Business entities in Paraguay in 2022

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Healy Consultants will assist our Clients with incorporating the entity that best fits their business needs. The most common business entity in Paraguay is the LLC. Foreign companies can also establish a PLC, a Branch Office or a Representative Office in Paraguay.

The Paraguay LLC (SRL)

  • A Paraguay LLC requires at least of 2 shareholders and 1 director who must either be temporarily or permanently resident in Paraguay. The are no minimum nor maximum paid up capital requirements;
  • A corporate contract must be recorded at the Public Registry before the LLC begins operation. The companies are not compelled to register as commercial entities but failure to register may create unlimited responsibility of all the partners toward third parties;
  • The company’s capital is divided into nominal quotas of US$1 and indicated on the contract of incorporation. The capital can also be incorporate in fixed assets or goods.

The Paraguay Public Limited Company (SA)

  • PLC’s in Paraguay must include the denomination “SA” (Sociedad Anonima). A Paraguayan SA requires i) at least two shareholders and one director who must be resident in Paraguay ii) a completely subscribed capital stock and iii) a recorded authorization at the Public Records from the courts; There are no minimum share capital requirements;
  • This particular entity is preferred mostly by foreign investors looking to set up large enterprises in Paraguay.

The Paraguay branch office

  • Foreign companies willing to conduct regular businesses in Paraguay are permitted to establish a branch office in Paraguay. Like the Paraguayan companies, the Branch offices are subject to provisions of the Paraguayan Civil Code regarding the registration and the publication of corporate documents at the Registry of Legal Entities and Associations and the Public Registry of Commerce;
  • At least one director who must be resident in Paraguay and a minimum paid up capital of US$25,000 is required to establish a branch office;
  • The Paraguayan company law allows 100% foreign ownership of branches of foreign companies incorporated in Paraguay.

The Paraguay representative office

This entity, just like the branch office, can be 100% foreign owned and is required to have at least one resident director in Paraguay. A minimum paid up capital of US$25,000 is also required when setting up a representative office.

Table of comparison between Paraguay entities

  LLC PLC Branch office Rep office
How long to set the company up? 10 weeks 12 weeks 12 weeks 10 weeks
How long to open company bank account? 4 weeks 4 weeks 4 weeks 4 weeks
Legal liability? Limited Limited Unlimited Unlimited
Wholly foreign owned? Yes Yes Yes Yes
Minimum capital required? US$1 US$1 US$25,000 US$25,000
File annual tax return? Yes Yes Yes Yes
Tax registration certificate required? Yes Yes Yes Yes
Recommended corporate bank account? Continental Bank National Bank of Argentina Atlas Bank GNB Bank Paraguay
Does our Client need to travel? No No No No
Resident director required? Yes Yes Yes Yes
Resident shareholder required? No No No No
Minimum directors allowed? 1 1 1 1
Minimum shareholders? 2 2 NA NA
Tax identification code (TIN) needed? Yes Yes Yes Yes
Paraguay resident company secretary required? No No No No
Corporate shareholders allowed? Yes Yes Yes Yes
Corporate director(s) allowed? No Yes No No
Paraguay corporate tax rate? 10% 10% 15% 15%
Annual financial statements required? Yes Yes Yes Yes
Statutory audit required? No No No No
Regulated by? Ministry of Industry and Commerce Ministry of Industry and Commerce Ministry of Industry and Commerce Ministry of Industry and Commerce
Allowed to issue sales invoices? Yes Yes Yes Yes
Allowed to sign contracts? Yes Yes Yes Yes
Allowed to import and export goods? Yes Yes Yes Yes
Can rent an office space in Paraguay? Yes Yes Yes Yes
Can buy Paraguay property? Yes Yes Yes Yes
Can own equity in other Paraguay companies? Yes Yes Yes Yes
Total Paraguay business setup costs in Yr. 1 US$12,850 US$14,550 US$15,450 US$13,450
Subsequent annual costs (incl. accounting and tax fee) US$4,400 US$4,400 US$4,400 US$4,400
Sample engagement invoice View invoice PDF View invoice PDF View invoice PDF View invoice PDF

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Contact us

For additional information on our business setup services in Paraguay, please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi