Paraguay – an attractive location for business
Low taxes, simple structures and minimal bureaucracy make Paraguay one of the most business-friendly countries in South America. For expatriates who want not only a residence but also an economic base in Paraguay, there are attractive opportunities.
Company types in Paraguay
- SRL (Sociedad de Responsabilidad Limitada): The most common form for small and medium-sized companies. Minimum capital: 1 million Guaraní (approx. 130 Euro). At least two shareholders required.
- SA (Sociedad Anónima): Joint-stock company for larger structures and external investors. More complex to set up but more flexible in capital structure.
- Sole proprietorship (Empresa Unipersonal): For the self-employed. Simplest form, unlimited liability of the owner.
Tax aspects
Paraguayan companies pay 10% corporation tax (IRACIS) on profits earned domestically. Value added tax (IVA) is 10% (5% on basic foodstuffs). A dividend tax of 8% applies to distributed profits. By international standards this is one of the lowest tax burdens worldwide.
Details on tax structures and territorial taxation can be found in the article Asset protection and tax advantages.
Formation process
- Notarial certification of the articles of association
- Registration in the commercial register (Registro Público de Comercio)
- RUC registration with the SET
- Opening a business account
The entire process takes 2–4 weeks with professional support. ParaguayJoker coordinates all steps and works with experienced local notaries and lawyers. Arrange a consultation and find out which structure best suits your situation. Our services at a glance.
