South America

Company Registration

Bordered by Argentina, Bolivia, and Brazil, Paraguay is a landlocked country located at the heart of South America. Home to around 6.8 million population, Paraguay has a small but fast-growing open economy with strong demand for U.S. manufactured products, and the potential for continued economic growth.

Why Setup Business in Paraguay?

Over the last decade, Paraguay has seen its Danish export increased by almost 250%. Paraguay has registered a low debt-to-GDP of 23.8%, underpinned by the stable economic environment. The overall tendency in the GDP growth (in Paraguay) over the last ten years has been upward going.

Company Registration in Paraguay 🚀

1. The general documents/processes needed:
  • Create the by-laws of the company
  • Obtain the documents of incorporation
  • Obtain a certificate from a relevant government official (or the Chamber of Commerce) in the country of origin to certify the legitimacy of the head office in the country of origin.
2. Details from the Board of Directors’ meeting:
  • States the purpose to establish the company.
  • Assigns nominal capital to the company (depending on the business type).
  • Setup a fiscal company address.
  • Designates and provides details of the person (or persons) in business management.

Sociedad Anónima (S.A)

Sociedad Anónima (S.A, or ‘Corporation’ in English), just like many Latin American countries, is the most common business model for larger companies in Paraguay.
Basic requirement:
  • Must have a minimum of two shareholders where one of them must be of Paraguayan national.
  • All corporations must have the initials S.A in their company name.
  • Must obtain a recorded authorization from the Public Records from the courts
  • No minimal capital required to form most companies (just 1$USD). A minimum of $10,000 is needed for export-related companies.

Sociedad de Responsibilad Limitada (SRL)

The second most common company is the SRL (or the Limited Liability Company (LLC)). It is very popular because this business model offers a lot of protection for the investor’s contribution.
Basic requirement:
  • Must have a minimum of two shareholders where one of them must be of Paraguayan national.
  • All companies must have the initials S de RL in their company name.
  • No minimal capital needed.
  • The process usually completed within 10-12 weeks.

Steps of company registration in Paraguay

  1. Run a name check to check the uniqueness of your proposed company’s name.
  2. Draft the company’s certificates (which must be signed by a lawyer).
  3. Notarize the company’s deeds at a Notary’s office.Submit the registration papers with the single access window agency (SUAE).
  4. You have to submit all documents for revision or approval where you will receive an identification number.
  5. File documents like the bylaws or and the company formation certificates at the Treasury Attorney Office.
  6. Obtain a taxpayer’s registry number after applying for tax registration at the Ministry of Finance.
  7. The final step is the publication of an extract of the company’s regulations in the Official Gazette as well as in a local newspaper.