On December 17, 2025, the Very Illustrious Municipal Council of Guayaquil enacted the ORDINANCE REGULATING THE ANNUAL OPERATING LICENSE FOR ESTABLISHMENTS IN THE CANTON OF GUAYAQUIL (hereinafter, the “Ordinance”), which governs the registration, authorization, and control of establishments where economic activities are carried out by natural or legal persons within the canton of Guayaquil.
Below is a summary of the most relevant aspects for obtaining the Annual Operating License for Establishments in the Canton of Guayaquil:
1. Purpose and Scope of Application
The Ordinance aims to regulate the registration, authorization, and control of establishments where economic activities are conducted within the canton of Guayaquil.
It applies to all natural or legal persons operating establishments in the canton, subject to specific exceptions (for example, addresses registered solely for tax purposes, transport units, and kiosks regulated by other ordinances).
2. Annual Operating License for Establishments (L.A.F.E.)
The Annual Operating License for Establishments (L.A.F.E.) is the enabling authorization that allows the conduct of economic activities in the canton of Guayaquil, valid until December 31 of each year. It must be obtained prior to the commencement of activities and renewed by March 31 of the following year.
Cancellation of the license applies in cases of change of activity, change of address, closure of the establishment, or cancellation of the taxpayer registration (RUC). Applications for the license must be submitted exclusively through the official digital channels of the Municipal GAD of Guayaquil. The information declared is presumed truthful, without prejudice to the administrative, civil, and criminal sanctions applicable in the event of false declarations.
For certain specific activities, such as the crushing of stone or aggregate materials, it is mandatory to first obtain the corresponding environmental permit.
3. Applicable Fees
The Ordinance establishes two types of fees:
- The Establishment Authorization and Control Fee, calculated based on the total area of the establishment; and
- The Tourism Establishment Accreditation Fee, applicable to tourism service providers such as lodging, food and beverage services, transportation, travel agencies, convention centers, theme parks, among others. This fee is calculated based on percentages of the Unified Basic Salary (SBU) and the nature of the service.
Exemptions are предусмотрed for qualified artisans, agricultural activities, non-profit institutions, among other cases; however, such entities must still obtain the Annual Operating License for Establishments (L.A.F.E.).
4. Control and Sanctioning Regime
The authority responsible for monitoring and enforcing compliance with the Ordinance is the General Directorate of Justice and Oversight of the Municipal GAD, which may carry out inspections, order temporary or permanent closures, and initiate sanctioning proceedings in accordance with the Organic Administrative Code (COA).
Infractions are classified as minor, serious, and very serious:
- Minor infractions include failure to update the activity or the dimensions of the establishment.
- Serious infractions include operating at a different property or carrying out additional activities.
- Very serious infractions include operating without a license, falsifying information, or conducting activities in prohibited zones.
Sanctions include fines ranging from the amount of the applicable fee up to three times that amount, depending on the severity of the infraction.
5. Final Provisions
The Ordinance repeals prior regulations related to the authorization of establishments and tourism licenses and provides that it will enter into force on January 1, 2026.
A transitional provision grants a deadline until December 31, 2026 for establishments that were carrying out non-permitted activities prior to 2020 to regularize their situation in accordance with the requirements set forth in the new regulations.
We will be pleased to provide further information on this matter. For additional information, please contact us at the following email addresses:
María Rosa Fabara Vera: mrfabara@bustamantefabara.com
Andrés Becdach Fierro: abecdach@bustamantefabara.com
Luis Rivadeneira Pinargote: lrivadeneira@bustamantefabara.com
Tomás Bonilla Sevilla: tbonilla@bustamantefabara.com