Company Formation in Paraguay
Foreign entrepreneurs can establish a company in Paraguay, but the right structure depends on the number of shareholders, the proposed activity, the management arrangement and the long-term objectives of the business.
This guide compares the EAS, SRL and SA, explains the role of a Paraguayan legal representative and outlines the main steps from choosing a company type to obtaining the company RUC.
Starting a company in Paraguay
Establishing a Paraguayan company creates a separate legal structure through which an entrepreneur can conduct commercial activities, sign contracts, employ staff, issue invoices and hold business assets.
The formation process is not limited to registering a name. The founders must choose a legal structure, define the business purpose, identify the shareholders, determine the capital and appoint the people responsible for managing and representing the company.
After incorporation, the company will normally need tax registration and may also require municipal, labour, social security or sector-specific registrations depending on its activity.
A company may be legally incorporated while still needing additional permits, licences or registrations before beginning a regulated activity.
Main company types in Paraguay
Paraguay offers several legal structures. For many privately owned businesses and foreign entrepreneurs, the most relevant options are the Empresa por Acciones Simplificadas, the Sociedad de Responsabilidad Limitada and the Sociedad Anónima.
Empresa por Acciones Simplificadas
The EAS is a simplified corporate form designed for entrepreneurs. It can be formed by one or more individuals or legal entities and its formation process is handled online through the official EAS system.
Sociedad de Responsabilidad Limitada
The SRL is a limited liability company whose capital is divided into ownership quotas. It requires at least two partners and allows a maximum of 25.
Sociedad Anónima
The SA is a traditional share company. It requires at least two shareholders and may be appropriate for larger structures, multiple investors or businesses with more complex governance needs.
EAS vs SRL vs SA in Paraguay
No company type is automatically best for every entrepreneur. The appropriate choice depends on ownership, governance, investment plans and the nature of the activity.
| Feature | EAS | SRL | SA |
|---|---|---|---|
| Minimum participants | One shareholder | Two partners | Two shareholders |
| Maximum participants | No general maximum indicated for ordinary EAS structures | 25 partners | No general maximum |
| Ownership | Shares | Ownership quotas | Shares |
| Formation channel | Online EAS platform through SUACE | Public deed and registration process | Public deed and registration process |
| Typical profile | Individual founders, startups and closely held businesses | Small or medium businesses with a limited group of partners | Larger enterprises, investors or more formal governance structures |
| Single foreign founder | Possible, subject to representation and document requirements | Not possible with only one partner | Not possible with only one shareholder |
This comparison is general. Corporate governance, regulated activities, foreign ownership arrangements and individual objectives should be reviewed before selecting a structure.
What is an EAS in Paraguay?
EAS stands for Empresa por Acciones Simplificadas. It is a legal entity created under Paraguayan Law No. 6480/2020 and designed with a simplified, entrepreneur-focused structure.
An EAS is commercial in nature and may be established by one or more individuals or legal entities. This makes it especially relevant to entrepreneurs who do not have or do not want a second shareholder.
Single-shareholder option
One person can establish an EAS. When it has only one shareholder, the company must use the applicable unipersonal designation.
Online formation
The opening and subsequent structural procedures for an EAS are processed through the official SUACE EAS system.
Separate legal personality
The EAS operates as a legal entity distinct from its shareholder or shareholders.
Flexible constitution
Depending on the case, the constitutive document may use the official pro forma or another permitted instrument.
It has corporate, tax, accounting and reporting obligations. The simplified formation process should not be confused with the absence of ongoing compliance.
Can a foreigner open a company in Paraguay?
Foreign individuals may participate as shareholders or partners in a Paraguayan company. A foreign legal entity may also participate, provided that the required corporate and identification documents are supplied in an acceptable form.
For an EAS, foreign shareholders may generally be identified with a valid passport or identity document. However, the person acting as the principal legal representative must be Paraguayan or possess a Paraguayan identity card.
