Ecuador vs Peru
Weighted for the selected setup lens
63/100
6-10 weeks
$3,500
Weighted for the selected setup lens
64/100
6-12 weeks
$3,500
Operational Ease updated: Ecuador 63; Peru 64.
What are you setting up?
NavviPal's formation fee in Ecuador is $3,500. In Peru, it's $3,500. Formation takes 6-10 weeks in Ecuador and 6-12 weeks in Peru.
How to decide
Operational Ease scores and category leaders are mechanical outputs from the source facts, not a universal country recommendation. Use the selected lens, then assess the complete legal, tax, banking, payroll, and operating requirements for your structure.
Review Ecuador
Review Ecuador if this market remains in scope after you assess its entity types, local-management requirements, published cost basis, tax rules, banking timeline, and payroll obligations.
View Ecuador guideReview Peru
Review Peru if this market remains in scope after you assess its entity types, local-management requirements, published cost basis, tax rules, banking timeline, and payroll obligations.
View Peru guideSource-backed formation and operating facts
The selected lens changes which source facts appear first and how the five dimension scores are weighted. Category leaders use the displayed calculated scores only.
| Category | Ecuador | Peru |
|---|---|---|
| Corporate tax | Ecuador's corporate income tax (Impuesto a la Renta) is levied at 25% on net taxable income (22% for entities that reinvest profits in productive assets under qualifying conditions). Monthly advance payments (cuotas de anticipo) are required based on the prior year's tax liability. Country guide | Peru's corporate income tax (Impuesto a la Renta de Tercera Categoría) is levied at 29.5% on net taxable income. Monthly advance payments (pagos a cuenta) of approximately 1.5% of net monthly revenue are required throughout the year, with a final settlement in April. Country guide |
| Local management or representation | Ecuador requires companies to have a legal representative who is an Ecuadorian national or holds legal residency. The legal representative also carries personal criminal exposure under COIP Article 242 if IESS social security contributions are withheld from payroll but not remitted within 90 days, separate from ordinary tax liability. NavviPal provides a qualified local legal representative who acts solely on your company's instructions, with indemnity protections in place. Country guide | Peru requires companies to have a legal representative (Gerente General) who is a Peruvian national or legal resident. NavviPal provides a qualified local legal representative who acts solely on your company's instructions with full indemnity protections. Country guide |
| Payroll and employment | Ecuador's labor framework is governed by the Código de Trabajo. Employers must provide a comprehensive package of mandatory benefits in addition to base salary. Country guide | Peru's labor framework is governed by the Decreto Legislativo 728 (LPCL). Employers must budget for mandatory CTS (severance), profit sharing (under certain conditions), and social security contributions. Country guide |
| Formation timeline | 6-12 weeks Country guide | |
| Foreign ownership | Ecuador permits 100% foreign ownership in most sectors. The required Representante Legal must be an Ecuadorian national or hold legal residency, but all economic ownership can be held by foreign nationals. Restrictions apply in strategic sectors designated by the constitution, including petroleum, mining, and public utilities, which require state participation. Ecuador's dollarized economy eliminates USD exchange rate risk for international investors, though dividend and other repatriation payments carry a 5% exit tax (Impuesto a la Salida de Divisas), reduced to 2.5% for productive-sector investment. Country guide | Peru permits 100% foreign ownership in most sectors. All economic ownership can be held by foreign nationals, but a Peruvian national or foreign resident with a valid work visa must serve as Gerente General. Restrictions apply in broadcasting, commercial aviation, and land within 50km of national borders. Foreign investment registration with PROINVERSIÓN is optional but recommended for stabilization agreements and investment recovery guarantees. Country guide |
| Corporate bank-account timeline | 2-4 weeks Country guide | |
| NavviPal formation fee | $3,500 Country guide | $3,500 Country guide |
| VAT or indirect tax | Ecuador's IVA (VAT) is levied at a standard rate of 15% (raised from 12% in 2024) on most goods and services. A 0% rate applies to food staples, medicine, and exports. Monthly IVA declarations are filed electronically through the SRI portal. Electronic invoicing (factura electrónica) is mandatory for all transactions. Country guide | Peru's VAT (IGV, Impuesto General a las Ventas) is levied at 18% (16% IGV + 2% municipal promotion tax, IPM). Monthly IGV declarations are filed electronically through the SUNAT portal. Electronic invoicing (comprobantes electrónicos) is mandatory. Country guide |
| Authorities | SRI (Servicio de Rentas Internas): Internal revenue service responsible for RUC issuance, tax administration, and compliance oversight Country guide | SUNAT (Superintendencia Nacional de Aduanas y de Administración Tributaria): Peru's tax and customs authority responsible for RUC issuance, tax compliance, and customs administration Country guide |
| Entity types | Compañía de Responsabilidad Limitada, Sociedad Anónima (S.A.), Sociedad por Acciones Simplificada (S.A.S.) Country guide | SAC (Sociedad Anónima Cerrada), SRL (Sociedad de Responsabilidad Limitada), SA (Sociedad Anónima) Country guide |
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Services you'll need in both markets
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