Company registration in Paraguay

Company registration in Paraguay is relevant again. In 2024, foreign direct investment (FDI) in the country showed positive dynamics. In the second quarter, the figures increased by $22.8 million, and in the third quarter they increased by another $13.3 million. The 2023 recession has been overcome, the volume of foreign investment is increasing, and at a rapid pace.

The energy sector attracted $1.202 billion in speculation, showing an 8-fold increase compared to previous years. The main project is the Oxsa plant for the production of renewable diesel fuel.

Agribusiness brings the country $8.5 billion in export revenue, accounting for more than 40% of all supplies. Paraguay is one of the largest exporters of soybeans and beef. Transnational giants role in the sect: ADM, Cargill, Bunge. The manufacturing sect received $241 million in speculation. Speculations are directed to metallurgy, chemistry and packaging. Affordable electricity reduces costs, but the pace of founding companies in Paraguay is slow due to a shortage of skilled workers.

The financial sector accounted for 15% of all foreign speculation. Fintech and remittance schemes are actively advancing in the polity. Statutory conditions are improving, but the growth of the sect is slowed by currency restrictions.

Business support programs

After registering a company in Paraguay, speculators can take vantage of assess aids and bureau support. Law No. 60/90 stipulates aids for importing equipment with assess exemptions for large speculations. The National System for Supporting Small and Medium-Sized Enterprises (SINAMIPYMES) proffers subsidies with preferential loans. The Public-Private Partnership (APP) program allows participation in facilities schemes. Paraguay also has free opulent zones that stipulate assess options for exporters. The option of the optimal regime contingent on the scale of the venture, the capital structure and the scope of activities.

Law No. 60/90: Investment incentives for starting a Paraguayan business or upgrading an existing one

Foreign speculators in Paraguay enjoy tax incentives, especially in industry. Law No. 60/90 exempts from VAT and customs duties on the import of equipment, raw materials and supplies, if they are not subjugated to excise taxes or trade limitations. For speculations of at least US$13 million, projects are excluded from assess on profits and bonds for up to 10 eons from the date of launch (not applicable to offshore companies).

To take vantage of the rewards, one must register a company in Paraguay and select a priority opulent sect. These include:

Industrial production and processing of raw materials.

• Industrial production and processing of raw materials.
• Agriculture and forestry.
• Mining and infrastructure.
• Tourism and services sector.

Investments must come from a country with standard taxation (offshore will not do), create jobs, promote export growth or introduce new technologies. Also, to participate in the tax incentive program under Law No. 60/90, a higher education degree in economic sciences or a certificate of completion of a course in the development of speculation projects is required.

Please note: the program provides incentives not only at the stage of business registration in Paraguay, but also for the modernization of existing projects. Speculators can take advantage of tax exemptions when upgrading production facilities or implementing technologies that contribute to increased efficiency.

• Applicant's identity card.
• A diploma of higher education in economic sciences or a certificate of completion of a course in speculation project development.
• Professional municipal patent (issued during the process of registering a Paraguayan company).
• Tax conformance certificate.
• Registration in the Register of Consultants under Law 60/90.

The requisition is handed in through the Unified Export System (VUE) on the official website www.vue.org.py. The National Investment Commission is liable for the verification, and its decision is made within 30 days of the submission of the full package of indentures. After receiving the rewards, speculators are imperative to submit an annual report on the implementation of the project and its opulent impact. Failure to conform with the requisites leads to the cancellation of rewards and the return of previously granted assess exemptions.

National System of Support for Small and Medium-Sized Businesses (SINAMIPYMES)

The Ministry of Industry and Trade (MIC) program designed for foreigners. When registering a company in Paraguay, you can get the following rewards:

• Financing: Subsidies up to 70% of equipment upgrades and technological improvements. Credit lines with preferential interest rates are available through state-owned banks.
• Training: free courses on business management, marketing, and digitalization of processes. Classes are available on the MIC platform and include programs for aspiring entrepreneurs and experienced businessmen.
• Access to markets: priority participation in public procurement, where up to 30% of contracts are reserved for SMEs.

To participate, you must open a business in Paraguay and meet the SME criteria: annual revenue of up to US$5 million and no more than 100 employees. The entrepreneur must register on the official MIC platform (SINAMIPYMES), obtain an SME certificate and update information on revenue and number of employees. After that, you can apply for subsidies, loans, participation in training courses and other initiatives through the official platform.

