Guide for foreign investors

How to open a company in Paraguay as a foreigner: complete 2026 guide

Paraguay has become one of South America's most competitive destinations to set up a company: low tax burden, openness to foreign capital and a relatively fast process. This guide explains, step by step, how to open your company in Paraguay as a foreigner.

Updated: May 2026 · By the Desembarco Paraguay team · Reading time: ~9 min

Why set up a company in Paraguay?

Paraguay combines a set of advantages that are uncommon in the region for anyone looking to establish or expand a business. Its tax framework is one of the simplest on the continent, with general rates of 10% for VAT, corporate income tax (IRE) and personal income tax (IRP).

On top of this come preferential access to MERCOSUR — a market of hundreds of millions of consumers —, macroeconomic stability sustained over years, and investment incentive regimes such as Law 7548/25, the maquila regime and free trade zones. For many investors, the combination of a low tax burden and openness to foreign capital is the main reason to choose the country.

Can a foreigner own 100% of a company?

Yes. One of the country's great advantages is that it does not require a local partner. Both foreign individuals and legal entities can hold the entire capital of a Paraguayan company.

The only relevant structural requirement is appointing a legal representative domiciled in Paraguay, who acts as the link with public bodies. This role can be held by a partner who processes their residency or by a trusted third party with the corresponding powers. If you don't yet have a trusted person in the country, it is common to delegate this figure to the advisory team during the initial stages.

Company types: EAS, SRL and SA

Choosing the right structure is the first important decision, because it defines costs, obligations and future flexibility. These are the three most commonly used types:

EAS — Simplified Shares Company

This is the most modern and agile form. It can be incorporated with even a single shareholder, has flexible capital requirements and a faster, cheaper registration process. For most startups and foreign SMEs arriving in the country, the EAS is usually the best option.

SRL — Limited Liability Company

A traditional and widely used structure, designed for a limited number of partners. It is a good alternative when there are several partners seeking a stable and predictable corporate organization.

SA — Corporation (Sociedad Anónima)

Suitable for larger projects, with several shareholders, the need to issue shares or more complex corporate structures. It involves greater formalities and maintenance costs.

Requirements to incorporate

While the exact documentation varies depending on the structure and investor profile, in general you will need:

• ID document or passport of the partners.
• Definition of the company name and business purpose.
• Appointment of a legal representative domiciled in Paraguay.
• A tax and legal domicile for the company.
• Articles of association adapted to the chosen structure.
• Apostilled and translated documentation when the partners are foreign or it is a foreign legal entity.

The process step by step

1. Diagnosis and choice of structure. The business model is analyzed to decide whether an EAS, SRL or SA is best.
2. Drafting of the articles of association. The constitutive documents are prepared and the partners' documentation is gathered.
3. Incorporation and registration. The company is registered with the relevant public registries.
4. Obtaining the RUC. The Single Taxpayer Registry is processed before the tax authority (DNIT), essential to operate.
5. Permits and bank account opening. Depending on the activity, sector permits may be required; in parallel, the corporate bank account is arranged.
6. Going live. The company is cleared to invoice (via electronic invoicing), hire staff and operate.

Estimated costs and timelines

Costs depend on the structure, professional fees and the specific permits for the activity. As a general reference for timelines, a well-managed incorporation is usually resolved within 2 to 4 weeks from the moment documentation is complete, until the RUC is obtained and the company is cleared to operate.

It is worth considering not only the initial incorporation cost, but also the recurring maintenance costs: monthly accounting, tax filings and, where applicable, payroll administration.

Taxes you will pay

The Paraguayan tax framework is one of the simplest in the region. The main taxes for a company are:

There are also special regimes — such as maquila or free trade zones — that can substantially change the effective tax burden for certain export-oriented business models. It is worth evaluating them case by case.

Common mistakes to avoid

• Choosing the wrong structure out of lack of knowledge, and later having to reorganize the company.
• Underestimating maintenance costs for accounting and taxes after incorporation.
• Not planning the owner's residency, which complicates banking operations.
• Incomplete or non-apostilled documentation, which delays the process by weeks.
• Ignoring sector permits required by the specific activity.

Frequently asked questions

This guide is for general informational purposes only and does not constitute specific legal or tax advice. Each case should be evaluated individually with a professional team.