Starting a Business · Paraguay
Starting a business in Paraguay: foreigner's guide (2026)
Paraguay shaded by its starting a business status
Paraguay permits 100% foreign equity ownership across all standard business structures with no sector-wide restrictions, and equal legal treatment is guaranteed under the Foreign Investment Law (Law 5542/2015). The government's SUACE one-stop portal allows foreigners to incorporate an EAS (Simplified Shares Company) entirely online in as little as 24–72 hours with no minimum paid-in capital. Conventional SRL and SA structures take 30–60 days but are equally open to foreign investors, with only the SA carrying a significant minimum-capital requirement.
Key points
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.
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Last verified 5/24/2026 · Orientation, not legal advice - verify against the primary sources linked above. Explore the full world map →