Send a request for a call
Company formation in Paraguay
Comprehensive assistance in company formation, including banking services
How to form a company in Paraguay
1
Document submission
You submit to us necessary documents of the future founders and directors for the purposes of company formation in Paragua and opening a bank account in Paraguay
2
Payment of services
Payment of our services for company formation in Paraguay and/or bank account assistance in Paraguay
3
Company formation
We register a new company in Paraguay for you. Upon completion of the registraion corporate documents are either delivered to you or submitted to a bank for the subsequent opening of a bank account
4
Bank account opening
In case you request an assistance with a bank account, we arrange an interview at the bank for you, inform you about the date of the visit and accompany you on your way to the bank. After the bank account is opened and active you receive corporate documents of the formed company as well as the access to the bank account
Key aspects to consider prior to incorporating a company in Paraguay
You can incorporate a limited liability company in Paraguay and open a corporate bank account remotely.
1. Founders that would like to register a company in Paraguay can either be resident or non-resident in Paraguay. Founders can be either individuals or legal entities.
2. A resident or a non-resident individual can be a company director in Paraguay. However, it is required to register a company in Paraguay with at least 1 resident director and a resident legal representative.
3. One individual can register a company in Paraguay and simultaneously be a shareholder and a director in this company if such company is registered as a SRL (a limited liability company).
4. There is no requirement for creating substance in Paraguay - no need to hire local employees or rent an office in order to register a company in Paraguay or to conduct business in Paraguay.
5. Minimum share capital that is required to register a company in Paraguay as a SRL (a limited liability company) is not established.
6. Information about company founders, shareholders and directors after company registration in Paraguay is complete is publicly available in the state corporate register.
7. Only Paraguay-source income is subject to corporate income tax, which includes capital invested abroad.
8. We can help you register a company in Paraguay, as well as open a corporate bank account remotely, on the basis of a power of attorney.
2. A resident or a non-resident individual can be a company director in Paraguay. However, it is required to register a company in Paraguay with at least 1 resident director and a resident legal representative.
3. One individual can register a company in Paraguay and simultaneously be a shareholder and a director in this company if such company is registered as a SRL (a limited liability company).
4. There is no requirement for creating substance in Paraguay - no need to hire local employees or rent an office in order to register a company in Paraguay or to conduct business in Paraguay.
5. Minimum share capital that is required to register a company in Paraguay as a SRL (a limited liability company) is not established.
6. Information about company founders, shareholders and directors after company registration in Paraguay is complete is publicly available in the state corporate register.
7. Only Paraguay-source income is subject to corporate income tax, which includes capital invested abroad.
8. We can help you register a company in Paraguay, as well as open a corporate bank account remotely, on the basis of a power of attorney.
Cost of services
Formation of a SRL
Timeline - 45 business days
Timeline - 45 business days
Send a request
for company formation
Advantages of incorporating a company in Paraguay
Attractive business-environment
- Paraguay is a member of the MERCOSUR agreement with Argentina, Brazil and Uruguay which established a free market between these states. This free market provides multiple benefits to companies registered in Paraguay
- Multiple active free trade agreements: ALADI, SELA, ASPA
- Foreign investment promotion
- Logistics center in the region
- Vast natural resources
- Well-developed infrastructure
- Low inflation rate
Stability and security
- Political stability
- Secure legal and justice systems
- Comprehensive protection of property rights
- Comprehensive personal security
- Investment protection
Tax benefits
- Relatively low corporate income tax rate of 10% among South America states
- Only Paraguay-source income is subject to corporate income tax, which includes capital invested abroad
- Multiple free trade zones
- Multiple double tax treaties
No foreign exchange controls
- Paraguay state regulations do not impose foreign exchange controls. Individuals and business entities, either resident or non-resident in Paraguay may open bank accounts in local banks in any currency
Ease of establishing and doing business
- No minimum share capital requirement to register a company in Paraguay as a SRL
- Remote company formation and remote banking assistance in Paraguay is available for any foreign individuals
- 100% foreign ownership of a company in Paraguay is available
More about Paraguay
Paraguay is located in the southern central region of South America. Paraguay has a territory of 406,796 square kilometers. Paraguay borders Argentina, Bolivia and Brazil. The capital city of Paraguay is Asunción, the largest city and the location of key government institutions.
Population of Paraguay amounts to around 7,36 million people.
Population of Paraguay amounts to around 7,36 million people.
