Company Formation in Paraguay: EAS, S.A. and S.R.L. Explained (2026)
How foreigners actually open companies in Paraguay: the fully online EAS with no minimum capital, the classic S.A. and S.R.L., what the cédula requirement really means for non-residents, and the 10% flat tax structure that makes it worth the paperwork.
Doing business in Paraguay at a glance
Why founders incorporate in Paraguay
The pitch is unusually concrete: a flat 10% corporate income tax (IRE), 10% VAT, dividends taxed at 8% for residents, territorial treatment of foreign-source income, and — since Ley 6480/2019 created the Empresa por Acciones Simplificadas (EAS) — a company that can be opened entirely online, with no minimum capital, no notary for the standard statute, and approval in 72 working hours. Paraguay deliberately built one of the lightest incorporation regimes in South America, and the EAS is its flagship.
The catch that most "open a company in Paraguay from your laptop" articles bury: the legal representative of an EAS must hold a Paraguayan cédula, because the filing runs on Paraguay's electronic identity system, which is only issued to cédula holders. A foreigner without residency can still own the company — but must appoint a legal representative who qualifies, via a power of attorney (apostilled and translated if granted abroad).
That is why company formation and residency are usually sequenced together: obtain residency and your cédula first (or in parallel), then incorporate in your own name. It is also why the combination pages on this site exist — the company is rarely the whole plan; it is one leg of a structure that includes your residency and your tax position.
EAS vs. S.R.L. vs. S.A. — choosing the vehicle
Three structures cover practically every use case. For most foreign founders starting fresh in 2026, the EAS wins on speed and cost; the older forms still matter for specific situations.
| EAS | S.R.L. | S.A. | |
|---|---|---|---|
| Legal basis | Ley 6480/2019 | Civil/Commercial Code | Civil/Commercial Code |
| Shareholders | 1 or more | 2–25 partners | 2 or more |
| Minimum capital | None (must be coherent with the activity) | No statutory minimum in practice | No statutory minimum in practice |
| Formation | 100% online (SUACE), proforma statute free | Notarized deed + registration | Notarized deed + registration |
| Typical timeline | 72 working hours (proforma) / 8 working days (custom statute) | Several weeks | Several weeks |
| Corporate books / gazette publication | Not required | Required formalities | Required formalities |
| Best for | Startups, consultants, SMEs, holding operating activity | Small partnerships preferring the classic form | Larger structures, regulated activities, share classes |
Certain regulated activities (e.g. financial activities supervised by the BCP) cannot be run through an EAS without additional licensing. Verify your activity before choosing the vehicle.
Opening an EAS, step by step
- 1
Solve the legal representative requirement
If you hold a Paraguayan cédula (temporary or permanent residency), you can be your own legal representative. If not, appoint one by power of attorney — apostilled and translated into Spanish if signed abroad — or sequence your residency first so the company is fully in your hands.
- 2
Create the electronic identity
The legal representative registers their identidad electrónica on the government portal (paraguay.gov.py). This digital identity signs everything that follows — it is the actual gateway to the online system.
- 3
File the EAS on eas.mic.gov.py
Company name, activity (CIIU codes), shareholders, capital and domicile. Using the system-generated proforma statute the filing is free and targets 72 working hours; a customized statute (private document or public deed) extends it to about 8 working days plus notary fees.
- 4
Receive the RUC and register with the DNIT
Approval through SUACE includes the tax registration — your company's RUC. From this point the company exists, can invoice, and its compliance calendar (VAT declarations, annual IRE) starts running.
- 5
Open the bank account and formalize operations
Corporate bank onboarding is the slowest link in the chain — expect KYC on shareholders and origin of funds. Employer obligations (IPS social security) apply from the first hire. A local accountant handling monthly filings typically costs from around US$ 25–100 per month for small operations.
What a Paraguayan company pays (2026)
| Tax | Rate | On what |
|---|---|---|
| IRE — corporate income tax | 10% flat | Net Paraguay-source profits |
| IDU — dividend withholding | 8% (resident owners) · 15% (non-resident owners) | Profit distributions |
| IVA — VAT | 10% standard (5% reduced on select items) | Local sales of goods and services |
| INR — non-resident withholding | Effective ~15% | Payments to non-resident providers |
| IPS — social security | 16.5% employer + 9% employee | Payroll of local employees |
| SIMPLE/RESIMPLE regimes | Reduced simplified schemes | Small businesses under revenue thresholds |
Simplified general summary — activity-specific rules and thresholds exist. The combined effective burden on distributed profits for a resident owner (IRE + IDU) sits around 17.2%, among the lowest in the region.
A company is not a tax strategy by itself
A Paraguayan EAS does not magically convert foreign income into tax-free income, and it does not replace personal tax residency planning. What is taxed where depends on source rules, your personal residency, and substance. Structure the company, your residency and your invoicing flows as one system — ideally before the first contract is signed, not after.
The SUACE route: company + permanent residency in one move
For founders investing at least US$ 70,000 in a productive project, the SUACE one-stop system connects company formation with immigration: a MIC-approved business plan and a commitment to create five formal jobs for Paraguayan citizens leads to direct permanent residency via the Constancia de Inversionista Extranjero — no two-year temporary stage.
The trade-off is real obligations: the investment must be executed within its committed timeframe and the jobs must exist. It suits operators building an actual business in Paraguay; it does not suit paper structures. If your capital is passive, the Investor Pass modalities (tourism, BVPASA instruments, income real estate) are the honest alternative — see the dedicated guide.
Document checklist for foreign founders
Paraguayan cédula (or a qualifying legal representative)
The structural requirement. Residency + cédula lets you act as your own legal representative.
Passport / ID of every shareholder
Foreign shareholders without Paraguayan radicación attach their passport or home-country ID.
Power of attorney (if using a representative)
Granted before a notary; apostilled and sworn-translated into Spanish when signed abroad.
For corporate shareholders: apostilled corporate pack
Certificate of incorporation, tax ID of the home jurisdiction, representative powers and IDs of the individuals behind the entity — apostilled and translated.
Defined activity and coherent capital
No minimum capital exists, but the declared capital must plausibly cover the declared activity — incoherent filings draw observations and delays.
A local address and a working email
The declared company email is the official notification channel for the entire SUACE process — use one you actually read.
Company formation — frequently asked questions
The questions foreign founders ask before incorporating in Paraguay.
This guide is general information, not legal or tax advice. Corporate, tax and immigration rules in Paraguay change periodically; verify current requirements with the MIC, the DNIT or a qualified professional before incorporating.
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