Step by step to create a Simplified Stock Company, ideal for entrepreneurs

The Simplified Stock Company (SAS) is the most important transformation of Ecuadorian Corporate Law, its main objective is facilitate the entrepreneur in carrying out their commercial activities.

The SAS They’re a new modality of company in Ecuador (as of February 28, 2020) that allows reduce the cost and time of enrollment of new companies, characterized by being limited liability, that is, he or the partners they will only be responsible up to the amount of their respective contributions.

Next, we will investigate its main characteristics.

What are the advantages of a SAS?

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• The constitutive document is a private contract that does not need to be notarized, only registered in the Registry of Companies of the Superintendence of Companies, Securities and Insurance (SCVS). This registration is free of charge.
• They may soon be constituted electronically.
• Its duration may be indefinite.
• There is no obligation to mention in the constitutive document what the activity of the SAS will be. The subscription rules and payment of capital, as well as the organic structure of the company and the rules that govern its operation, are left to the free will of the partner or partners and will be specified in the constitutive document.

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• There are not capital requirement minimum.
• The contract must be registered in the Registry of Companies of the Superintendency of Companies, Securities and Insurance. Once the act has been prepared and met the requirements, there will be no need to register the company in the Mercantile Registry, only in the Companies Registry.
• The SAS They may contain a series of requirements that range from identifying the company name to the rules for the distribution of profits. Some restrictions of the SAS is that they cannot be registered in the Public Securities Market Registry nor be traded on the Stock Exchange. In addition, the company may not carry out activities related to financial, stock market and insurance operations.

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• This new figure of company allows small businesses register with the Superintendency of Companies which is a way to identify who are entrepreneurs with high potential so that they can access various benefits.

Which are the requirements?

1. Electronic certificate of the shareholder, when applicable. (Electronic / Handwritten Signature | To obtain it, review Annex 1, page 5 of the following link)

2. Reservation of the denomination. (Appendix 1)

3. Private contract or deed.

4. Appointment(s).

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5. Registration request with the necessary information for the user’s registration in the system, that is:

• Applicant Type
• Full name
• Identification number
• Email
• Conventional telephone and/or cell phone
• province
• Town
• Direction

6. Copy(s) of identity card or passport.

Step by step to constitute a SAS

1. Create name reservation:

• Enter the portal www.supercias.gob.e
• Enter the Procedures Portal – Corporate Sector.
• Enter username and password (If you do not have it, see Annex 1), choose the Name Reservation option.
• Enter the Constitution Option.
• Follow the steps indicated in said process, choosing the type of SAS company
• Once the process is finished, generate/print your reservation.

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2. Download document format: contract, appointments, registration forms

• Enter the portal www.supercias.gob.ec
• Enter User Guides and download the required formats and documents.
• Fill in the information requested in the downloaded documents.
• In case of electronic constitution, fill in the data requested in the system for the generation of the constitution and the appointment. The information must be signed, accepted and sent.

3. If you opted for the traditional constitution, send your documents with a handwritten signature to the CAU User Service Center, if they were signed with an electronic signature, send them to the email of the corresponding office, together with the enabling documents.

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– Constitution with electronic signature:

• Constitution Request.
• A PDF file containing Private Contract / Deed + Reservation duly signed electronically.
• A PDF file for each appointment, duly signed electronically.
• A PDF file containing copies of the shareholder and representative identification documents.

– Constitution with handwritten signature:

• Request
• Signed act or contract
• signed appointment
• Reservation of denomination
• Copies of identification documents

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4. with the request received, a process will be created of incorporation of SAS, the information referring to the start of the incorporation process will be sent to the applicant’s email.

5. The procedure will be reviewed and managed by the company registration area, during said management, if necessary, emails will be sent to the applicant to correct any observation of the process. If there are no observations or after they are passed, the reasons for the registration of the act or contract and the appointment(s) will be generated, as the case may be.

6. It will proceed to communicate via email the applicant the completion of the process with all the information regarding the new company incorporated, attaching the reasons for the corresponding registrations.

For more information, we recommend you click on the link. (I)