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• Establishing A Business Entity In Ecuador (Updated)

  1. GENERAL INTRODUCTION: In Ecuador, foreign individuals or corporations in general are permitted by law to invest, except in the so called “strategic sectors of the economy”: electricity, water and sewage, highways, airports, ports and railways infrastructures, oil and others. However, those fields can also be given in concessions or associations by the State for a certain period of time and by payment to the State of a royalty according to the respective contracts negotiated with the State after the corresponding biddings. 2. BENEFITS AND EXEMPTIONS OF TAXES: a) Ecuador offers a TOTAL EXEMPTION of income tax in ALL NEW INVESTMENTS, whether local or foreign, for 12 years, in the following fields, as long as they are located in other locations than Guayaquil and Quito (in order to foster the development of other areas of the country, and not only in the two main cities)... Please see full Chapter below for more information.

• Mediation in the Public Sector

  [author: Ximena Bustamante] In countries with a continental European legal tradition, it is very rare for State institutions to undergo mediation procedures. And even if they do, it is highly unlikely that they would reach binding agreements that would resolve their disputes. Nonetheless, Ecuador is an exception. As a result of the enactment of the Arbitration and Mediation Law, there has been a significant development of mediation in which a public entity intervenes. Two ingredients have combined to make this development happen. On the one hand, there are regulations that allow and guide the State to solve disputes through mediation, and on the other hand, there are procedures that take into account the nuances of having public officials sitting at the negotiation table, based on the principles of mediation confidentiality and legality of public law. Ecuador has broad experience in mediation with the State. The Mediation Center of the State Attorney General’s Office has witnessed a steady growth in these types of proceedings. In 2013, it received 421 requests for mediation involving a public entity. By 2019, that number approached 900 new requests. Mediations performed in other mediation centers throughout the country are not included in those numbers. It is important to note that mediation in Ecuador is voluntary; therefore, the fact that the parties choose this method demonstrates their confidence in it. Thus, both public entities and their private counterparts have succeeded in resolving cases that are extremely technical and complex, and involve significant amounts of money and widespread national interest. Please see full Publication below for more information.

• Mediation in the Public Sector [Spanish]

  [author: Ximena Bustamante] En países con una tradición jurídica continental europea, resulta muy poco común que las instituciones del Estado se sometan a procedimientos de mediación. Y aún si lo hacen, es poco probable que lleguen a acuerdos vinculantes que pongan fin a sus controversias. Sin embargo, el Ecuador es una excepción, pues desde la promulgación de la Ley de Arbitraje y Mediación hasta la fecha se ha podido constatar un importante desarrollo de la mediación en la que interviene una entidad pública. Dos ingredientes se han combinado para hacer posible este desarrollo. Por un lado, una normativa que permite y guía al Estado en la búsqueda de acuerdos para resolver controversias a través de mediación. Por otro, el diseño de un procedimiento que toma en cuenta las particularidades de tener sentados en la mesa de negociación a funcionarios públicos, basándose en los principios de confidencialidad de la mediación y de legalidad del derecho público. Ecuador tiene amplia experiencia en mediación con el Estado. El Centro de Mediación de la Procuraduría General del Estado ha sido testigo de un crecimiento sostenido de este tipo de procedimientos. En el año 2013 recibió 421 solicitudes de mediación en las que intervenía una entidad pública, ya para el año 2019 ese número se acera a las 900 nuevas solicitudes. A estos números se agregan las mediaciones de este tipo que se llevan a cabo en otros centros de mediación del país. Es importante resaltar que en el Ecuador la mediación es voluntaria, por lo que el hecho de que las partes opten por este mecanismo refleja la confianza que ha adquirido la mediación para resolver este tipo de controversias. Así pues, tanto las entidades públicas cuánto sus contrapartes privadas han logrado resolver asuntos enorme de complejidad técnica o jurídica, de cuantías importantes y de interés nacional. Please see full Publication below for more information.

• Establishing A Business Entity In Ecuador (Updated)

  1. GENERAL INTRODUCTION: In Ecuador, foreign individuals or corporations in general are permitted by law to invest, except in the so called “strategic sectors of the economy”: electricity, water and sewage, highways, airports, ports and railways infrastructures, oil and others. However, those fields can also be given in concessions or associations by the State for a certain period of time and by payment to the State of a royalty according to the respective contracts negotiated with the State after the corresponding biddings. 2. BENEFITS AND EXEMPTIONS OF TAXES: a) Ecuador offers a TOTAL EXEMPTION of income tax in ALL NEW INVESTMENTS, whether local or foreign, for 12 years, in the following fields, as long as they are located in other locations than Guayaquil and Quito (in order to foster the development of other areas of the country, and not only in the two main cities)... Please see full Chapter below for more information.

• Ecuador Announces Tender Process for Largest Refinery in the Country

  The Ecuadorian Ministry of Energy and Non-renewable Resources (“the Ministry”) recently announced a tender process for the Administration, Operation, Repair, Fuel and Emissions Quality Improvement, and Construction of a High-Conversion Unit, for the State-owned Refinery in Esmeraldas Province.

• Ecuador’s Labor Justice Act Protects Women Who Are Pregnant, Breastfeeding, or on Maternity Leave

  The Labor Justice Act (Ley de Justicia Laboral) published in the Statutes at Large, has introduced unfair dismissal protection for pregnant women as well as for women who are union leaders.

