Simplified stock companies in Ecuador, a comparative analysis

Abstract

Simplified stock companies are quite new in Ecuador, in 2020 in our legislation this legal figure was included, these companies have the nature purely mercantile and can be set up quickly because they do not need minutes, public documents as neither of inscriptions in the Mercantile Registry or Property, as appropriate, which implies that the constituent(s) so not incur costs for its creation. The novelty of this type of mercantile companies is that they do not require an ample an onerous social capital since they can even be constituted with one American dollar, although these companies have responsibilities with the state control entities, this liability will be strictly limited up to the maximum amount of their contributions, by the Companies Law, is a different legal person of its shareholders, unless otherwise proved by court order. In several countries such as Colombia, Argentina, Brazil, among others, this figure of corporate law already existed, that, in addition to having a simple creation procedure, fast, with no cost, they provide various benefits to their shareholders, since it allows them to generate various economic activities as wide as required, this analysis of compared legislation will allow us understand the importance of this new legal figure in Ecuador as well as their similarities and differences with other legislation.