How do you set up a company in Paraguay?
A corporation (S.A.) or a limited liability company (S.R.L.) is formed by public deed before a notary, with the bylaws and the partners' details. It is then registered with the Public Registry (Registros Públicos), the tax ID (RUC) is obtained and the ultimate beneficial owners are registered. The partners can be foreigners.
S.A. or S.R.L.
A corporation (sociedad anónima, S.A.) divides its capital into shares and suits projects with several investors or plans to grow. A limited liability company (sociedad de responsabilidad limitada, S.R.L.) divides its capital into quotas and is usually chosen for small businesses with few partners. There is also the simplified joint-stock company (Empresa por Acciones Simplificada, EAS), which is created online through the Unified System for Opening and Closing Companies (Sistema Unificado de Apertura y Cierre de Empresas, SUACE).
The steps
- Define the name, the corporate purpose, the capital, and who the partners and the managers are.
- Sign the deed of incorporation before a notary.
- Register the company with the Public Registry (Dirección General de los Registros Públicos).
- Obtain the tax ID (RUC) from the national tax authority (Dirección Nacional de Ingresos Tributarios, DNIT).
- Register the ultimate beneficial owners with the Ministry of Economy and Finance (Ministerio de Economía y Finanzas).
With foreign partners
The partners can be foreigners and do not need to live in Paraguay. If they sign from abroad, they do so with an apostilled power of attorney. If a partner is a foreign company, its documents must also be apostilled and translated.
This answer is general information about Paraguayan law and is not a substitute for advice on your specific case.
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