• Buying And Selling Real Estate In Ecuador (Updated)

  KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER ECUADOREAN LAW - I. STANDARD FORMS OF AGREEMENTS - A. Offer to Purchase sets forth Buyer’s offer of price, date for closing, contingencies for inspections, financing etc. and date for signing a formal Promise of Purchase and Sale agreement, which for validity has to be a notary public deed. B. Promise of Purchase and Sale Agreement sets forth the complete terms of the purchase and sale... Please see full Chapter below for more information.

• Establishing A Business Entity In Ecuador

  1. GENERAL INTRODUCTION: In Ecuador, foreign individuals or corporations in general are permitted by law to invest, except in the so called “strategic sectors of the economy”: electricity, water and sewage, highways, airports, ports and railways infrastructures, oil and others. However, those fields can also be given in concessions or associations by the State for a certain period of time and by payment to the State of a royalty according to the respective contracts negotiated with the State after the corresponding biddings.... Please see full Chapter below for more information.

• Expanding Cannabis Operations in Latin America & The Caribbean: Ecuador

  Medical Use: No. There is proposed legislation (Health Code) for congress approval. Recreational Use/Adult Use: Recreational/adult use is not permitted. Current Regime/Legislation (or Proposed Legislation): Current: The Criminal Code establishes that possession of narcotic or psychotropic substances for personal use or consumption in the amounts established by the corresponding regulations shall not be punishable: for cannabis is 20ml- (Official registration supplement 628 of Nov 16, 2015).... Please see full Chapter below for more information.

• Almost Entire Ecuadorian Population Affected by Massive Data Breach

  The Ecuadorian Ministry of Telecommunications and Information Security has announced an investigation into data analytics company Novaestrat after news broke this week that the company left an Elasticsearch server open without any password protection, allowing open access to the data.

Featured documents

• DISPUTE RESOLUTION: International Arbitration: Chevron Tribunal Declares Ecuador in Breach of Interim Awards

  On February 7, 2013, an investment arbitration tribunal issued its third interim measures award in the Chevron vs. Ecuador case. The tribunal found Ecuador in breach of its previous award ordering Ecuador to take all measures necessary to prevent enforcement within or without Ecuador of a $19...

• Buying And Selling Real Estate In Ecuador (Updated)

  KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER ECUADOREAN LAW - I. STANDARD FORMS OF AGREEMENTS - A. Offer to Purchase sets forth Buyer’s offer of price, date for closing, contingencies for inspections, financing etc. and date for signing a formal Promise of Purchase and Sale agreement, which...

• What Happens In Ecuador Does Not Stay In Ecuador

  In last week’s decision in Chevron v. Donziger, the court enjoined the enforcement of a $9.5 billion Ecuadorian judgment against Chevron Corp. for environmental pollution, alleged to have been caused by its predecessor, Texaco Inc., finding that the judgment was procured by fraud and through a...

• Ecuador’s Labor Justice Act Protects Women Who Are Pregnant, Breastfeeding, or on Maternity Leave

  The Labor Justice Act (Ley de Justicia Laboral) published in the Statutes at Large, has introduced unfair dismissal protection for pregnant women as well as for women who are union leaders....

• Doing Business in Latin America and The Caribbean: Ecuador

  Situated on the northwest coast of South America, the Republic of Ecuador encompasses an area of approximately 256,549 square kilometers, or 99,438 square miles. Ecuador is a constitutional, democratic, sovereign and independent state. The 2008 Constitution mandates that the president ...

• Ecuador Announces Tender Process for Largest Refinery in the Country

  The Ecuadorian Ministry of Energy and Non-renewable Resources (“the Ministry”) recently announced a tender process for the Administration, Operation, Repair, Fuel and Emissions Quality Improvement, and Construction of a High-Conversion Unit, for the State-owned Refinery in Esmeraldas Province....

• Eleventh Circuit Affirms District Court’s Decision Allowing Discovery For Use In Foreign Proceeding

  The Eleventh Circuit affirmed a decision permitting discovery for use in foreign proceedings which were contemplated but not yet pending. In this case, which arose from a billing dispute between Consorcio Ecuatoriano de Telecomunicaciones S.A. (“CONECEL”) and Jet Air Service Ecuador SA, CONECEL...

• Establishing A Business Entity In Ecuador (Updated)

  1. GENERAL INTRODUCTION: In Ecuador, foreign individuals or corporations in general are permitted by law to invest, except in the so called “strategic sectors of the economy”: electricity, water and sewage, highways, airports, ports and railways infrastructures, oil and others. However, those...

• "The 'Law 42' Arbitrations Against Ecuador and the Importance of BIT Language"

  Bilateral Investment Treaties (BITs) afford investors a series of guarantees against expropriation or unfair treatment of investments in foreign jurisdictions. They also typically allow investors to enforce those rights before a neutral international arbitral tribunal under the rules of the...

• Mediation in the Public Sector

  [author: Ximena Bustamante] In countries with a continental European legal tradition, it is very rare for State institutions to undergo mediation procedures. And even if they do, it is highly unlikely that they would reach binding agreements that would resolve their disputes. Nonetheless,...