Quevedo & Ponce - Noticias Legales
Dissolution, Liquidation, and Cancellation of Commercial Companies in Ecuador
- February 26th, 2025
- Quevedo & Ponce
When a company ceases operations, generates no income, or becomes unprofitable, the most prudent course of action is to close it as soon as possible. This helps to avoid the accumulation of fiscal and administrative obligations with entities such as the Superintendency of Companies, Securities, and Insurance (SCVS) and the Internal Revenue Service (SRI), as well as reducing unnecessary expenses and minimizing the risk of fines or sanctions.
The closure may be necessary for various reasons, such as unsatisfactory results, conflicts among shareholders, lack of operations, or the personal decision to finish the project. The following are the options available perform out this procedure, each one suitable for different circumstances:
- Volontary and early dissolution: This procedure allows the shareholders to decide in advance to close the company. It involves the formal dissolution of the company, liquidation of assets and liabilities, and subsequent cancellation of registration.
- Expedited procedure for voluntary dissolution, liquidation, and cancellation request: If the company has no outstanding debts, this option offers a more agile process, allowing the dissolution, liquidation, and cancellation to be completed in a single administrative act.
- Expedited cancellation: In this case, if the company has no pending obligations and all shareholders agree, a fast and efficient cancellation can be conducted before the Commercial or Corporate Registry, as appropriate.
At Quevedo & Ponce, we offer comprehensive legal counsel for the dissolution, liquidation, and cancellation of companies. Our experts ensure an efficient process, in compliance with current regulations, tailored to meet the specific needs of each client.
Más Artículos
Corporate Transformation and Sports Joint Stock Companies: Effects of the Constitutional Court Decision that Invalidated the Organic Law of National Solidarity
The Constitutional Court of Ecuador declared the total unconstitutionality of the Organic Law of National Solidarity, determining that it was enacted in violation of the principle of unity of subject matter and the ordinary legislative procedure. This decision nullifies the obligations imposed upon Simplified Stock Companies (S.A.S.) and Sports Joint Stock Companies (S.A.D.), restoring the previous regulatory framework and reaffirming both the supremacy of constitutional review and the need of maintaining normative coherence within the Ecuadorian legal system.
Mediation: An effective and legal way to resolve conflicts in Ecuador
Mediation is a conflict resolution process whereby the parties, assisted by a neutral third party called a mediator, seek to reach a voluntary agreement on a negotiable matter, in an extrajudicial and definitive manner. This mechanism promotes fast, confidential, and fair solutions that have the same legal validity as a final judgment, fostering dialogue and a culture of peace in Ecuador.
New Rules for Communal and Savings Funds: A Framework of Control and Transparency
The Superintendence of Popular and Solidarity Economy (SEPS) has established new rules for the incorporation, governance, and liquidation of communal and savings funds, effective as of November 20, 2025. This regulatory framework strengthens the transparency, monitoring, and financial security, ensuring that these community-based entities can manage resources, grant loans, and contribute to the development of the popular and solidarity economy.
Relationship between Customs (SENAE) and Intellectual Property (SENADI) in Ecuador
Customs and the National Service for Intellectual Rights work together to protect legitimate trade and prevent counterfeiting, smuggling, and piracy. Through the Customs Intellectual Property Registry, trademark, patent, and copyright holders can register their creations to strengthen protection at the border.
New Law Against Unfair Competition in Ecuador: Key Points and Scope
The new Organic Law on the Regulation Against Unfair Competition aims to ensure a fairer and more transparent Ecuadorian market by sanctioning unfair practices such as deceptive acts, unlawful imitation, unfair comparisons, and the misappropriation of trade secrets.