A foreigner may be able to own shares without personally satisfying every requirement imposed on the company’s legal representative or administrative authorities.
A foreign founder who does not yet hold a Paraguayan cédula may therefore need to appoint a qualifying representative. When a power of attorney is issued abroad, formal legalisation or apostille and a Spanish translation may be required.
The role of the legal representative
The legal representative is authorised to act for the company before public institutions and third parties within the scope of the company documents and the powers granted.
For an EAS, access to the online incorporation process uses the electronic identity of the principal legal representative. An electronic identity is connected to a Paraguayan cédula.
- The representative may be one of the shareholders or an appointed third party.
- The representative must meet the applicable Paraguayan identification requirements.
- The appointment and powers should be documented correctly.
- The founders should clearly define which actions the representative may perform.
- Bank, tax and contractual powers may require separate practical verification.
The representative may have access to sensitive company, registration and tax procedures. The founders should understand the powers being granted and how the representative may later be replaced.
Documents commonly required
The exact documents depend on the company type, the founders, the proposed legal representative and whether any document originates outside Paraguay.
Individual shareholders
- Valid Paraguayan cédula, passport or identity document
- Personal and contact information
- Details of the proposed capital contribution
- Information about the beneficial owner
Foreign corporate shareholders
- Document proving the legal entity’s existence
- Corporate decision authorising the investment
- Identification of representatives and beneficial owners
- Apostille or legalisation when applicable
- Spanish translation when required
Legal representative
- Valid Paraguayan identity documentation
- Formal acceptance or appointment
- Electronic identity for an online EAS application
- Power of attorney when acting for foreign founders
Company information
- Proposed legal name
- Registered address
- Business purpose and activities
- Capital and ownership distribution
- Management and representation rules
A document issued abroad may need an apostille or another form of legalisation. Documents in a foreign language may also require translation into Spanish by an authorised translator.
How to open a company in Paraguay
The precise procedure varies between an EAS, SRL and SA. Nevertheless, the project usually follows the stages below.
Define the business project
Identify the planned activities, founders, ownership percentages, investment requirements and management structure.
Select the company structure
Compare the EAS, SRL and SA according to the number of participants, governance needs and future investment plans.
Choose and verify the company name
Select a legal denomination and separately consider whether the commercial name or brand should be protected through trademark registration.
Prepare the constitutive documents
Define the company purpose, capital, shareholders, authorities, representation powers and internal rules.
Submit the incorporation application
An EAS is filed through the official online system. An SRL or SA generally requires a public deed and the applicable registration procedure.
Complete company and beneficial-owner registration
The company and its relevant legal and beneficial-owner information must be recorded with the competent institutions.
Obtain the company RUC
The legal entity must be registered with the DNIT and assigned the tax obligations associated with its activities.
Complete operational registrations
Depending on the business, this may include municipal, labour, social security, invoicing and sector-specific procedures.
Company name and trademark protection
Incorporating a legal entity under a particular company name does not necessarily grant exclusive trademark rights over the brand used in the market.
The corporate name identifies the legal entity. A trademark, by contrast, protects a sign used to distinguish products or services within the relevant classes.
Before investing in signs, websites, packaging or advertising, consider searching and registering the intended brand through Paraguay’s intellectual property authority.
Read our complete guide to trademark registration in Paraguay .
Company RUC registration
A Paraguayan legal entity generally needs its own Registro Único de Contribuyentes, or RUC, before carrying out taxable business activities.
The RUC application identifies the company, its representatives, shareholders, registered activities and relevant tax obligations. For an EAS, the tax registration process is channelled through SUACE as part of the integrated procedure.
The company’s registered taxes will determine which declarations must be filed and how frequently. Obtaining the RUC therefore creates ongoing responsibilities and should not be treated as the final administrative step.
The legal entity has its own taxpayer identity, records and obligations. Founders may also have separate personal tax duties depending on their role and income.