APP (Public-Private Alliance) Program

After registering a company in Paraguay, foreign speculators can participate in the construction and operation of facilities. Including transport infrastructure (roads, ports, airports), energy (power plants, networks) and social complexes (hospitals, schools). Participants receive a guaranteed income through a share of the profits from the operation of facilities, fixed compensation for speculations in certain risks (for example, changes in legislation) and tax rewards, including exemption from VAT on the import of equipment for the implementation of the project. Contracts are concluded for a period of 10 to 30 years with the possibility of extension. Unique conditions are offered for each project.

All types of statute entities are eligible to participate. In addition to registering a company in Paraguay, it is necessary to prove sufficient assets, technical qualifications (experience in similar projects) and conformance with the statute requisites specified in the tender documentation. Available projects are published on the website of the Ministry of Public Works and Communications (MOPC).

Registration of a Paraguayan company in a special zone

There are four primary free zones (Zona Franca) in Paraguay:

1. Global del Este – centered on exchange, warehousing and coordination exercises. Appropriate for companies included in the trade of products and conveyance of products.
2. Trans Exchange – specializes in fabricating and trade. Here you can enroll in a Paraguayan company in the nourishment, chemical and material industries.
3. de Encaranción – a zone for businesses related to the agro-industrial complex and preparation of crude materials. Perfect for exporters of agrarian products.
4. Internacional de Carapeguá – creates high-tech and administrations divisions, counting IT, gear repair and support. Pulls in companies working in the worldwide market.

When enrolling a Paraguayan company in the FEZ, the business person is absolved from all charges on benefits, counting national and civil. Trade salary is subject to a single charge (0.5%). Imports of gear and crude materials for work in the zone are absolved from obligations. Operations in the zone are not subject to VAT. Profits, eminences and other settlements to third nations are moreover absolved from levies.

To conclude a contract with the free zone concessionaire, it is essential to give a commerce arrangement with the volume of hypothesis, sorts of exercises and dispatch dates. The exercises must compare to the profile of the zone: commercial, mechanical or benefit. It is fundamental to affirm budgetary dissolvability and the nonappearance of confinements, such as insolvency or seizure of property. agreements on the enlistment of the company in Paraguay and a dynamic charge number (RUC) are required. The contract gives access to the foundation and administrations of the zone.

Applications are submitted by means of Marangatu, an electronic framework for recording affirmations, paying charges and overseeing assess reports. It is fundamental to connect an assention with the concessionaire, data about the company's charge status and a list of bank accounts. Within 10 working days, the charge specialists issue an electronic certificate, which must be posted in the company's office.

Organizational forms when registering a company in Paraguay

There are diverse trade groups accessible in the nation. SRL is reasonable for little and medium-sized businesses, SA is for large-scale ventures including capital, Sociedad Basic is for basic and dependable affiliations. Sucursal and Oficina de Representación are chosen by outside organizations to enter the showcase. Let's consider the choices in more detail.

Sociedad de Responsabilidad Limitada (SRL, LLC)

The least difficult and most prevalent arrangement of a lawful substance. To enlist a company in Paraguay, 2 individuals are sufficient, there is no least capital edge, and it is not essential to build up complex structures (like a board of chiefs) for administration. Examiners hazard as it were their stores, and their greatest number is constrained to 25 participants.

In Paraguay, little and medium-sized businesses keep records of their operations and record yearly money related articulations in a rearranged frame. Universal bookkeeping measures (IFRS) are not obligatory, charge returns are negligible, and nitty gritty detailing is not required.

Distribution of benefits and misfortunes is corresponding to the offers of the members, but the constitution may give for other alternatives, counting a brief suspension of wage dispersion. Particular conditions are settled in the constitution some time recently spearheading a commerce in Paraguay, they can be changed afterward (with the assent of all co-owners).

SRL members autonomously decide what the administration demonstrates. Specialists can be assigned to one individual for speedy decision-making or dispersed among all for more noteworthy openness. Voting rules are settled in the constitution: from a basic larger part to extraordinary conditions for vital issues. The transfer of offers is directed by inner rules, counting the plausibility of free exchange or programmed redistribution. The enactment gives adaptable components for customizing forms when enrolling a company in Paraguay.

