How to obtain RUC or RISE in Ecuador?

To undertake it is important not only to know or define the idea and design the business model, it is also important to formalize it.

That is why it is necessary to make sure that the business is operating in the law, obtaining advice on the most convenient type of legal status and the corresponding tax regime based on sales.

So you can start a business in Ecuador

Be it a physical business or online the Single Taxpayers Registry (RUC) or the Simplified Tax Regime (RISE) should be considered.

In Ecuador there are 459,911 taxpayers through the RISE and 1′507,011 natural persons with RUC and 1′507,011 companies, according to the Internal Revenue Service (SRI).

Below are the details of both:

Single Registry of Taxpayers (RUC)

Requirements:

• Access code to “SRI Online”
• Valid identity card
• Having financed or possessing justification for not having financed.

Procedure:

1. Enter the Online Registration tool.
2. Accept terms and conditions.
3. Enter general taxpayer information.
4. Then means of contact.
5. Then the home address.
6. Enter the address of the parent establishment.
7. List the economic activities.
8. Then the main economic activity.
9. The summary of the information entered is reflected.
10. And you confirm the registration of RUC.

Simplified Tax Regime (RISE)

Requirements

1. Be a natural person.
2. Not having income greater than $ 60,000 in the year, or if it is under a dependency relationship, the income for this concept does not exceed the basic fraction of the income tax levied at a zero percent (0%) rate for each year.
3. Not engage in any of the restricted activities.
4. Not have been a withholding agent for the last 3 years.

Profits:

• You do not need to make declarations, therefore, you avoid the costs of buying forms and hiring third parties, as processors, to fill them out.
• Tax withholding is avoided.
• You will have no obligation to keep accounting.
• For each new worker that you add to your payroll and that is affiliated with the IESS, you can request a discount of 5% of your quota, up to a maximum of 50% discount.

Simplified Joint Stock Company

Incorporating a Simplified Stock Company (SAS) is another option for the entrepreneur. Since May 18, 2020, the date on which the Superintendency of Companies, Securities and Insurance enabled this procedure, until last October 31, 13,485 SAS have been created through the headquarters and regional offices. In the accumulated total from January to October 2021, 9,295 SAS were constituted

According to the Superintendency, Opening a SAS has multiple benefits: it can be created using a private document, which saves the entrepreneur time and money; its flexibility allows it to be constituted by one or more natural or legal persons, through a simplified procedure directly at the entity; does not require a minimum capital; can engage in any legal commercial or civil activity, as indicated by its purpose; its duration may be indefinite; and the liability of its shareholders is limited to their contributions, thus protecting their assets.

Requirements:

• Electronic shareholder certificate. Name reservation
• Private contract or deed
• Appointment (s)
• Registration request with the information necessary for the user to register in the system, that is: type of applicant, full name, identification number, email, conventional telephone and / or cell phone, province, city, address.
• Copy (s) of identity card or passport

How to establish it?

• Create denomination reservation: Enter the portal www.supercias.gob.ec to the procedures portal – corporate sector, enter username and password, go to the option reservation of name. Then enter the constitution and follow the steps.
• Download document format and fill in the information.
• Send the following documents to the email account of the corresponding office: application for Constitution, a PDF file containing a private contract / deed plus electronically signed reservation and other requirements.
• With the application received, a SAS constitution procedure will be created. Information regarding the start of the constitution process will be sent to the applicant’s email.
• The procedure will be reviewed and managed by the company registration area.
• The completion of the process will be communicated via email to the applicant with all the information regarding the new company incorporated, attaching the corresponding registration reasons. (I)