Ecuador

Financial Reporting Obligations for Companies in Ecuador

1. Registry for Submitting Financial Statements

In Ecuador, companies are required to submit their financial statements (annual reports) to the Superintendencia de Compañías, Valores y Seguros (Superintendency of Companies, Securities, and Insurance) (https://www.supercias.gob.ec/). Submissions must be made electronically through the official portal of the Superintendence.

2. Legal Forms Obliged to Publish Financial Statements

Legal forms in Ecuador that are obliged to submit and publish their financial statements (annual reports) include:

  • Compañía Anónima (C.A.)
    Translation: Corporation
    Notes: Must submit annual financial statements to the Superintendencia de Compañías, Valores y Seguros.
  • Compañía de Responsabilidad Limitada (Cía. Ltda.)
    Translation: Limited Liability Company
    Notes: Must submit annual financial statements and, depending on size, may require an audit.
  • Sociedad Anónima (S.A.)
    Translation: Joint Stock Company
    Notes: Required to submit annual financial statements and subject to audit.
  • Compañía de Economía Mixta (CEM)
    Translation: Mixed Economy Company
    Notes: Obliged to submit financial statements and undergo audits.
  • Compañía en Comandita Simple (Cía. en Com. Simp.)
    Translation: Simple Limited Partnership
    Notes: Must submit annual financial statements, subject to audit if thresholds are exceeded.
  • Compañía en Comandita por Acciones (Cía. en Com. por Acc.)
    Translation: Partnership Limited by Shares
    Notes: Must submit financial statements and is subject to audit if thresholds are met.
  • Cooperativa
    Translation: Cooperative
    Notes: Must submit financial statements and be audited if they exceed specific thresholds.
  • Compañía Holding (Holding Company)
    Translation: Holding Company
    Notes: Required to submit consolidated financial statements and be audited.

Legal Forms Not Obliged to Publish Financial Statements:

  • Empresario Individual (Sole Proprietor)
    Translation: Sole Proprietorship
    Notes: Exempt from publishing financial statements but must maintain financial records for tax purposes.
  • Sociedad Civil (Civil Society)
    Translation: Civil Society
    Notes: Exempt from publishing financial statements but must keep financial records for tax purposes.
  • Sociedad de Hecho (De Facto Partnership)
    Translation: Informal Partnership
    Notes: Not required to submit financial statements but must maintain financial records for tax purposes.
  • Asociación
    Translation: Association
    Notes: Exempt unless it engages in economic activities above certain thresholds.
  • Fundación
    Translation: Foundation
    Notes: Exempt unless it engages in business activities exceeding specific limits.
  • Consorcio
    Translation: Consortium
    Notes: Not required to submit annual financial statements but must keep records for contractual and tax purposes.
  • Sucursales de Compañías Extranjeras (Foreign Branches)
    Translation: Branches of Foreign Companies
    Notes: Subject to reporting according to Ecuadorian regulations and parent company’s requirements.

3. Companies Requiring Audited Financial Statements

In Ecuador, companies must have their financial statements audited if they meet specific conditions outlined in the Ley de Compañías (Companies Act) and the Normas Internacionales de Auditoría (International Auditing Standards). Companies generally need to be audited if they meet certain thresholds regarding turnover, total assets, or number of employees.

Legal Form Audit Rule Criteria
Compañía Anónima (C.A.) Mandatory audit if thresholds met Turnover > USD 5m
Assets > USD 2.5m
Employees > 50
Compañía de Responsabilidad Limitada (Cía. Ltda.) Audit required if thresholds met Turnover > USD 5m
Assets > USD 2.5m
Employees > 50
Sociedad Anónima (S.A.) Audit always required No thresholds
Compañía en Comandita Simple Audit required if thresholds met Turnover > USD 5m
Assets > USD 2.5m
Employees > 50
Compañía en Comandita por Acciones Audit required if thresholds met Turnover > USD 5m
Assets > USD 2.5m
Employees > 50
Cooperativa Audit required if thresholds met Turnover > USD 5m
Assets > USD 2.5m
Employees > 50
Compañía Holding Mandatory audit Consolidated financial statements must be audited
Sucursales de Compañías Extranjeras Audit depends on parent company obligations Follows parent rules + local thresholds

4. Local Stock Exchange and Financial Statements Publication

  • Bolsa de Valores de Quito (Quito Stock Exchange) (https://www.ccbvq.com.ec/): listed companies must publish financial statements per exchange rules.

5. Deadline for Submitting Financial Statements

The deadline is typically within 3 months after the end of the fiscal year (March 31). Listed companies may have stricter deadlines.

6. Companies Submitting Partial Financial Statements

Smaller companies (micro and small enterprises) below thresholds may submit simplified financial statements.

7. Consequences for Late Submission of Financial Statements

Failure to submit on time results in fines between USD 200–5,000. Continued non-compliance may lead to suspension of operations or deregistration.

8. Requirements for Foreign-Owned Branches and Newly Established Companies

Foreign-owned branches must comply with both Ecuadorian and parent company rules. Newly established companies must file by the end of their first fiscal year.

Sources

Source Link
Superintendencia de Compañías, Valores y Seguros https://www.supercias.gob.ec/
Ley de Compañías (Companies Act) https://www.gob.ec/supercias/tramites/ley-companias
Bolsa de Valores de Quito (Quito Stock Exchange) https://www.ccbvq.com.ec/
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