Use of Offshore Companies in Ecuador

Due to controversies like the Panama Papers or the recent Bahama Leaks, offshore companies or companies based in tax havens have gained a damaged reputation

There is no doubt that offshore companies can be used to place, hide, or manage illegal and criminal assets, but the constitution an even the economic use of this operation does not necessarily make offshore companies an act of money laundering.

The following article written and shared by Mr. Juan Carlos Gallegos Happle, from our member firm ILP Global – Gallegos, Valarezo & Neira, details in depth what offshore companies are – specifically in Ecuador – , what their legal issues and lawful purposes are, in order to clarify that the set up and use of this type of companies does not necessary lead to an illegal or a tax contingency act.

Use of Offshore Companies in Ecuador (PDF in Spanish)