PARAGUAY
Paraguay Company Formation for International Founders
Establish a Paraguayan company for international business, regional operations, investment and entrepreneurial activities. ReadyCorp coordinates company formation, tax registration, local representation, banking preparation and optional residency support.
- Empresa por Acciones Simplificadas (EAS)
- Company incorporation coordination
- RUC / tax registration support
- Local legal representation where required
- Corporate documentation
- Bank account opening assistance
- Accounting & tax coordination
- Optional residency support
A practical base for business in South America
Paraguay combines comparatively straightforward company formation, a competitive tax framework and access to the wider Mercosur business environment.
10% corporate income tax
Paraguay's Impuesto a la Renta Empresarial (IRE) generally applies at a 10% rate to taxable Paraguayan-source business income.
Territorial tax approach
The Paraguayan business tax system focuses on income considered to arise from Paraguayan sources, making source analysis particularly important for international structures.
Simplified company route
The EAS was designed as a streamlined commercial company structure and can be incorporated through Paraguay's electronic company-registration system.
Foreign shareholders
Foreign individuals and companies can participate as shareholders in a Paraguayan EAS, subject to the applicable representation and KYC requirements.
No statutory EAS minimum capital
The EAS framework does not impose a general minimum or maximum capital requirement simply because the shareholders are foreign.
Residency pathway
Paraguay also provides residence options for foreigners, allowing company formation and personal relocation planning to be coordinated where appropriate.
Who typically considers Paraguay
Paraguay can be particularly interesting for international entrepreneurs seeking a flexible South American company together with comparatively manageable operating costs.
International entrepreneurs
Founders seeking a practical corporate vehicle for consulting, technology, online services, trading and other international business activities.
Regional businesses
Companies looking for a South American operating base and potential commercial access to Paraguay and the broader Mercosur region.
Owner-managed businesses
The EAS can accommodate compact ownership structures, including companies established by a single shareholder.
Relocation-linked structures
Entrepreneurs considering both a company and a personal residence pathway can coordinate the two processes as part of a wider Paraguay strategy.
Company formation and residency support
The engagement can be structured around company formation alone or combined with residency and ongoing corporate administration where required.
- Initial company-structure consultation
- Empresa por Acciones Simplificadas (EAS) formation
- Company-name and activity structuring
- Preparation of incorporation documentation
- RUC / tax-registration coordination
- Local legal representative arrangements where required
- Corporate documentation and registers
- Accounting and tax setup coordination
- Bank account opening assistance
- Initial residency pathway review
- Document checklist and preparation guidance
- Apostille / legalisation coordination where required
- Temporary residence application support
- Paraguayan ID process guidance following approval
- Local address / supporting-document coordination
- Residency and company-structure planning
The Paraguay EAS
The Empresa por Acciones Simplificadas provides a modern and comparatively streamlined vehicle for commercial activity in Paraguay.
- Can be established by one or more shareholders
- Shareholders may be individuals or legal entities
- Foreign ownership is permitted
- No general statutory minimum capital requirement
- Capital is represented by shares
- Electronic incorporation process
- Flexible commercial-purpose structure
Foreign shareholders can participate in a Paraguay EAS. However, founders who do not yet hold qualifying Paraguayan identification or permanent residence may require a locally qualifying legal representative.
- Foreign shareholder participation permitted
- Local legal representative can be arranged where necessary
- Representation may be established by power of attorney
- Foreign powers may require apostille / legalisation
- Spanish translation may be required for foreign documents
Paraguay tax at a glance
Paraguay is often considered for international structuring because of its comparatively straightforward business-tax rates and territorial-source approach.
IRE - 10%
The general Business Income Tax rate is 10% on taxable net business income falling within the Paraguayan corporate income-tax framework.
IDU - resident shareholder
Distributed dividends, profits and returns are generally subject to an 8% IDU rate where the recipient is Paraguayan resident.
IDU - non-resident shareholder
A 15% IDU rate generally applies where the recipient of distributed dividends, profits or returns is non-resident.
Optional residency support for founders
For entrepreneurs considering a deeper connection to Paraguay, ReadyCorp can also coordinate the documentation and practical steps required for the applicable residency process.
Under Paraguay's general immigration framework, temporary residence may be granted for up to two years and can be extended for an equal period.
- Temporary residence application preparation
- Valid identification documents
- Birth certificate
- Applicable civil-status documentation
- Background / police documentation
- Apostille or legalisation of foreign documents
- Spanish translations where required
Temporary residents may obtain a Paraguayan identity card corresponding to their residence period. Under the general route, temporary residence is also the prior step toward an application for permanent residence.
