Business entities in Paraguay in 2023

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