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Paraguay

Legal form:

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Delivery:

3 months

Price: $

$1,000

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Requirements:

Document checklist:

Local legal address (Handled by B2B Hub) 

1.Passport
2.Proof of Residence 

Registrar

Organization name

Abbreviation

Country

Paraguay

Email

Phone

Listing
Open website
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About

Paraguay

Capital
Official languages
Population 
Currency

ISO 4217

Asunción

Spanish and Guarani

6.8 million

Guarani

PYG

FAQ

Q: What is the process for company formation in Paraguay?

A: The process for company formation in Paraguay involves drafting and filing the company's articles of incorporation with the Public Registry, obtaining a tax identification number, registering with the Ministry of Industry and Commerce, and obtaining various licenses and permits as required.


Q: What are the requirements for company formation in Paraguay?

A: The requirements for company formation in Paraguay include at least two shareholders and one director, a minimum share capital, a registered office address in Paraguay, compliance with various regulations, and payment of the required fees.


Q: What types of companies can be formed in Paraguay?

A: The types of companies that can be formed in Paraguay include corporations, limited liability companies, partnerships, and branches of foreign companies.


Q: How long does it take to form a company in Paraguay?

A: The time it takes to form a company in Paraguay varies, but it typically takes around two weeks to complete the registration process.


Q: What are the tax implications for companies in Paraguay?

A: Companies in Paraguay are subject to corporate income tax on their worldwide income, but certain tax exemptions and incentives may be available to qualified companies.


Q: What is the legal system in Paraguay?

A: The legal system in Paraguay is based on civil law.


Q: What is the currency used in Paraguay?

A: The currency used in Paraguay is the Paraguayan guaraní (PYG).


Q: Can foreign nationals own a company in Paraguay?

A: Yes, foreign nationals can own a company in Paraguay.


Q: Are there any specific regulations for foreign-owned companies in Paraguay?

A: Foreign-owned companies in Paraguay must comply with various regulations, including foreign investment regulations and tax regulations.


Q: What are the benefits of forming a company in Paraguay?

A: Some of the benefits of forming a company in Paraguay include a strategic location in the heart of South America, a stable political and economic environment, a favorable tax regime, and a growing economy with a range of investment opportunities. Additionally, Paraguay offers incentives and support programs for businesses, including tax exemptions, free zones, and investment promotion programs.

Economy

Paraguay has seen a steady growth in its economy over the past few years. According to the World Bank, the country's GDP grew by 4.2% in 2019, and is projected to grow by 4.3% in 2020. This growth is largely driven by the country's strong agricultural sector, which accounts for nearly one-third of Paraguay's GDP. The country also has a strong manufacturing sector, which contributes around 20% of its GDP. Additionally, Paraguay has seen an increase in foreign direct investment, with the country receiving $1.3 billion in 2019. This has helped to boost the country's economic growth and create jobs. Overall, Paraguay's economy is on a positive trajectory, and the country is well-positioned to continue to grow in the coming years.

Taxation

In Paraguay, both individuals and corporations are subject to income tax. The tax year is the calendar year and tax returns are due on March 31st of the following year. The tax rates for both corporate and personal income are progressive, meaning that the more income earned, the higher the tax rate.


For corporations, the standard income tax rate is 25% of net income. However, there are certain industries and activities that may be eligible for a lower tax rate. For example, companies involved in exports may be eligible for a reduced rate of 15%.


For individuals, the tax rates are as follows:


- Income up to 36 million Paraguayan Guaranies (PYG) per year: 8%

- Income between 36 million and 108 million PYG per year: 10%

- Income between 108 million and 180 million PYG per year: 12%

- Income between 180 million and 360 million PYG per year: 15%

- Income over 360 million PYG per year: 10% on the excess


Individuals are also subject to a range of other taxes, including value-added tax (VAT), social security contributions, and property taxes.


Tax payments can be made in monthly installments or in a single lump sum. Taxpayers can also choose to pay their taxes electronically or in person at designated payment centers. Late payment of taxes can result in penalties and interest charges.

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