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Investment & Legal Framework
is presented before a civil judge, who will order the extract
to be published in a newspaper.
Later, the judge will order the inscription of the bylaws in
the Commercial Registry and, if there are property taxes,
in the Property Registry (Registro de la Propiedad ).
JOINT VENTURES
Joint ventures are customarily formed by two
corporations. The rights of the partners are limited to
obtaining an accounting of funds that have been paid in
and an accounting of losses or earnings obtained by the
end of the contract.
OTHER TYPES OF COMPANIES
Other types of companies include the mixed economy
company. In such a company, both private and public
capital is used. The public sector funds may come from
the state, municipal, or provincial governments or from
judicial representatives of either the public or semipublic
sector.
The dispositions imposed on corporations generally
apply to mixed economy companies as well. When the
public sector investment exceeds half of the capital in a
company, a director from this sector acts as president
of the board of directors. Private shareholders may later
acquire the
public-sector investment. When this happens, the
company may continue to function in the form of a
corporation.Anymodification of the bylaws or other action
or transaction necessary to achieve this transformation is
free of any municipal or special tax.
Another type of company is the holding company. A
holding company buys shares from other companies,
with the purpose of gaining control through shareholder
relationships, performance, administration, credit
responsibility, or results, and then forms a business group.
Companies formedwith this objective are obliged tomake
and maintain individual financial statements for control
purposes, for profit distribution among employees, and
for the corresponding tax payment. Also, the companies
must fulfill their liabilities with the public treasury and the
pertaining comptroller bodies on the basis of their financial
statements.
Regulations relating to employment are envisaged in
the Employment Code.
Contracts There is a wide variety of employment
contracts depending on the nature of the activity
Appearance
- For dress, formality increases as you move inland.
Inland, business dress should be conservative. Men
should wear dark suits and women should dress
conservatively and modestly -- a suit or dress
- Ecuadorians stand closer together when conversing
than NorthAmericans
- It is considered impolite to yawn or point at others in
public
- Nervous, repetitive movements (toe tapping, knee
jiggling, thumb twiddling, and so forth) should be
minimized -- Ecuadorians find them annoying
EMPLOYMENTAND LABOR
RELATIONS
BUSINESSETIQUETTE INECUADOR
performed by the employee and requirements of the
employer. An employment subordinated relationship
existswhen an employee renders his/her serviceswithin
a specific schedule, at pre-established premises and
in exchange of a wage agreed on between employer
and employee. Any such contract starts with a trial
term lasting three months. Within said trial term, either
employer or employee may finalize the employment
relationship in accordance with their interests.
The minimum employment term is of one year. A fixed
term employment contract may not exceed from two
years.
Following these two years the employment contract will
be deemed to have an indefinite term and may only
terminate in accordance with the provisions stipulated
in the Employment Code, with the corresponding
indemnities.
The following employment contracts are allowed:
specific work, temporary and occasional, domestic
service, apprenticeship, craftsmanship, piecework,
among others.
Working Hours, Holidays, and Vacations Normal
working hours are eight hours per day, forty hours
per week. However, working time may be increased.
Overtime must be paid at a rate of between 120% and
200% of the worker’s normal rate. In offices, a five-day,
forty-hour week is the norm. Regular office hours are
from 8:30A.M. to 13:00A.M. and from 2:30 P.M. to 6:00
P.M.
Generally, nine paid public holidays are given each
year. Employees are entitled to fifteen days of paid
vacation per year. An additional day per year is granted
after five years of continuous employment with the
same employer.