Anonymous Sociedad (SA, JSC)

The shape permits drawing in capital without credit commitments. Speculations are gotten through open or closed deals of offers. The number of members is boundless, resources are permitted to be claimed by thousands and tens of thousands of individuals. The proprietor of offers can offer them to other individuals at any time, this does not require transactions or contracts.

High liquidity and boundless adaptability make SA the most prevalent arranger among expansive businesses and organization theorists. The fundamental contentions against enlisting a commerce in Paraguay are the complex administration structure and the tall fetched of keeping up a JSC.

SA requires a board of chiefs mindful of vital courses and responsible to bondholders. It requires a multi-tiered framework where each activity is subject to endorsement, which moderates down decision-making. Yearly gatherings of bondholders are required and require strict strategies, counting notices, voting, and minutes, which include time speculation.

However, the complex structure moreover gives points of interest. Choices are made collectively, dispensing with the intemperate impact of one individual. The hazard of blunders and manhandle is diminished. Strict detailing and administration rules avoid clashes between proprietors and administration. And settled decision-making forms and conventions ensure the interface of all participants.

SAs are costly to keep up due to required examining and distribution of budgetary information. The strategies require contracting qualified bookkeepers, attorneys and experts to acclimate with universal benchmarks. And you moreover require to pay administration, back expenses and other corporate exercises. The development of the company leads to an increment in authoritative costs, which makes the shape unacceptable for little businesses.

The least authorized capital for enlisting an SA company in Paraguay is approximately 6,800 US dollars (20 least pay rates). For money related education (banks, protection companies) the limit is altogether higher. Open firms are overseen through two primary bodies: the bondholders' assembly and the board of chiefs.

The bondholders' assembly is the most noteworthy body where bondholders choose key issues. They vote for the dispersion of benefits, changes in the authorized capital, and the arrangement of chiefs. The all inclusive voting run the show is utilized to make choices: more offers - more votes.

The board of chiefs is a gather of chosen authorities mindful for day-to-day administration. They direct the execution of shareholder choices, set procedure, and contract administration. The board acts as a middle person between the proprietors and the working portion of the company.

The shape is appropriate for expansive ventures that require noteworthy theory and the inclusion of key accomplices. It is in demand in commerce, where it is vital to set up participation with huge players and guarantee steady financing. But compact ventures ought to seek other choices for commerce enrollment in Paraguay.

Empresa por Acciones Simplificadas (EAS, JSC)

A venture with the right to issue offers and negligible liabilities. Not at all like SA, it can work without a board of chiefs, yearly bondholders' gatherings, distribution of money related explanations and review. There is no settled capital, and company enrollment in Paraguay can be done with a negligible budget.

EAS offers cannot be sold freely, but they can be exchanged to bondholders or theorists without the assent of the other co-owners. This makes it much less demanding to discover extra capital. For example, to raise $50,000, the originator can issue offers for the same sum, whereas keeping up control and without changing the structure of the company. In an SRL, this would require extra commitments from the members or their assent to the presentation of an unused individual, and in an association, consistent approval.

The shape permits for the issue of offers with different rights:

• Regular: awards the right to vote and get profits. The standard alternative when enrolling a company in Paraguay.
• Limited voting rights: proprietors as it were to impact certain decisions.
• Non-voting: with the right to share in benefits, but without interest in management.
• Fixed salary: give a foreordained sum of profits, in any case of the company's profits.

As well as favored offers (with need rights to benefits) or conventable offers (they can be changed over into other sorts of resources if certain conditions are met). This structure permits for adaptable alteration of bondholders' rights when enrolling a company in Paraguay or after the dispatch of the enterprise.

The most extreme number of EAS members is 50 individuals. The closed nature of the structure guarantees that control remains in a limited circle of authors. Be that as it may, the little number of co-owners and restricted liquidity of offers complicates trade scaling. This frame is appropriate for companies that need to combine the adaptability of a joint-stock company with the effortlessness and cost-effectiveness of little businesses.

Sociedad Straightforward (Partnership)

An affiliation of two or more business people without shaping a legitimate substance. The frame gives total flexibility in making and overseeing a commerce. Members autonomously decide who makes choices, how pay and obligations are dispersed. Brief alteration of offers and parts is conceivable. For illustration, one of the members can diminish obligations whereas holding the right to benefit, or deny profits in trade for decreased liability.

