With business-friendly policies, this South American country is an attractive jurisdiction for foreigners looking to set up a company and begin business operations. When you incorporate a business in Ecuador, you will also need to open a corporate bank account in Ecuador for your company.
Setting up a bank account will allow you to make financial transactions in the name of your business. This includes operational expenses, and paying your employees salaries. Having a bank account is a crucial part of managing your funds and is necessary to ensure compliance with legal requirements. Therefore, every investor must know how to set up a corporate bank account in Ecuador.
Unlike in other countries, it is rather easy to open a corporate bank account in Ecuador. If your company is newly formed, you may encounter some bank account limitations. However, after a certain period of time, once you have proven that the company is fully functional and that business transactions are being made, these limitations will be withdrawn.
Read on for more information on opening a corporate bank account in Ecuador.
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What is the best bank in Ecuador for foreign companies?
Each of these banks has its own strengths and services designed to support international businesses. It is recommended that you explore each bank’s specific offerings, fees and requirements to determine which one best suits your company’s needs in Ecuador.Some of the more popular banks in Ecuador are the following:
1. Banco Produbanco.
2. Banco Pichincha.
3. Banco de Guayaquil.
4. Banco del Austro.
Recommendation: We advise you to research each bank’s specific offerings and requirements to find the one that best suits your company’s needs.
Ecuador is one of the dollarized countries in Latin America.
What documents do I need to open a corporate bank account in Ecuador?
The most difficult part of opening a company account in Ecuador is putting together all the required documents. To formally request the opening of an account, you will be asked to hand over a number of financial and legal documents for the company.
Each bank has its own policies, and may have different requirements for customers seeking to open a corporate bank account. The documentation requested varies bank-to-bank. But 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 the 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.
The Ecuadorian government has put some policies in place in order to avoid money laundry practices. Therefore, depending on the activity of the company, the signing of some additional forms might be necessary. This may include forms like “Know your Client”, which provide more detailed information on the company, its shareholders, and/or business activities.
How to open a corporate bank account in Ecuador: 4-Step guide
To open a corporate bank account in Ecuador you must follow these 4 steps:
- Step 1 – Choose your provider.
- Step 2 – Choose a bank account type.
- Step 3 – Fulfill requirements.
- Step 4 – Activate your account.
1. Choose your provider
The first step you should take is to determine which bank you want to open an account with. We strongly recommend that you review all the available options. This will help you choose the bank that best suits your company’s business needs.
2. Choose bank account type
Then, you will need to decide which kind of bank account you want to open. You may choose a savings or a checking account. 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. This is due to the fact that a checking account requires a 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. However, this depends exclusively on the bank.
3. Fulfill requirements
Once you have decided which bank you will work with, and the type of account you want to open, you will have to hand over all the required documents as dictated by that particular bank.
4. Activate your account
Once you have fulfilled all the requirements, the account number will be granted. Then, the initial deposit must be made in order to activate the account. Depending on the bank, the initial deposit required to open a corporate bank account can vary from USD$30 to USD$2,000. With the account fully activated, the bank will help you create a username and password for the online banking system. Depending on the bank, once you have fulfilled their requirements, opening a bank account can take as little as 2 to 5 labor days.
Once you have completed the four steps outlined above, you are ready to begin using your company bank account. This is the last step in company incorporation. Your business is now ready to begin commercial operations and take advantage of all the business opportunities available in Ecuador!
FAQs on opening a corporate bank account in Ecuador
Based on our extensive experience, these are the common questions and doubts of our clients on opening a company bank account in Ecuador:
1. Can I open a corporate bank account online in Ecuador?
Most banks in Ecuador do not allow opening an account entirely online for companies. Often, the legal representative of the company must attend in person to sign certain documents and forms.
2. What documents do I need to open a company bank account in Ecuador?
Once the company has been established, the following documents must be presented to your 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).
3. Who can have access to a company bank account in Ecuador?
Initially, only the legal representative. Subsequently, all the people designated by the legal representative.
4. What is the best bank in Ecuador for foreign companies?
The options are as follows:
1. Banco Produbanco.
2. Banco Pichincha.
3. Banco de Guayaquil.
4. Banco del Austro.
5. Why do companies open bank accounts in Ecuador?
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.
6. Does Ecuador have bank secrecy?
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 them.
Biz Latin Hub can help you open a corporate bank account in Ecuador
If you have any questions on 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.
