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
Can property lent under a commodatum agreement be acquired by prescription?
A commodatum is a contract through which a person lends property free of charge for another person to use, with the obligation to return it. Under the Ecuadorian legal system, the borrower does not acquire possession but only mere holding of the property, which means it cannot be acquired through acquisitive prescription unless a proven interversion of title occurs.
Processing of Proposed Laws Classified as Urgent Economic Matters
Proposing urgent economic bills is one of the powers of the Executive Function; however, these must be submitted to the National Assembly for approval, modification, or rejection. In accordance with the Constitution and the Organic Law of the Legislative Function, a failure to issue a ruling results in the immediate enactment of the project by operation of law.
Fast Fashion in Ecuador: Legal Protection, Boundaries, and Emerging Challenges in the Creative Industry
The impact of fast fashion on the Ecuadorian intellectual property system, explaining which elements of fashion can be legally protected, which are not eligible for protection, and what the main challenges are for designers and brands when facing potential infringement.
Piercing the Corporate Veil in Ecuador: When limited liability no longer protects shareholders
Limited liability is one of the main advantages of incorporating a company. However, in Ecuador this protection is not absolute. Courts may apply the doctrine of piercing the corporate veil and extend liability to shareholders or directors when the company has been misused. This has become increasingly relevant in commercial litigation and debt recovery cases.
Nice Classification: Summary of Goods and Services for Trademark Registration
The Nice Classification constitutes the cornerstone of the international system used to organize goods and services for trademark registration purposes and is administered by the World Intellectual Property Organization (WIPO). The system divides goods and services into 45 classes and serves as the technical foundation for determining the scope of trademark protection. Its proper application is essential to ensure adequate protection and to avoid limitations or potential conflicts.