This is the most adaptable alternative for enlisting a commerce in Paraguay. Issues are chosen consistently, by a basic lion's share, or designated to one individual. Accomplices themselves set up the strategy for taking off the commerce or including unused members. The frame permits you to adjust to changes without including attorneys or inspectors to rework indentures.

When beginning a trade in Paraguay, it is vital to build up a strife determination method in development. Differences between members moderate down key choices, income dispersion, or the consideration of modern accomplices. The nonappearance of a common director makes operational arranging troublesome: members may contend over budgets, needs, or terms of exchanges with clientele. Irregularity too complicates changes in the composition of co-owners if the strategy for the exit or promotion of modern individuals is not set up in advance.

After spearheading a company in Paraguay, its members are obligated for obligations with their claim property. Leasers can collect reserves from any accomplice, indeed if he or she is not included in administration. When the sum of obligation surpasses resources, there is a hazard of losing the trade and individual property: lodging, accounts, valuables.

Sociedad Basic cannot draw in exterior examiners or issue offers. Any deal of offers requires consistent endorsement from the co-owners. The fundamental source of capital remains the individual theories of the accomplices or credits, which too require collateral from individual property. This complicates scaling the trade and finding funds.

Registering a company in Paraguay (Sociedad Basic) permits you to begin a trade with a modest budget, without complicated methods and statute limitations. The frame is helpful for family and inviting businesses with a tall level of belief. In an organization, you can openly decide the arrangement of dissemination of benefits and duties, adjusting the trade to current needs. This is a perfect alternative for little companies working in the neighborhood showcase and not arranging to draw in huge speculators.

Sucursal (Branch)

A department of an outside company with the right to conduct commerce in Paraguay. It works on behalf of the parent company and performs the same capacities as the fundamental company. The department can enter into contracts, oversee resources, keep bookkeeping records and get wages inside the country.

The arrangement diminishes the costs of enrolling a company in Paraguay. There is no requirement for authorized capital, improvement of constituent arrangements, isolated bookkeeping and statute back. The department can work without complex methods and formal gatherings. Other advantages:

• Maintaining control: all key choices are made at head office.
• Tax optimization: the organizer can take advantage of the charge points of interest of the parent company.
• Unified structure: the organization gives streamlined bookkeeping, examining and conformance with universal standards.

Corporations open branches to diminish costs when entering the advertisement and disentangle the administration of the modern structure. But to dispatch unused ventures, you will have to enlist a company in Paraguay.

Office of Representation (Agent Office)

A division of a remote organization made for enlightening, investigating and agent purposes. Its fundamental errand is to collect information on the nearby advertisement, conduct promoting investigations, analyze buyer requests and the competitive environment. An agent office can set up contacts with potential clientele, accomplices or providers, but without the right to conclude contracts or get salary. For these errands, a full-fledged commerce spearheading in Paraguay is necessary.

The agent office is not enrolled as an autonomous lawful substance, but is completely subordinate to the parent company. Its exercises are restricted by law: any commercial operations are denied. Counting the deal of merchandise, arrangement of administrations or interest in tenders.

The frame is financed specifically from the head office. All costs are secured by the parent organization (lease, worker pay rates, showcasing exercises, etc.). Enlisting a department in Paraguay is helpful for organizations looking to increment brand acknowledgment, but are not prepared to make a full-fledged commerce structure in the nation.

Company registration in Paraguay: complete instructions

The strategy incorporates a few stages: choosing a one of a kind title, planning constituent agreements, submitting an order through SUACE and getting a charge number. Let's consider all the steps in more detail.

The preparation is directed by DINAPI (National Mental Property Specialist). The company title must be one of a kind and clearly discernable from existing brands to maintain a strategic distance from perplexity or clashes after enrolling a company in Paraguay. The title must incorporate the lawful shape of the company (for illustration, Sociedad Anónima). The utilization of hostile, oppressive or indecent dialects is prohibited.

The title must not deceive almost the company's exercises or make a wrong impression about its measures, licenses or associations with government offices. Common words may as it were to be utilized in combination with special components that give distinguishing proof of the company. Cases: "Worldwide Exchange" is also a unique title, but "Worldwide Exchange Coordinations SA" or "Paraguay Worldwide Exchange" make it unique.

