Business in Paraguay

A business in Paraguay can be created by a Paraguayan or foreign founder. Formal registration normally begins through SUACE, the national one-stop service for opening, formalizing and closing businesses. SUACE can provide registration, a DNIT tax number known as the RUC, beneficial-owner registration and, depending on the case, IPS and MTESS employer numbers. A commercial patent or operating licence can be processed through SUACE in Asunción; outside Asunción, the relevant Municipalidad remains responsible. A RUC or SUACE filing does not replace a sector or location permit. An empresa unipersonal is operated by one natural person. An E.I.R.L. is an individual business with separate liability under its registration. An EAS is a simplified joint-stock company that can be formed by one or more natural or legal persons. It becomes a legal person when registered and generally limits liability to company assets after registration. Before registration, the founders can remain jointly and without limitation liable. An EAS has commercial legal status, may integrate its capital over up to two years and has no maximum initial capital. If the cash contribution exceeds Gs. 3,060,368,400, at least 20% must be paid at registration; the threshold is adjusted to the minimum wage. A single-member EAS cannot establish another single-member EAS. S.R.L. and S.A. follow their own incorporation and registration requirements. The EAS application is submitted online through eas.mic.gov.py. The main representative generally needs electronic identification and a Paraguayan Cédula. If a foreign shareholder lacks a Cédula or permanent residence, the representative usually needs a Paraguayan Cédula or permanent residence and an apostilled or legalized power of attorney. Foreign board members generally need permanent residence. A compliant pro-forma statute can be processed in 72 business hours, while another instrument or a public deed can take about eight weeks. A formal objection normally has to be corrected within three business days. The resulting documentation can include the constitution, RUC, IPS and MTESS employer numbers, beneficial-owner records and registration of legal persons or structures. Other legal forms may require a SUACE form, identity documents, statutes or deeds, public-register evidence and information about representatives and shareholders. Notarial, registration, municipal, sectoral and other institutional charges may apply. SUACE formalization is described as free in its FAQ, but the law allows a SUACE charge of up to seven daily wages, in addition to institutional, notarial, municipal and sector-specific fees. Costs and processing times should therefore be checked for the chosen form, activity and municipality. The tax number RUC is administered by DNIT through Marangatu. Documents uploaded to the system must be legible, normally in PDF format, with each file up to 10 MB and identification documents shown on both sides. The business must report changes to its activity, address, obligations and other registered information. The IRE, or business income tax, includes the SIMPLE and GENERAL regimes at 10%, but the applicable regime depends on the activity and relevant thresholds. IRE SIMPLE can involve invoices, invoice registers, tax returns, advance payments and withholding obligations. IRE GENERAL additionally requires financial statements. IVA, IRP and ISC may apply depending on the activity. RESIMPLE is available to an empresa unipersonal with annual turnover of no more than Gs. 80,000,000. Its rules include a Boleta Resimple, communication of invoice numbers, monthly or quarterly payment and an annual return in February; the research basis states monthly amounts of Gs. 20,000 to Gs. 80,000. The applicable tax treatment should be confirmed against the current activity and DNIT requirements rather than chosen only by business preference. Ongoing formal duties can include issuing comprobantes, filing and paying taxes, keeping books and supporting documents, updating RUC information, and reporting beneficial-owner or company-data changes. Once employees are hired, the business may need IPS employer registration and MTESS employer registration. Employment and labor-law questions follow separate rules from the business-formalization process. Paraguay's MIPYMES framework is governed by Ley 7444/2025 and Decreto 4535/2025. The Viceministerio de MIPYMES within MIC oversees the system and RENAMIPYMES records eligible businesses. A digital Cédula MIPYMES is free and can be issued automatically at RUC registration for qualifying businesses, with annual updating. MIC classifications state a micro business turnover limit of Gs. 1,000,000,000 and a small-business limit of Gs. 5,000,000,000. A qualifying micro business may receive a 100% exemption from the commercial patent and certain state-service payments for three years, while a qualifying small business may receive a 75% reduction for three years. Conditions and later reductions depend on the category and implementation rules. Micro businesses must keep an income-and-expense book. FONAMIPYMES is provided for by law, but the Cédula MIPYMES does not create an automatic right to credit. CAE and IncuCAE can support early formalization, advice, training and market connections. SBDC services provide information, training and technical business assistance, although regional availability varies. A Cédula MIPYMES can improve access to financing, markets and public programs without guaranteeing support. Investment projects may apply electronically through the VUE under Ley 7548/2025 and Decreto 5432/2026. MIC reviews the project, the Consejo de Inversiones assesses it, and MIC and MEF issue the joint approval. Benefits, costs, investment and employment parameters, public benefits and deadlines depend on the project. Some activities require additional approval. Education may involve MEC, financial or currency-exchange activities may involve the BCP or its Superintendencia, mining and extraction require specialized permits, maquila requires a joint MIC and MEF resolution, and a free zone requires a concession or use agreement. Finance and insurance businesses do not follow the ordinary business-starting path. A foreign individual may obtain a RUC with identification or a passport and valid permanent residence under Migración. Investor residence through Dirección Nacional de Migraciones and SUACE is a separate migration procedure; the cited portal lists Gs. 2,787,550, subject to current verification. Closing a business requires more than stopping activity. For an EAS, dissolution, liquidation and amendments are handled through SUACE. Dissolution can require a deed or standard form, a tax-compliance certificate, closure of the commercial patent and two assembly communications. Liquidation involves a liquidator, registration of final financial statements and evidence that tax, employment and other debts have been addressed. DNIT RUC cancellation differs by form: an individual uses identification, an E.I.R.L. uses its registered dissolution deed, a legal person uses registered dissolution and liquidation documents, and an EAS follows the SUACE and DNIT process. IPS, MTESS, the Municipalidad and any sector authorities may also require separate closure or deregistration, together with final returns and payments. No single national completion period applies to every business. Informal activity may provide a practical entry path, but it does not create an equivalent legal person, liability protection or the same access to formal markets, programs and social insurance. Municipal requirements vary by location, while sector rules vary by activity and legal form.