How to Set Up a Company in Paraguay (2026): 11 Steps

If you’re planning to set up a company in Paraguay, understanding the incorporation process, legal requirements, and available company structures is the first step toward establishing a successful business in the country. If you’d rather have us handle it, see how to register a company in Paraguay with Easyco.

Paraguay continues to attract foreign investors thanks to its competitive tax environment, strategic location within MERCOSUR, relatively low operating costs, and business-friendly regulatory framework. Whether you’re launching a new venture, opening a subsidiary, or expanding into Latin America, choosing the appropriate legal entity and following the correct registration process are essential.

This guide explains how to set up a company in Paraguay, the incorporation process, required documents, estimated timelines, and key considerations for foreign investors in 2026.

Why Set Up a Company in Paraguay in 2026?

Many foreign investors choose to set up a company in Paraguay because of the country’s competitive tax environment, relatively low operating costs, strategic location within MERCOSUR, and business-friendly legal framework.

Whether establishing a subsidiary, opening a regional office, or expanding into Latin America, Paraguay continues to offer an attractive environment for international companies seeking long-term growth.

Before starting the company registration process, investors should evaluate the appropriate legal structure, understand the incorporation requirements, and ensure compliance with local corporate regulations.

How to form a company in Paraguay?

In comparison to other countries in Latin America, incorporating a company in Paraguay can be a lot easier and faster. Usually it takes between 2 – 4 weeks to complete all the process. A Paraguayan lawyer that is familiar with the procedures, is required.

1. Identify and select the company structure

The first step is to choose the right type of company in Paraguay for your business, since the structure will determine how your business operates. This should be based on the nature of the business, objectives, and goals, but also on the number of shareholders and the amount of money that is going to be invested.

The most common types of companies in Paraguay are as follows:

• Simplified Stock Company (Empresa por Acciones Simplificada or EAS): The EAS is a flexible company structure commonly used by entrepreneurs, startups, consultants, and foreign investors seeking a simpler corporate vehicle in Paraguay. It may be suitable for businesses that want a more streamlined incorporation and administration process.

• Corporation (Sociedad Anónima or SA): Corporations are the most common type of companies in Paraguay. This type of company requires a minimum of 2 shareholders (at least one has to be Paraguayan). There is also no minimum capital for the incorporation but USD $10,000 is required if the company’s business is export-related.

• Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL): In a Limited Liability Company the investor’s contribution is protected. It requires a minimum of 2 shareholders, at least one must be from Paraguay and the corporation registration process takes from 10 to 12 weeks.

Once you identify the company structure you can start with the company’s registration process.

2. Reserve and Verify the Company Name

As in many other countries, one of the first steps to set up a company in Paraguay is to check the availability of the desired name. Paraguay has no formal name-reservation step; the name is reviewed through SUACE (Sistema Unificado de Apertura y Cierre de Empresas) when the Ministry of Economy and Finance’s DGPEJBF issues its incorporation opinion.

3. Elaboration and signature of power of attorney

If your shareholders are not present in Paraguay, a Power of Attorney will be required that allows your legal representative to carry out the process locally. This Power of Attorney has to be signed by the corresponding party.

Also, consider that for foreign shareholders, additional documentation will be required.

All documentation that comes from abroad must be duly legalized and apostilled (if applicable), and these hard-copy documents must be sent to Paraguay. Finally, consider that documentation that is not in Spanish, will require translations to be accepted by the local agencies.

Although this step might sound cumbersome and time-consuming, it is a standard step when setting up a company in Paraguay. Nevertheless, there is another way in which you can incorporate a company in Paraguay without completing this step first. At the end of this article, be sure to ask us how.

4. Draft and notarize the company’s bylaws

The drafting of the company bylaws has to be carried out and signed by a local lawyer. You must consider that the bylaws must include:

• Company name

• Legal representative name

• Share capital information

• Company activities

• Registered / Legal address

• Management structure

• Extinction and liquidation details

The final articles of incorporation of your company must include the bylaws and all other required documents. Once these are completed, they have to be notarized and afterward submitted to the DGRP (Dirección General de los Registros Públicos), which is the Paraguayan Public registry, responsible for the approval and registration of the local companies.

5. Submit the documentation to the local centralized platform (SUACE)

The Paraguayan SUACE stands for ‘Sistema Unificado de Apertura y Cierre de Empresas’ and it is part of Paraguay’s Ministry of Industry and Commerce (MIC). Created by Law 4986/2013, it works as a one-stop shop for opening companies. Here, it is necessary to submit all the documentation, SUACE will then assign an identification number to track the process.