A demand for title reservation is submitted by means of the entry www.dinapi.gov.py or in person at the DINAPI office. It demonstrates the full title of the endeavor, legitimate shape, candidate information and contact data. Moreover, a receipt for settlement of the charge is connected. If there are no blunders, a reservation certificate is issued, which is substantial for 30 days. Amid this period, the company must be enlisted in Paraguay, something else the reservation is cancelled.

If the title is rejected, the candidate may make changes and re-submit the demand. The reason for dismissal may be a coincidence with enrolled names or non-conformance with legitimate requirements. For case: the utilization of precluded terms or the need for assignment of the legitimate form.

Preparing documentation for opening a commerce in Paraguay

To enlist a company in Paraguay, it is vital to get ready the constituent indentures:

• Company Constitution: incorporates the official title of the company, lawful frame, destinations and exercises, enlisted address and capital structure.
• Minutes of the constituent assembly: records the choice to set up the company, favor the constitution and designate management.
• List of originators: contains data around each member, counting their offers in the capital.

To enroll a company in Paraguay, you will require an indenture affirming the possession of the legitimate address or a rent assention. As well as a certificate from the bank on the store of the authorized capital (in case it is a joint-stock company) and an order for the arrangement of chiefs (with their character cards and assess numbers attached).

If there are remote citizens among the authors, their arrangements must be interpreted into Spanish, certified by a certified interpreter and apostilled. The reservation of the company title is affirmed by a certificate from DINAPI. To enlist a company in Paraguay, you will require to pay government expenses and get a company assess number.

All agreements for enrolling a company in Paraguay are certified by a public accountant to affirm their realness and conformance with legitimate imperatives. The company's constitution must be drawn up in understanding with the arrangements of Ley N° 1034/83, reflecting the legitimate shape, targets of the movement and capital structure.

Ley N° 6480/2020 (Empresas por Acciones Simplificadas) directs the specifics of enrolling disentangled joint-stock companies. Counting the least capital and administration strategies. For companies claiming charge rewards, the extra conditions set up by Ley N° 60/90 (Régimen de Incentivos Fiscales a la Inversión de Capital) are mandatory.

Company enlistment in Paraguay through SUACE

The Bound together Framework of Undertakings (SUACE) is a centralized government stage that encourages the enrollment, adjustment and closure of companies. It works beneath the Service of Industry and Exchange, coordination intelligent with key bodies:

• The Subsecretaría de Estado de Tributación (SET) is the charge office mindful of allotting the assess distinguishing proof number (RUC).
• The Instituto de Previsión Social (IPS) is a social security framework that guarantees the enlistment of managers and employees.
• The Registro Público de Comercio (RPC) is the primary body for the official enlistment of a company in Paraguay and its incorporation in the legitimate register.

The preparation starts with enrollment on the SUACE entry. The client makes an individual account, fills in contact points of interest and data around the endeavor, chooses a shape (EAS, SA, etc.). SUACE consequently produces a list of obligatory methods and steps.

The first step after submitting a demand is to exchange the information to the Subsecretaría de Estado de Tributación (SET) to get an assess number. The framework checks the indicated lawful address, sorts of exercises, conformance of the authors and directors with the imperatives of charge enactment. If the data complies with the benchmarks, the stage consequently relegates a RUC. The preparation takes up to 10 working days. Note: an assess number is required to record announcements, pay charges, and record commercial exchanges. It is moreover required when spearheading a corporate bank account and conducting trade activities.

The other step is to enlist the Paraguayan company with the Instituto de Previsión Social (on the off chance that it is arranged to utilize representatives). SUACE sends the company's information to IPS for enlistment as a manager, and the company gets an enlistment number vital for calculating and paying social security commitments. At this organization, it is critical to demonstrate the anticipated number of workers and the fundamental conditions of their work. Enrollment with IPS is as a rule completed inside 5-7 working days. The company gets to the IPS stage for bookkeeping of social security commitments and reporting.

In the last arrangement, SUACE consequently transmits the commerce data to the Diario Oficial de la República del Paraguay daily paper for distribution. The framework checks the information for conformance with the imperatives some time recently sending it to the daily paper. The preparation is coordinated into the framework and is carried out without coordinated interaction between the candidate and the daily paper publication staff.

SUACE incorporates the distribution charge in the common receipt for company enrollment in Paraguay. The sum and settlement terms are shown in the applicant's individual account. After settlement, the handle takes 10-15 trade days. If there are delays, the framework sends a notification.

