Incorporate your company in Paraguay in 15 to 25 business days. 10% corporate income tax, no wealth tax. We manage the complete process for foreign investors and companies from Asunción.
Paraguay offers one of the most competitive tax regimes in South America. The Impuesto a la Renta Empresarial (IRE) is 10% on net income, compared to 35% in Argentina or 34% in Brazil. There is no wealth tax, property tax, or inheritance tax. VAT is 10% and the tax structure is simple and predictable.
Paraguay is a member of MERCOSUR, which grants preferential access to a bloc of more than 300 million consumers. Its central geographic location — with river access to the Atlantic via the Paraná River and land access to Brazil, Argentina and Bolivia — makes it a top-tier logistics hub.
10%
Corporate income tax / IRE
10%
VAT (one of the lowest in the region)
0%
Wealth / property / inheritance tax
Types of companies in Paraguay
Paraguay provides four main legal structures for business activity. The choice depends on the number of partners, the volume of operations and the governance structure required.
SRL — Sociedad de Responsabilidad Limitada
The most commonly used structure by foreign companies operating in Paraguay. Admits between 2 and 50 partners. Each partner's liability is limited to their contributed capital. Participation quotas are not freely transferable without the consent of the other partners.
SA — Sociedad Anónima
Requires a minimum of 3 shareholders (who may be foreign individuals or legal entities). Shares are freely transferable. Suited for projects requiring greater capitalization, multiple investors, or future access to capital markets.
EAS — Empresa por Acciones Simplificadas
A sole-proprietor entity created by Law 6480/20. A single owner with liability limited to registered capital. Simplified incorporation process with shorter timelines than the SRL. Ideal for individual ventures and independent professionals.
Branch of a foreign company
The foreign company operates directly in Paraguay without creating a new legal entity. The parent company is jointly liable for the branch's obligations. Requires registration with the RPC (Commercial Registry) and appointment of a legal representative domiciled in Paraguay.
Comparison of corporate structures
Feature
SRL
SA
EAS
Number of partners
2 to 50
Minimum 3
1 (sole proprietor)
Liability
Limited to capital
Limited to capital
Limited to capital
Transfer of shares/quotas
Requires consent
Freely transferable
N/A
Incorporation time
15–25 business days
20–35 business days
5–10 business days
Best for
Regular operations
Large capitalization
Sole proprietors
Incorporation process step by step
Define the corporate structure and partners Evaluate SRL, SA or EAS based on the number of partners, projected volume and governance structure. Identify all partners and their ownership percentages.
Company name reservation Request the company name reservation at the RPC (Registro Público de Comercio — Commercial Registry) or through the digital SUACE system (Sistema Unificado de Apertura de Empresas — Unified Business Registration System).
Incorporation deed before a notary Drafting of the corporate bylaws and signing of the public deed before a registered notary public in Paraguay. If the partners are abroad, a duly apostilled power of attorney is required.
Registration with the RPC (Commercial Registry) Filing of the deed with the RPC. Once approved, the company obtains its commercial registration number and full legal entity status.
Obtaining the RUC (Tax ID) from the DNIT The RUC (Registro Único del Contribuyente — Tax ID) is issued by the DNIT (Dirección Nacional de Ingresos Tributarios — Tax Authority). It is essential for issuing legal invoices and operating fiscally in Paraguay.
Municipal business permit Application for a commercial permit from the Municipality of Asunción (or the municipality where the company operates). An active registered business address is required.
Business bank account opening Opening an account at a bank authorized by the BCP (Banco Central del Paraguay — Central Bank of Paraguay). Required to operate, collect and make payments within the Paraguayan financial system.
Registration as importer/exporter with the DNIT If the company will conduct foreign trade operations, registration as an operator with the DNIT (Dirección Nacional de Aduanas — National Customs Authority). Desembarco manages this process together with the incorporation.
Desembarco Paraguay manages the company incorporation and the DNIT registration as importer in the same onboarding process, with no need to hire multiple service providers. The investor does not need to travel to Paraguay at any point during the process.
Paraguay's tax regime
Paraguay has one of the simplest and most competitive tax systems in Latin America. The main taxes affecting a company are:
Tax
Tax base
Rate
IRE
Net corporate income (Impuesto a la Renta Empresarial, Ley 6380/19)
10%
VAT
Sales of goods and services
10%
IRP (personal income tax)
Net personal income from Paraguayan sources
10%
Dividend withholding (non-residents)
Dividends distributed to partners abroad
15%
Wealth / property tax
—
Does not exist
Inheritance tax
—
Does not exist
Paraguay applies the source principle: only income generated within Paraguayan territory is taxed in Paraguay. Foreign-source income is not subject to IRE.
Do you also need customs brokerage?
If your company will import or export goods, the DNIT (Dirección Nacional de Aduanas — National Customs Authority) requires a licensed customs broker for every foreign trade operation. Broker fees are regulated by Law 220/93. Desembarco manages both services in parallel: company incorporation and registration as importer with the DNIT.
If you are also interested in obtaining investor residency, the Paraguay Investor Pass provides permanent residency with a minimum investment of USD 70,000.
Frequently asked questions about opening a company in Paraguay
Can a foreigner be a partner or owner of a company in Paraguay?
Yes, without restrictions. A foreign investor or company can be the majority partner or sole owner of a company in Paraguay. No local partner or Paraguayan participation is required in any of the available corporate structures.
Do I need to be physically present in Paraguay to incorporate the company?
No. With a duly apostilled power of attorney, Desembarco Paraguay can manage the entire process remotely. The investor does not need to travel until the company is operational and the bank account is open.
How long does it take to incorporate a company in Paraguay?
An SRL takes between 15 and 25 business days from the signing of the bylaws to obtaining the RUC and all permits. An EAS can be operational in 5 to 10 business days. The timeline varies depending on the workload of the Commercial Registry.
What is the corporate income tax rate in Paraguay?
IRE (Impuesto a la Renta Empresarial) is 10% on net income. Paraguay has no wealth tax, no property tax, and no inheritance tax. VAT is 10%. Compared to Argentina (35%), Brazil (34%) or Uruguay (25%), the tax burden is significantly lower.
Can I remit dividends abroad?
Yes. Dividends distributed to non-resident partners or shareholders are subject to an 15% withholding tax at source. There are no restrictions on profit repatriation and no foreign exchange controls in Paraguay.
What is the difference between SRL and SA in Paraguay?
The SRL admits between 2 and 50 partners, with participation quotas that are not freely transferable without the consent of the other partners. The SA requires a minimum of 3 shareholders with freely transferable shares. The EAS is the simplified sole-proprietor option. For most foreign investors, the SRL is the most practical and efficient structure.
Do I need a physical premises to incorporate the company in Paraguay?
For the RPC registration, no owned premises are required. However, for the municipal permit and the RUC, an active registered business address in Paraguay is required. Desembarco can provide a legal address during the setup process.
Do you want to open your company in Paraguay? Tell us about your case and we will guide you free of charge on the most suitable corporate structure and the full process.
