Quevedo & Ponce - Noticias Legales
Corporate Transformation and Sports Corporations: Comply with the National Solidarity Law
- July 22nd, 2025
- Quevedo & Ponce
Is your company engaged in mining, finance, insurance, telecommunications, energy, or biodiversity? Then this is relevant to you.
The General Regulation to the Organic Law on National Solidarity, published in Official Register Fifth Supplement No. 81 on July 15, 2025, regulates the corporate entities in Ecuador. If your company is a Simplified Stock Corporation (S.A.S.) operating in strategic or regulated sectors, you have six months to:
- Convert into another type of permitted commercial company;
- Amend its bylaws to exclude such activities; or
- Proceed to its voluntary dissolution.
The non-accomplishment may result in automatic dissolution by the Superintendency of Companies, Securities, and Insurance. This reinforces the regulated nature of S.A.S. structures as entities intended for low-risk business activities.
Additionally, the Second General Provision introduces clear rules for the newly established figure of the Sports Corporation (Sociedad Anónima Deportiva – S.A.D.). Although it does not constitute a new corporate type, it will be governed by the Companies Law for commercial matters and by the Sports Law for operational matters. Its exclusive purpose will be the development of professional sports activities, and its corporate name must include the designation “sociedad anónima deportiva” or the abbreviation “S.A.D.”
How can Quevedo & Ponce assist you?
At Quevedo & Ponce, we have extensive experience in corporate transformation, regulatory compliance, and company restructuring. We guide our clients through processes that are fully subject to the current legislation. Our team of specialized attorneys provides full legal support, avoiding legal in the process risks and ensuring business continuity.
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