The distribution incorporates data on the company's enlistment date and the begin date of its operations. This is particularly vital for companies that apply for assess rewards beneath Ley N° 60/90. After the distribution of the article, it is vital to inform the assess office of conformance with the announced criteria and give a hypothesis arrange. If this is not done inside the indicated time allotment, the charge rewards may be cancelled.

All the over activities and stages can be followed through your individual account on the SUACE entry. The framework permits you to make alterations when mistakes and disparities are identified. For SUACE, it consequently gives enlightening on how to kill insufficiencies. Notices about issues are sent naturally, which makes a difference to maintain a strategic distance from delays when spearheading a trade in Paraguay.

Responsibilities after registering a company in Paraguay

The entrepreneur must update the data in the register, store indentures and conform with corporate procedures. Let's look at the responsibilities in more detail.

After registering a company in Paraguay, the entrepreneur is obliged to enter into the state register all changes that concern the structure of the business. Changes in owners, legal address, authorized capital or area of activity are recorded in the Registro Público de Comercio. If the information in the register is not updated, transactions may be challenged, the tax service has the right to suspend the RUC, and regulatory authorities may impose a fine.

Registering a business in Paraguay requires submitting changes through a notarized requisition. The procedure includes several stages:

1. Preparation of indentures – a copy of the charter, registration certificate, minutes of the meeting confirming the changes.
2. Notarization is mandatory for all indentures, including the founders’ decision.
3. Submission to the Registro Público de Comercio – indentures are submitted in person or through a representative.
4. Payment of registration fee – the amount depends on the type of changes.
5. Waiting for data update – on average, the procedure takes up to 15 working days.

When opening a company in Paraguay, updating data also concerns the management bodies. If the director, board of chiefs or business owners change, the changes are approved at a meeting of founders. The decision is recorded in the charter, certified by a notary and submitted to the register. Without recording, new managers cannot sign indentures and represent the company in government agencies. Changing the legal address requires providing a new lease agreement or certificate of ownership. To expand activities, it is necessary to update the charter and enter new codes for types of activity in the tax service.

After registering a company in Paraguay, the organization is required to maintain an archive of all legally significant materials. This includes the charter, articles of incorporation, minutes of meetings, corporate decisions, contracts, accounting books, tax returns and business correspondence. The storage period is at least five years, but depending on the category of papers, this period may be extended. The data must remain accessible for inspection by the tax service, the Ministry of Finance, the Central Bank and financial monitoring bodies.

Setting up a business in Paraguay entails obligations to maintain records. All legally significant records must be kept in paper or digital format. Physical copies are stored in secure facilities, and electronic versions are stored in encrypted databases with regular backups. Electronic files sent to government agencies must contain a qualified signature registered in the national certification system. Companies conducting international activities are additionally required to keep records of transactions with foreign partners, and their indentures may be requested by financial regulators.

Once a company is established in Paraguay, the organization is required to provide business documentation upon request from government authorities. Reports on shareholder meetings are registered with the Registro Público de Comercio, while financial statements and tax returns are sent to the Tax Service (SET). Financial information and supporting materials may be requested during audits. Failure to submit the required information on time or failure to submit the required data may result in the cancellation of the tax identification number (RUC) or temporary suspension of the company's activities.

After registering a business in Paraguay, the company is required to organize meetings of the management bodies within the established timeframes. Failure to hold meetings, violation of the voting procedure, or the absence of recorded decisions may result in fines and recognition of the management's actions as illegitimate. The board of chiefs meets with the frequency determined by the charter. In the absence of a fixed regulation, meetings are held at least once a year.

Opening a company in Paraguay entails obligations for managers. Directors sign financial statements, monitor the implementation of meeting decisions, and submit mandatory notifications to government agencies. Identified violations may result in mandatory compensation remittances to bondholders, changes to the board of chiefs, or the removal of the director by court order. conformance with disclosure standards is required. Managers are required to notify of personal interests in major transactions. The law requires recording all important changes, including amendments to the charter and distribution of profits.

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Accounting and tax responsibilities when registering a company in Paraguay

Once a business is established in Paraguay, it is necessary to maintain records that conform with the requisites of the Código de Comercio del Paraguay and Ley N° 6380/2019. The accounting system records assets, liabilities, income and expenses, as well as any changes in the financial position of the company. Standard reporting forms include Libro Diario, Libro Mayor and Registro de IVA.