Official currency of Paraguay is Paraguayan guarani (PYG).
Paraguay is a market economy that is highly dependent on agriculture. Paraguay has vast arable land and hydroelectric power.
In terms of foreign trade, the largest goods contributing to the country's export are soy, soybeans, wheat, maize, corn, rice, meat products, electrical energy, solid residues, insulated wire, cable, insulated electric conductors.
Imports of Paraguay consist of energy, petroleum, oil, natural gas, electrical machinery and equipment, cars and vehicles, electric conductors, consumer goods, medicaments, mineral or chemical fertilizers, rubber.
Primary trading partners of Paraguay are Chile, Argentina, Brazil, Uruguay, Bolivia, Mexico, the USA, India, China, Singapore, Germany, Japan, South Korea, Switzerland.
The GDP of Paraguay grew by 4.2% in 2021 and amounted to USD 39 billion. Tertiary sector makes up 48% of the GDP of the country, followed by industry sector at 34% and agriculture at 11%.
Paraguay is a market economy that is highly dependent on agriculture. Paraguay has vast arable land and hydroelectric power.
In terms of foreign trade, the largest goods contributing to the country's export are soy, soybeans, wheat, maize, corn, rice, meat products, electrical energy, solid residues, insulated wire, cable, insulated electric conductors.
Imports of Paraguay consist of energy, petroleum, oil, natural gas, electrical machinery and equipment, cars and vehicles, electric conductors, consumer goods, medicaments, mineral or chemical fertilizers, rubber.
Primary trading partners of Paraguay are Chile, Argentina, Brazil, Uruguay, Bolivia, Mexico, the USA, India, China, Singapore, Germany, Japan, South Korea, Switzerland.
The GDP of Paraguay grew by 4.2% in 2021 and amounted to USD 39 billion. Tertiary sector makes up 48% of the GDP of the country, followed by industry sector at 34% and agriculture at 11%.
International business expands to Paraguay and incorporates a company in Paraguay primarily in public-private infrastructure projects, financial services, industrial sector, agro-industrial sector, green energy, pharmaceutical sector, biotechnology industry.
Restricted for foreign entrepreneurs are the following sectors:
Restricted for foreign entrepreneurs are the following sectors:
- national defense
- television
- telecommuncation and radio
- air transport
- operational activity of airports
- postal services.
- Corporate income tax - 10%. Tax returns are filed on an annual basis
- Dividend withholding tax - 15% for payments to non-residents, 8% for payments to residents
- Interest withholding tax - 4.5%
- Royalties withholding tax - 15%
- Capital gains tax - 10%
- VAT - Standard tax rate 10% or a reduced rate 5% or tax exempt. Tax returns are filed on a monthly basis for the majority of commercial enterprises
- Personal income tax - from 8% up to 10%.
Apart from such traditional business entity types as a limited liability company (Sociedad de Responsabilidad Limitada - SRL) and a public limited company (Sociedad Anónima - S.A.), corporate law in Paraguay offers to incorporate a company in Paraguay as:
1. General partnership (Sociedad Colectiva - S.C.)
2. Limited partnership (Sociedad en Comandita Simple - S. en C.S.)
3. Partnership limited by shares (Sociedad en Comandita por Acciones - S. en C. por A.)
4. Simplified Corporation (Empresa por Acciones Simplificadas - E.A.S.)
5. Branch of a foreign company (Sucursal)
To receive a detailed description of the company formation procedure in Paraguay and information about documents necessary for company formation in Paraguay please contact our experts.
1. General partnership (Sociedad Colectiva - S.C.)
2. Limited partnership (Sociedad en Comandita Simple - S. en C.S.)
3. Partnership limited by shares (Sociedad en Comandita por Acciones - S. en C. por A.)
4. Simplified Corporation (Empresa por Acciones Simplificadas - E.A.S.)
5. Branch of a foreign company (Sucursal)
To receive a detailed description of the company formation procedure in Paraguay and information about documents necessary for company formation in Paraguay please contact our experts.
Send a request for company formation in Paraguay
We will contact you within 1 minute
© Prime International Legal Services, 2023.
SERVICES
CONTACT US
Address:
128 City Road,
London, EC1V 2NX
Phone: +44 20 8157 4037
Email: request@pil-services.com
128 City Road,
London, EC1V 2NX
Phone: +44 20 8157 4037
Email: request@pil-services.com
