Company Formation in Paraguay
Set up your company in Paraguay and take advantage of one of Latin America's most favorable jurisdictions, with territorial taxation of just 10%.
Why Start a Company in Paraguay?
Paraguay has become one of the favorite destinations for business internationalization. The country offers a unique combination of low taxation, economic stability and Mercosur access.
Paraguay's great advantage is its territorial tax system: only income generated within the country is taxed. This means income from investments, services rendered or sales abroad can be completely exempt from Paraguayan taxes.
"Paraguay offers excellent value for those looking to diversify their business internationally: low taxation, stability and access to South America's largest economic bloc."
Advantages of Paraguay
Why Paraguay is attractive for businesses
10% Taxation
A flat 10% rate on profits — one of the lowest corporate tax burdens in Latin America and the world.
Territorial System
Only income generated within Paraguay is taxed. Foreign-source income is completely tax-exempt.
Mercosur Access
A full Mercosur member, easing trade with Brazil, Argentina and Uruguay without tariff barriers.
Dollar Accounts
The banking system allows accounts in dollars, guaraní and other currencies, easing international operations.
Fast Incorporation
A streamlined process, with formation completed in 7 to 15 business days depending on company type.
Low Bureaucracy
Fewer regulatory requirements than Brazil. A more flexible, agile business environment.
Brazil vs. Paraguay Comparison
See the difference in tax burden
| Tax | 🇧🇷 Brazil | 🇵🇾 Paraguay |
|---|---|---|
| Income Tax (IR) | 15% + 10% surtax | 10% |
| Dividends | 0% (exempt) | 5% |
| Social Contribution | 9% (CSLL) | None |
| PIS/COFINS | 9.25% to 3.65% | None |
| VAT/ICMS | 7% to 25% (ICMS) | 10% (VAT) |
| Foreign Income | Taxed | Exempt |
Who Is It For?
A Paraguayan company suits a wide range of business profiles
Import/Export
Paraguay is strategically positioned for foreign trade within Mercosur, with dry ports and free zones.
Asset Holding
Structure your family or business wealth with favorable taxation and asset protection.
International Trading
Ideal for companies intermediating international business between different countries.
Service Provision
Consultancies, tech and professional services can benefit from territorial taxation.
Company Types
Choose the ideal structure for your business
S.A.S. (Simplified Joint-Stock Company)
A modern, flexible structure ideal for small and medium businesses. Allows a single owner or multiple partners with liability limited to invested capital.
Ideal for: Retailers, service providers, import/export, consultancies
No minimum capital required
S.A. (Corporation)
A structure for larger companies or those seeking investors. Allows an unlimited number of shareholders. Shares can be freely transferred, easing partner entry and exit.
Ideal for: Large companies, holdings, businesses seeking investment, real estate projects
Minimum capital of approximately US$10,000
Individual Limited Liability Company (E.I.R.L.)
For individual entrepreneurs who want to formalize their activities with asset protection. The owner is liable only up to the invested capital.
Ideal for: Self-employed professionals, freelancers, small individual traders
No minimum capital required
Branch of a Foreign Company
For foreign companies that want to operate directly in Paraguay while keeping the parent company's legal identity. The parent is fully liable for the branch's obligations.
Ideal for: International companies expanding into Paraguay
Depends on the activity
Formation Process
From planning to operation, step by step
Consultation & Planning
We assess your business and define the most suitable company type for your goals.
Documentation
We prepare all necessary documents, including translations and legalizations.
Public Deed
We draft the bylaws and formalize the public deed at a Paraguayan notary office.
DGRP Registration
We register the company with the Dirección General del Registro Público (companies registry).
RUC (Paraguayan Tax ID)
We obtain the Registro Único del Contribuyente from the Ministry of Finance.
Municipal License
We register the company with the city hall where it will operate (usually Asunción).
Bank Account
We help open a corporate bank account with Paraguayan banks.
Points to Consider
Paraguayan ID (Cédula)
For certain banking operations and to act as company administrator, it's highly recommended to have a Paraguayan ID. We can help with this process.
Local Substance
For international compliance purposes, it's important the company has real substance: an address, activities and ideally local employees.
Transfer Pricing
Transactions between the Paraguayan company and related Brazilian companies must follow transfer pricing rules to avoid tax scrutiny.
Frequently Asked Questions
Get your questions about companies in Paraguay answered
Can foreigners start a company in Paraguay?
Yes! Foreigners can be shareholders of Paraguayan companies. You need a Paraguayan ID (cédula) or a valid passport. The ID eases the process and also enables tax residency.
Do I need to live in Paraguay to have a company?
It isn't mandatory to live in Paraguay to have a company. However, if you want to establish tax residency and benefit from territorial taxation on your personal income, you'll need the ID and proof of local address.
How does taxation work in Paraguay?
Paraguay uses a territorial tax system: only income generated within the country is taxed. The rate is 10% on profits. Dividends paid to shareholders carry an additional 5% tax. Foreign-source income is completely exempt.
How long does it take to start the company?
The full process takes 7 to 15 business days for an S.A.S. and can take up to 30 days for an S.A., depending on complexity and how quickly required documents are obtained.
What does it cost to maintain a company in Paraguay?
Costs include: monthly accountant (mandatory), annual municipal license renewal fee, and taxes on revenue. Compared to Brazil, maintenance cost is significantly lower.
Can I open a corporate bank account?
Yes! With the RUC (Paraguayan tax ID), you can open accounts at Paraguayan banks. Accounts are available in guaraní, dollars and other currencies. Major banks include Itaú, BBVA, Banco Continental and Banco Regional.
Can a Paraguayan company do business with Brazil?
Yes! Paraguayan companies can do business normally with Brazilian companies. Paraguay is part of Mercosur, which eases trade. Transfer pricing rules and export/import documentation must be observed.
Do I need a Paraguayan partner?
It isn't mandatory to have a Paraguayan partner. Foreigners can own 100% of a Paraguayan company's capital. The S.A.S. even allows a single owner.
Does the company grant a visa or residency?
Having a company in Paraguay eases the residency process, especially if you show investment and job creation. The Paraguayan ID is obtained through the permanent residency process.
How does accounting work in Paraguay?
A licensed accountant is mandatory in Paraguay. Companies must keep accounting books and file monthly and annual returns. The fiscal year runs from January to December. We offer accounting services in partnership with local firms.
Ready to Start Your Company in Paraguay?
Our team is ready to help you set up your company quickly and safely, with full support in Portuguese.