Libro Diario contains a sequential record of all financial transactions of the enterprise. Each transaction is recorded with the date, description, and debit and credit amounts linked to the relevant accounts. All data is entered without omissions or retroactive adjustments, which ensures transparency of accounting. The book reflects the movement of funds and is the basis for reporting.

Libro Mayor summarizes the information from Libro Diario, distributing it by accounting categories. Each account has its own entry, which allows you to analyze the financial position of the company. This register serves as the basis for drawing up the balance sheet and calculations after the company is registered in Paraguay. The data must be accurate, since the final reporting is based on it.

Companies operating in Paraguay are required to keep these books of account in paper or digital format, according to Ley N° 6380/2019. The Tax Office may request the data at any time, so accuracy and timely updating are required.

Tax obligations after starting a business in Paraguay

The corporate income tax (CIT) is 10%. The annual return is filed by April 30. It records income, expenses and tax liabilities for the reporting period. Even if there is no activity, the company is required to file the indenture.

The Value Added Tax (VAT) is 10% for most goods and services, 5% for certain food and pharmaceutical products. Once a Paraguayan company is registered with the VAT, it is necessary to file monthly declarations by the 10th of the month. All tax calculations are confirmed by invoices issued in accordance with the requisites of Decreto N° 6539/2005.

Withholding Tax (WHT) applies to remittances to non-residents: royalties - 15%, interest - 10%, dividends - 15%. Companies are required to withhold tax from each remittance and transfer it to the budget by the 15th day of the following month. The WHT declaration is submitted monthly.

Mandatory invoices and accounting indentures when opening a company in Paraguay

Comprobante de Venta is any indenture that proves the sale of goods or services. It is mandatory for all companies and is used to calculate taxes. Without it, the sale is considered illegal. All Comprobantes de Venta must be registered with the SET tax office before use. The requisites are valid from the first day after the company is registered in Paraguay.

• Factura – a standard invoice confirming the sale and the amount of tax paid.
• Boleta de venta – a receipt for small sales that does not include the buyer's details.
• Cheque fiscal – a cash receipt issued through a fiscal registrar.

Once established in Paraguay, companies can issue invoices in paper or electronic form. Electronic indentures created through SIFEN have the same legal force as traditional forms, according to Ley N° 4017/2010. The use of digital format requires registration in SET and a qualified electronic signature. Correct accounting is only possible if the data storage system is configured in accordance with tax requisites.

After registering a company in Paraguay, it is necessary to undergo audits in accordance with Ley N° 6480. An audit is mandatory for large enterprises and financial institutions with a turnover exceeding 6,000 minimum wages. It confirms the correctness of bookkeeping and conformance of accounting data with the requisites of the tax system. The conclusion is submitted to the Subsecretaría de Estado de Tributación (SET) within the established deadlines; its absence may limit access to government contracts and affect taxation. Auditors with a license from the Consejo de Contadores Públicos del Paraguay are allowed to conduct the audit. Reports are prepared according to the standards of the Normas Internacionales de Información Financiera (NIIF).

Sanctions for violations

Delays in filing tax returns are subject to fines ranging from 50 to 500 minimum daily rates. The maximum penalty may be 30% of the unpaid amount of dividends or profits. If declarations are not filed systematically, the SET tax office has the right to freeze financial transactions and contracts by blocking RUC. We recommend that you take a responsible approach to accounting services in Paraguay.

Inconsistency of records with real indicators leads to additional sanctions. If a company keeps accounting books more than 90 days late, the fine ranges from 10% to 30% of the underpaid taxes. In case of repeated violations, temporary exclusion from the list of taxpayers with a ban on participation in public procurement is possible. Companies are required to keep Libro Diario, Libro Mayor and Registro de IVA without delays and errors.

Deliberate tax evasion is considered a crime. If the violation is confirmed, the tax service can initiate the liquidation of the enterprise. The owners of such organizations lose the right to do business for up to 5 years. In case of significant damage to the state budget, criminal liability is possible, including the arrest of the guilty. Do not skimp on accounting services in Paraguay, it pays for itself a hundredfold.

