Forming a Company in Paraguay: Key Steps

Published on September 30, 2025 and written by Cyril Jarnias

Paraguay offers a favorable environment for foreign entrepreneurs looking to establish their business. With advantageous tax policies and simplified procedures, the country is attracting more and more international investors. Here is a detailed guide to the steps required to create your company in Paraguay.

Key steps to launch your Paraguayan business

Choose the legal structure suited to your project

The first crucial step is to determine the most appropriate legal structure for your business. In Paraguay, the most common forms are:

• Corporation (S.A.)
• Limited Liability Company (S.R.L.)
• Sole Proprietorship with Limited Liability (E.I.R.L.)

Each form has its advantages and disadvantages in terms of liability, taxation, and management. A specialized attorney can advise you on the most suitable choice based on your situation.

Reserve your company name

Once the legal structure is chosen, you must check the availability of your desired company name with the Public Registry of Commerce. This reservation is valid for 30 days and can be renewed.

Draft and authenticate the bylaws

Your company’s bylaws must be drafted in Spanish and authenticated by a Paraguayan notary. This foundational document defines the operating rules of your business.

Deposit the share capital

The amount of share capital varies depending on the chosen legal structure. It must be deposited into a temporary bank account in the name of the company being formed.

Register with the Public Registry of Commerce

The official registration of your company is done with the Public Registry of Commerce. This step marks the legal birth of your business.

Obtain the tax identification number (RUC)

The RUC (Registro Único del Contribuyente) is essential for any commercial activity in Paraguay. It is obtained from the Undersecretariat of State for Taxes.

Register with social security agencies

Your company must register with the Social Security Institute (IPS) for the social coverage of its employees.

Administrative file: essential documents

For a Corporation (S.A.)

• Authenticated company bylaws
• Proof of share capital deposit
• Minutes of the constitutive meeting
• Copies of shareholders’ identification documents
• Proof of company address

For a Limited Liability Company (S.R.L.)

• Authenticated company agreement
• Proof of share capital deposit
• Copies of partners’ identification documents
• Proof of company address

For a Sole Proprietorship with Limited Liability (E.I.R.L.)

• Authenticated declaration of formation
• Copy of owner’s identification document
• Proof of business address

Optimize your establishment with local expertise

Although the business creation process in Paraguay is relatively simple compared to other countries, it is highly recommended to work with local professionals to ensure the success of your project:

• A business law attorney
• An accountant for tax management
• A notary for document authentication

These experts will guide you through the nuances of the Paraguayan system and help you avoid common pitfalls.

Average timeline to create your company

With proper support, your company can be operational in 4 to 6 weeks. The SUACE single window can even speed up this process for foreign investors.