What ReadyCorp coordinates
We combine company formation with the practical services required to establish and maintain the Paraguay structure.
Company structuring
Review of the ownership structure, proposed activity and appropriate Paraguayan corporate setup.
EAS incorporation
Preparation and coordination of the EAS incorporation process and supporting corporate documentation.
Local representation
Legal-representative arrangements can be coordinated where the foreign shareholder structure requires them.
RUC & tax setup
Coordination of the company's tax registration and initial accounting setup.
Banking support
Preparation of the corporate and KYC documentation required for bank or financial-institution onboarding.
Residency support
Optional coordination of the immigration-document workflow for founders establishing a personal presence in Paraguay.
From initial structure to operational setup
The workflow is adapted according to whether the client requires company formation only or a combined corporate and residency engagement.
- 1
Initial consultation
We review the intended activity, shareholders, management structure, banking requirements and whether residency support is required.
- 2
Structure & documentation
Confirm the EAS structure, proposed company name, legal representation and required shareholder documentation.
- 3
KYC & legalisation
Prepare identification, ownership documents, powers of attorney and apostilles or translations where required.
- 4
Company formation & RUC
Coordinate EAS registration, company documentation and tax-registration steps.
- 5
Banking & residency
Continue with account-opening preparation, accounting setup and the optional residency workstream according to the agreed scope.
Information we typically need
Requirements vary according to whether the shareholders are individuals or companies and whether residency is included in the engagement.
- Passport / identity document
- Recent proof of address
- Proposed company name
- Description of intended business activity
- Shareholder and beneficial-owner information
- Management / legal-representative information
- Expected countries of operation
- Banking requirements
- Valid passport or identity document
- Birth certificate
- Applicable civil-status certificate
- Required criminal / police certificates
- Evidence of legal entry into Paraguay
- Apostilles / legalisation where applicable
- Spanish translation where required
Build the structure with banking in mind
ReadyCorp can coordinate the company and KYC file required for bank or financial-institution onboarding once the Paraguayan entity is established.
Corporate file
Preparation and organisation of the company documents required during financial-institution onboarding.
KYC preparation
Coordination of shareholder, UBO, management and source-of-funds documentation.
Application support
Assistance with onboarding questions and supplementary documentation during the account-opening process.
Paraguay company & residency questions
Common questions from international founders considering a Paraguayan company or combined company-and-residency structure.
What is an EAS?
An Empresa por Acciones Simplificadas is a simplified Paraguayan company limited by shares. It was introduced as an entrepreneur-focused commercial structure and can be formed by one or more individuals or legal entities.
Can foreigners own a Paraguay EAS?
Yes. Foreign individuals or legal entities can participate as shareholders. Where foreign shareholders do not have the required Paraguayan identification or permanent residence, a qualifying legal representative may need to be appointed in Paraguay.
Is there a minimum capital requirement?
The EAS regime does not establish a general minimum or maximum capital requirement simply for incorporating the company, including where the shareholders are foreign.
How quickly can an EAS be incorporated?
Paraguay's EAS system provides an expedited electronic registration process. Applications using the standard pro-forma statute may be processed within approximately 72 business hours where there are no observations. Non-standard constitutional documents may require approximately eight business days. International-founder projects can take longer because of powers of attorney, apostilles, KYC and representation arrangements.
What is Paraguay's corporate income tax rate?
The general IRE business income-tax rate is 10%. Paraguay focuses its IRE framework on Paraguayan-source income, so the actual treatment of an international business depends on where and how the income arises.
How are dividends taxed?
Paraguay's Dividend and Profit Tax (IDU) generally applies at 8% where the recipient is resident in Paraguay and 15% where the recipient is non-resident.
Can company formation be combined with residency?
Yes. ReadyCorp can coordinate the company and residency workstreams together. However, immigration residence, tax residence and corporate ownership are separate legal concepts and should not be treated as automatically producing the same result.
How long is temporary residence valid?
Under Paraguay's general temporary-residence route, residence may be granted for up to two years and can be extended for an equal period. Temporary residence is the prior step toward permanent residence under the general immigration route.
Can ReadyCorp assist with banking?
Yes. ReadyCorp can prepare and coordinate the corporate and KYC documentation required for account onboarding. Final account approval remains entirely subject to the financial institution.
Can ReadyCorp handle ongoing company maintenance?
Yes. Ongoing accounting, tax filing, corporate administration, legal representation and other maintenance services can be coordinated according to the company's activity and requirements.
Build your Paraguay structure with ReadyCorp
Tell us about your proposed business, ownership structure and whether you also require residency support. ReadyCorp will coordinate the appropriate company, tax, banking and immigration workstreams.