Learn more in our guide to RUC compliance in Paraguay .
Tax and accounting obligations after incorporation
A company must remain compliant after it has been formed. Depending on its activities and tax registration, it may have monthly, annual and transaction-specific obligations.
- Issue valid invoices or authorised tax documents.
- Maintain accounting and supporting records.
- Register purchases, sales, expenses and income.
- Submit applicable tax declarations by the deadline.
- Pay any resulting taxes and contributions.
- Update legal, tax and beneficial-owner information.
- Record changes in shareholders, authorities or capital.
- Maintain corporate books and resolutions when applicable.
Lack of commercial activity does not automatically cancel registered taxes or reporting requirements. An inactive company should be reviewed and formally suspended, modified or closed when appropriate.
Opening a company bank account
After incorporation and tax registration, the founders may apply for a corporate bank account. Account approval is a separate compliance process controlled by the selected financial institution.
The bank may request documents identifying the company, shareholders, beneficial owners, representatives, business activity and expected source of funds.
Company documents
Constitutive documents, tax registration, company certificates and proof of registered address may be requested.
Identity documents
Banks may verify directors, representatives, shareholders and beneficial owners.
Business explanation
The bank may ask about customers, suppliers, expected transactions and the economic purpose of the account.
Source of funds
Supporting evidence may be required for capital, investments or international transfers.
Each bank applies its own onboarding, risk and compliance criteria. Requirements may be more extensive for non-resident shareholders or businesses receiving international payments.
Hiring employees in Paraguay
A company that hires personnel may need to complete employer, labour and social security registrations in addition to its corporate and tax registrations.
Employment relationships should be documented correctly, and the employer must comply with applicable salary, contribution, leave, working-time and termination rules.
The precise obligations depend on the employment arrangement and should be reviewed before workers begin providing services.
Municipal licences and regulated activities
Some companies need a municipal commercial licence, operating permit, professional registration or sector-specific approval before beginning activity.
Requirements may depend on the municipality, the physical premises and the type of business. Activities involving finance, insurance, food, health, transport, telecommunications, mining, environmental impact or other regulated sectors may require additional authorisation.
Incorporating the company first does not guarantee that a chosen location or planned activity will receive every necessary operating permit.
How long does company formation take?
The official EAS process is designed to be faster and more digital than traditional company formation. The MIC describes a standard administrative target of 72 business hours for an EAS and up to 15 business days for an SRL or SA through the applicable system.
These periods should not be interpreted as a guaranteed complete-business launch date. Preparation of foreign documents, corrections, powers of attorney, tax verification, bank onboarding and licences can extend the overall project.
| Stage | What may affect the duration? |
|---|---|
| Document preparation | Apostilles, translations, corporate approvals and identification documents |
| Company incorporation | Company type, completeness of the application and corrections requested |
| RUC registration | Tax information, verification and representative availability |
| Bank account | Bank compliance, source-of-funds review and business profile |
| Operating licences | Municipality, premises and regulated activity |
How much does it cost to open a company in Paraguay?
The total cost depends on the structure, number and nationality of the participants, type of constitutive document, foreign documentation and professional support required.
Although the official EAS process using the standard pro forma is designed as a free online incorporation route, founders may still incur costs for document preparation, legal advice, powers of attorney, translations, apostilles, registered addresses, accounting and other operational requirements.
Formation documents
Legal drafting, public deeds, notarisation or signature certification may be required depending on the structure.
Foreign documents
Apostille, legalisation, certified copies and Spanish translation can add to the cost.
Professional support
Legal, accounting and administrative assistance may be necessary before and after incorporation.
Ongoing operation
Accounting, tax filings, licences, payroll and corporate maintenance create recurring costs.
Common company formation mistakes
Choosing a structure only because it is fast
Formation speed should not replace a review of ownership, governance and future investment needs.
Using an unsuitable business purpose
An incomplete or inaccurate corporate purpose can create problems when registering activities or applying for permits.
