, these limitations are withdrawn.
What Are The Requirements to Open a Corporate/Company Bank Account in Ecuador?
Firstly, it should be understood that each bank asks for different requisites, minimum capital to open the account, and varying formal documentation.
For a corporate bank account, almost every bank will ask for and/or require the following:
- Copy of the company’s deeds (bylaws).
- Copy of the appointment of the legal representative, normally the General Manager, duly registered in Mercantile Registry.
- Copy of the ID of the legal representative.
- List of the shareholders of the company.
- Certification that all the company’s obligations are met, granted by the Superintendencia de Compañías.
- Application form completed and signed by the legal representative.
- Bank account opening contract signed by the legal representative.
- Acceptance of the online banking terms and conditions signed by the legal representative.
- Company financial information may be requested.
Extra Requisites Depending on the Company’s Activity
In Ecuador, some policies have been created by the government in order to avoid money laundry practices. Therefore, depending on the activity of the company, the signing of some additional forms might be necessary. Forms like “Know your Client” which include some more detailed information about the company, shareholders and detailed company activities.
Opening Your First Ecuadorian Corporate Bank Account
Depending on the bank, the initial deposit for the corporate bank account opening can vary from USD$30 to USD$2,000.
Normally, if it is the first bank account of a new company, the company will only be allowed to open a savings account and not a checking account due to the fact that a checking account requires good credit record (which a newly formed company will not have). A checking account can be granted to a new company if the legal representative has a good credit history and banking record, nevertheless, it depends exclusively on the bank.
Steps to Open a Corporate Bank Account in Ecuador
The first step you should take in order to open a bank account is to determine which bank company you want to open an account with. We strongly recommend that you review all the options to get the best bank that suits your company’s needs and requirements.
Then you will need to decide which kind of bank account you want to open, a savings or a checking account (noting that not all banks will allow the opening of a checking account for a new company).
Ecuador is one of the dollarized countries in Latin America.
Once you have decided which bank you will work with, and the type of account, you will have to meet all requirements of that particular bank.
After all the requirements are completed, the account number will be granted and the initial deposit must be made in order to activate the account. With the account fully activated, the bank will grant the username and password for the online banking system. Depending on the bank, the process to open a new bank account can take between 2 and 5 labour days. Once complete, you are ready to begin commercial operations and take advantage of all the business opportunities available in Ecuador!
Common Questions when opening a corporate bank account in Ecuador
Based on our extensive experience these are the common questions and doubts from our clients when looking to open a company bank account in Ecuador.
Most banks in Ecuador do not allow opening an account entirely online for companies. For example, the legal representative of the company must attend in person to sign certain documents and forms.
First, the account must be opened by depositing the initial capital. Later, when the company has already been established, the following documents must be presented to our local bank:
1. Company Bylaws
2. Appointment of Legal Representative
3. Legal Representative ID
4. Certification of Legal Existence
5. Invoice or receipt of water or electricity service
6. RUC (Tax ID)
Initially, only the Legal Representative and subsequently all the designated people by Legal Representative.
Options are:
1. Banco Produbanco
2. Banco Pichincha
3. Banco de Guayaquil
4. Banco del Austro.
All types of companies must open a bank account in the name of the company to conduct business transactions and deposit the legal minimum incorporation capital. The bank account will also be used by the company to pay salaries to its employees and to carry out all transactions related to its commercial activity.
Yes. All financial entities maintain bank secrecy. This implies the secrecy of all deposits and transactions of any nature received by a private or public bank, and prohibits these entities from providing information related to any financial operation if the information is not delivered to the bank account owner, or whoever has been expressly authorized by him.
Looking for More Information About Business Accounting in Ecuador?
If you have any questions about how to open a corporate bank account in Ecuador, or doubts regarding business accounting, our local Ecuadorian accountancy experts will be happy to provide you with further information – don’t hesitate to contact one of our team members here.
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.
