Registering a company in Paraguay and opening an account with Paraguayan banks will be an excellent opportunity for the successful start of an international business, as well as a profitable investment.
Paraguay is an independent country located in central South America and partially covering mainland and island territories. It has no access to the sea, but adjoins the waters of the Parana River (the second longest on this continent).
Nearest neighbors of the country are: Brazil, Bolivia, as well as Argentina The country's economy: services, an industry (textile, cement, leather, soft drinks), a food industry, a hydro power, the agriculture (a logging, a livestock), a mining (gold), a tourism.
The capital is Asuncion. Largest cities are San Lorenzo, Luke, Ciudad del Este. National languages are Guarani/Spanish. The monetary unit is Paraguayan Guarani (PYG). Paraguay is a member of the UN and the Foreign Trade Organization.
Advantages of opening a startup in Paraguay:
The economy of the Republic of Paraguay is still at the initial stage of its development. To date, the country receives a key part of the profit from the agricultural sector. This means, that foreign entrepreneurs have every chance of rapidly capturing local markets and the stable development of any type of business: micro, small, medium and large.
If you are interested in registering a company in the Republic of Paraguay, then we offer you a list of the main business advantages of this state:
- a convenient geographical location;
- a large emerging market;
- broad prospects for starting a startup in Paraguay and expanding the existing business;
- the orientation of authorities to attract foreign capital + many profitable business programs;
- available labor resources;
- A flexible taxation;
- the presence of the 3rd largest free trade zone in the world (Ciudad del Este);
- a simplified visa regime;
- the availability of more than 4 DTA contracts.
For those, who wish to set up a Paraguayan company remotely and open a bank account in Paraguay, we recommend choosing any of the following business areas:
- real estate operations;
- a building;
- a medicine;
- IT technology;
- the electric power industry;
- a transport;
- a heavy industry;
- a restaurant business;
- a tourism;
- a gambling.
Key legal forms of companies in Paraguay:
If you are planning to open a company in Paraguay, the first step will be to choose the appropriate form of business, in particular:
- Limited Liability Company (L.L.C);
- an Open Joint Stock Company (P.L.C);
- a branch (B).
According to many foreign businessmen and investors, the most simplest and convenient form to manage is a limited liability company (L.L.C). If you want to establish a commercial firm in Paraguay, we recommend stopping the choice on it.
Those, who wish to register an enterprise in the Paraguay Republic remotely, must fulfill the following conditions of the local Regulator:
- The unique name of the company in Spanish or Guarani (the form of a business is indicated at the end: L.L.C. or P.L.C.);
- The allowable number of directors is from 1 or more (an individual/legal entities, a resident);
- The allowable number of shareholders is from 2 or more (individuals/legal entities). Residence status is any;
- A mandatory presence of a local office;
- A statutory audit;
- Submission of financial statements.
A tax treatment
If you decide to open a Paraguayan company, we recommend you first familiarize yourself with the taxation conditions of this country. To date, the Republic of Paraguay has the following corporate tax rates:
- An income tax for commercial and agricultural enterprises, as well as for companies with an annual income of less than 100 million PYG is 10%;
- A dividend tax is 5%;
- VAT is 10%/
Starting a business in Paraguay
Opening a business in Paraguay takes approximately 4 months. You also have the option of registering a firm in the Republic of Paraguay remotely. To do this, call YB Case experts, who will provide you with advice on how to open a corporate account in Paraguay banks as quickly as possible, support services in drawing up related documentation, and, if necessary, in obtaining a Paraguayan gambling license.