Ignoring representative powers
Founders should understand who can sign, access systems, open accounts and bind the company.
Confusing the company name with a trademark
Incorporation does not automatically protect the brand against use or registration by others.
Opening a RUC without a compliance plan
Tax obligations can begin even before the business has meaningful revenue.
Assuming the bank account is automatic
Banks independently review ownership, activity and source of funds.
Company formation checklist
- Define the proposed business activities.
- Identify every shareholder or partner.
- Select between an EAS, SRL, SA or another structure.
- Determine the ownership percentages and capital.
- Choose the legal representative and management authorities.
- Verify identification, residency and representation requirements.
- Prepare apostilles and Spanish translations where necessary.
- Choose the legal company name.
- Consider a separate trademark search and application.
- Define the registered address.
- Prepare and submit the constitutive documents.
- Complete legal-entity and beneficial-owner registration.
- Obtain the company RUC.
- Set up accounting and tax compliance.
- Review banking, municipal and sector-specific requirements.
Frequently asked questions
Can a foreigner own 100% of a company in Paraguay?
An EAS may be established by a single foreign shareholder, subject to the applicable documentation and legal-representation requirements. An SRL or SA requires at least two participants.
Do I need Paraguayan residency to open a company?
A foreigner may participate as a shareholder without necessarily holding Paraguayan residency. However, the person acting as the principal legal representative of an EAS must be Paraguayan or possess a Paraguayan cédula. Other administrative roles may have additional requirements.
Can one person create a company in Paraguay?
Yes. An EAS can be formed by one individual or legal entity. An SRL requires at least two partners, while an SA requires at least two shareholders.
What is the easiest company type to open in Paraguay?
The EAS has a simplified online formation process and can have a single shareholder. Nevertheless, the easiest structure to form is not necessarily the most appropriate for every business.
What is the difference between an EAS and an SRL?
An EAS may have one or more shareholders and is formed online through the official EAS platform. An SRL requires between two and 25 partners, its capital is divided into quotas and its constitution generally requires a public deed.
Does an EAS need a Paraguayan legal representative?
The principal legal representative must be Paraguayan or hold a Paraguayan cédula. A foreign founder without the required Paraguayan identification may appoint a qualifying third party.
Can I use my passport to become an EAS shareholder?
Foreign shareholders may generally be identified using a valid passport or identity document. This does not eliminate the separate requirements imposed on the principal legal representative.
Does the company automatically receive a RUC?
The legal entity must complete the applicable RUC registration process. For an EAS, the RUC application is channelled through SUACE as part of the integrated system.
Does company registration protect the business name?
Corporate registration and trademark protection are separate. A business that wants exclusive rights over its commercial brand should consider a trademark search and application with DINAPI.
Can a Paraguayan company open a bank account?
A registered company can apply for a corporate bank account, but approval is not automatic. The bank will review the company, representatives, beneficial owners, business model and source of funds.
Does a company need an accountant in Paraguay?
A company must maintain appropriate accounting and tax records. Professional accounting support is generally advisable to manage declarations, invoices, financial records and ongoing compliance.
Can I create a company before moving to Paraguay?
Foreign founders may begin preparing documents and may act through a properly appointed representative. Practical requirements will depend on the company type, the powers granted and the procedures that require local identification or physical presence.
Official company formation resources
Corporate requirements and administrative systems can change. Current procedures should always be verified with the relevant Paraguayan institutions.
Related guides for entrepreneurs
Continue planning your business and relocation strategy with these related EasyParaguay guides.
Planning to establish yourself in Paraguay?
A Paraguayan residence, cédula and personal RUC can make it easier for foreign entrepreneurs to manage local procedures and act as their own qualifying representative where the applicable requirements are met.
This guide provides general information and does not constitute legal, corporate, tax, accounting or investment advice. Company requirements depend on the chosen structure, activities, shareholders and individual circumstances.