Through the SUACE, you’ll be able to submit all required documents to the right authority in order to complete the registration of the company. Submit all documents to the SUACE for revision and approval. The platform will assign an identification number to track the progress through the website.

It is also necessary to submit the bylaws and formation documents to the Dirección General de Personas y Estructuras Jurídicas y Beneficiarios Finales (Ministry of Economy and Finance), which now carries out the company review previously done by the Abogacía del Tesoro. Once the company is set up, its shareholders and beneficial owners must also be reported to the Registro Administrativo de Personas y Estructuras Jurídicas y Beneficiarios Finales.
Once your company is registered here, it officially exists.

6. Publication in the Paraguayan Official Gazette

Once the company is registered, the publication of an extract of the bylaws in the Official Gazette and any other wide-circulation newspaper is mandatory for at least 3 business days. The Official Gazette is the government publication in charge of communicating new actions and orders, as well as communicating the registration of new companies in the country.

7. Apply for a taxpayer ID (RUC) at the DNIT

The National Directorate of Tax Revenue, or Dirección Nacional de Ingresos Tributarios (DNIT, formerly SET), is the authority in charge of tax administration and collection in Paraguay. It was created by Law 7143/2023, which merged the former tax undersecretariat and the customs directorate. Here you will apply for your company’s taxpayer identification number, the RUC (Registro Único del Contribuyente). The set of documents and information to be presented include:

• • Tax ID (RUC) application via the DNIT registration form

  • Access code request via the corresponding DNIT form

  • Declaration act via the corresponding DNIT form

  • Copy of Identification of the Legal Representative

  • Biometric Registry

  • Signed documentation

You can also learn more in our step-by-step guide to obtaining your Tax ID in Paraguay.

8. Obtain your statutory company books

The books required by the Law and the Tax Regulations are, the Journal, General Ledger and Inventory. Additionally, Corporations must have: Attendance Book at Assemblies, Shares Registry Book, Obligations Registry Book, Act of Assemblies, Minutes of the Board of Directors.

Consider that these books are a requirement and must be signed by the Public Registry of Commerce.

9. Submit an application to the local Municipality for the verification and assessment of licenses and permits

In order for the business to start operating at an office or commerce, it is necessary to comply with all local regulations and get all the licenses and permits needed. The local municipality of each area is responsible for the surveillance and regulation of this. In case of not compliance, the company would have to pay a fine, or the Municipality can temporarily or permanently close the establishment.

10. Register as an employer with the Social Security Institute (IPS) and the Ministry of Labor (MTESS)

The Social Security Institute or Instituto de Previsión Social (IPS) is the government agency in charge of providing security services in case of illness or accidents. All companies must submit an application in order to get this insurance for their staff.

It is also necessary to register with the Ministry of Labor, Employment and Social Security (Ministerio de Trabajo, Empleo y Seguridad Social, MTESS) so the company can start hiring staff. The MTESS oversees labor relations, workplace safety and employment compliance in Paraguay. The application has to include information on all workers and their salaries.

SUACE sends the employer registration to IPS and MTESS automatically once the requirements are met.

11. Open a corporate bank account in Paraguay

Finally, It is important to choose the right bank according to the company’s needs. Each bank offers different types of accounts with many benefits depending on the agreement and goals of the company. It is recommended that the bank offers good pricing structures for international transactions.

Also, it is important to consider that some banks may have foreign transaction restrictions for companies that have foreign shareholders. It is crucial to take this into account as part of your company establishment strategy, as identifying a bank that has flexible policies will determine when your new company can start its operations.

After completing the incorporation process, businesses typically require ongoing accounting, payroll, corporate compliance, tax advisory, and legal representative services to remain compliant in Paraguay.

Get Assistance from Easyco Experts!

Paraguay is a strong country to set up a business because it is a country that is constantly in expansion and growing. To make sure your Paraguay company complies with local law, send us a message now.

Also, Easyco can help you protect your business in Paraguay with Trademark Registration services, or if you are already operating and are looking for a trusted Partner to outsource your tax and accounting. Migrating to Easyco is a hassle free process.

At Easyco, we make company formation in Paraguay easy; our team of corporate experts has vast experience helping companies and individuals set up their business in Paraguay, with a proven track record of success across all of our services. Easyco aims to tackle the complex company formation processes across LATAM. We make business registration easy by providing a hassle-free online company registration experience. Start your company in Paraguay today!