How to start a business in Paraguay as a foreigner (2026)

100% foreign equity ownership is permitted in all standard company types (EAS, SRL, SA). No prior government authorization, local partner, or minimum local shareholding is required; foreign investors enjoy equal legal rights to Paraguayan nationals under Law 5542/2015.

Law 6480/2020 created the EAS (Empresa por Acciones Simplificadas), formable by a single shareholder with no minimum capital, 100% online via the SUACE portal (eas.suace.gov.py), with approval typically within 24-72 hours. Registration simultaneously notifies the tax authority (SET), social security institute (IPS), and Ministry of Labor in a single submission.

The SRL (Sociedad de Responsabilidad Limitada) has no statutory minimum capital and requires at least two shareholders. The SA (Sociedad Anónima) requires minimum capital of 1,000× the monthly minimum wage (approximately USD 368,000) and at least two shareholders. Both types require designation of a resident legal representative, though shareholders need not themselves be residents.

The SUACE (Sistema Unificado de Apertura y Cierre de Empresas) portal integrates MIC, SET, IPS, and the Ministry of Labor, eliminating separate filings with each authority. Standard SRL/SA registration takes approximately 30-60 days end-to-end; EAS formation completes in 24-72 hours entirely online.

All company types must appoint at least one resident legal representative domiciled in Paraguay. Foreign shareholders are not required to be present in-country or hold residency themselves; a locally based attorney or representative satisfies this requirement.

Paraguay applies a 10% flat corporate income tax (IRACIS) on locally-sourced income only; foreign-sourced income is not taxed. Law 5542/2015 guarantees unrestricted repatriation of capital and profits with no exchange controls, and the country imposes no withholding on profit remittances beyond the standard dividend tax.