Legal support for business registration in Paraguay

Errors in documentation lead to requisitions being returned and cause delays. A competent lawyer eliminates problems with constituent indentures, registration in the trade register and the tax service (he deals with this personally). All data is checked in advance to prevent refusal and additional checks. Obtaining a registration number is quick, without bureaucratic red tape.

Banks refuse to open an account at the slightest discrepancy, but a good lawyer is impeccably precise. He submits a set of indentures for conformance, selects a bank with favorable conditions, and accompanies the requisition process. Competent execution ensures smooth settlements with foreign partners and an excellent start after registering a business in Paraguay.

The tax regime affects the amount of payments and access to rewards. Errors lead to overpayments, fines and additional obligations. A specialist calculates the burden, helps to choose the best conditions, and eliminates unnecessary expenses. Without qualified assistance, it is difficult to take into account all the nuances, especially if the business is related to speculations, exports or financial services.

The contractual basis must conform with the law. A lawyer prepares agreements with partners and employees, eliminating controversial wording and risks. Properly drafted contracts protect the company from losses, tax claims and litigation.

Starting a business in Paraguay on your own comes with many risks. Including refusals, corrections, difficulties in working with banks and the tax service. Lawyers eliminate formal obstacles, speed up the process and reduce costs.

Grounds and formats for liquidation of a company in Paraguay

Voluntary liquidation begins by decision of the owners. Reasons are unprofitability, end of term, achievement of goals. The founders draw up a protocol, appoint a liquidator. All assets are taken into account, liabilities are paid off, the remaining property is distributed. After settlements, reports are submitted, the enterprise is excluded from the register. The owners fully manage the process, have the opportunity to settle issues with the tax authorities and creditors in advance. This is a natural end to the registration of a company in Paraguay.

Forced liquidation is initiated by the court or government agencies. The grounds are bankruptcy, debts, tax violations, illegal activity. If the company is insolvent, the court appoints a liquidator, the property is sold, and the proceeds are used to pay off the debts. If violations are discovered, the company is closed administratively. In this format, the owners do not control the process. Sanctions are possible, and in the case of violations - personal liability.

Procedure for liquidation of a company in Paraguay

The liquidator receives the right to manage accounts, sell property, sign indentures. Without his participation, transactions are invalid. The specialist is voluntarily appointed by the founders, and compulsorily by the court. If suspicious transactions are detected, cancellation is initiated. All settlements from the moment of opening a business in Paraguay are controlled by the tax service and creditors.

Debts are paid in the established order. First of all, taxes are covered, then employee salaries, then obligations to banks and suppliers. If funds are insufficient, assets are sold, the proceeds are distributed among creditors. Founders receive the remainder only after all debts are fully closed. In case of insolvency, lawsuits, seizure of property, financial sanctions are possible.

The company ceases to exist after all settlements are completed. Accounts are closed, licenses are cancelled, employment contracts are terminated. The liquidator submits reports, the tax office records the absence of debts. After exclusion from the register, the enterprise loses legal capacity. The founders are released from obligations unless evasion of debt payment or fictitious bankruptcy is proven.

Legalization of company liquidation in Paraguay

Liquidation begins with the registration of the decision. In a voluntary manner, the owners sign a notarized protocol; in a compulsory manner, the court issues a ruling. The indentures are transferred to the trade register, tax service and social funds. After the entry is made, the enterprise loses the right to new transactions, property registration, opening accounts and most of the opportunities received after business registration in Paraguay.

The reporting confirms the completion of settlements. The liquidator submits declarations to the tax office, social security funds and regulatory authorities. Payments to creditors, employees and transfers to the budget are recorded. The indentures must confirm the absence of debts. Errors or incomplete information lead to a refusal to exclude from the register, fines and additional checks.

The company is excluded after all obligations have been confirmed. The register records the termination of activity, registration records are cancelled and tax codes are closed. The founders are released from obligations unless fictitious bankruptcy or concealment of debts is detected. After exclusion, it is impossible to resume activity; a new company registration in Paraguay is required.

Conclusion

Once a company is registered in Paraguay, speculators gain access to preferential tax regimes, subsidies, and infrastructure opportunities. Government programs stimulate the development of industry, logistics, agriculture, technology, and exports. However, to receive preferences, it is necessary to conform with requisites: register a company in a certain sector, ensure job creation, and meet tax transparency criteria. Each project requires detailed planning and legal preparation to take advantage of all available opportunities.