Paraguay has recently become a South American paradise where income you make outside of its borders will not be subject to a tax. Remote incorporation of the company in Paraguay is also possible – with no requirements regarding minimum authorised capital.
Why is it a great idea to incorporate a company and to open a bank account in Paraguay?
It is very difficult to find a fast developing country with a stable banking system today. But there are still such jurisdictions and Paraguay is one of them.
There are many ways to benefit from incorporating in Paraguay:
- You can register a company remotely and to open a bank account within 4-6 months for non -residents;
- Foreigners are welcome as beneficial owners of 100% of the company
- There are no requirements on minimum authorised capital.
- Secretary of the company is not required
- Territorial taxation allows Paraguayan companies to generate income outside Paraguay. This this income will not be subject to taxes. Paraguay is a South American rival of Hong Kong.
- Paraguay is not yet in CRS.
- Tax incentives are granted to foreign investors;
- Paraguay is not an offshore country. Therefore, there are no additional protective measures from other countries.
- Paraguay is part of the organization MERCOSUR, which unites the largest countries in South America into a single market.
- According to Moody’s rating agency, Paraguay’s banking system is considered highly stable. The economy of the country has been growing for several years. Paraguay is heading towards the bright future with a fast-developing economy.
- A local company has the right to open a bank account in a local bank. Some banks may require a minimum term of 1 year of commercial activities. They may also ask the company to keep a minimum deposit on the account.
- To open a corporate bank account, you will need the company’s Articles of Association and the identification document (cedula) of the company’s official representative. In other words, the representative must be a resident. You can do this after you obtain residence – or you can hire a professional director from Paraguay.
In general, banks will require invoices and other supporting documents for transfers.
How to register a company in Paraguay?
Most common business structures in Paraguay are LLCs (Limited liability company) and PLCs (Public liability company). The company needs to have at least 2 shareholders and 1 director. Director must be a resident or citizen of Paraguay.
Official languages In Paraguay are Spanish and Guarani. Translation of foreign documents into these languages may be required.
According to law, a company must have a physical office. An office and electricity bills are required for company registration.
Company registration takes 4-6 months and does not require your presence in Paraguay. However, if you intend to work in the capacity of director or manager of the company, a visit will be required.
Obtaining resident status in Paraguay is relatively easy.
Directorship in Paraguay
After you become a resident, you will need to present your biometric data and get a local ID card – cedula. In order to do so, you will have to visit Asuncion for a period of 1 week.
You can hire a resident to act as a director of your company. In this case, it is director who will be considered as a person responsible in front of authorities and banks. Also, a director is required to own at least 1% of company’s shares. We can help you with Nominal service and find a person who will become the 1% shareholder and the official representative of your company.
If at any time you decide to get permanent residency in Paraguay and become a director of the company, you will be able to regain the shares transferred to the professional director.
Which documents do I need in order to register a company?
A proof of identity (cedula, if you are already a resident or a passport without translation, if you are a non-resident)
An office lease agreement
After registration, you will receive a tax number – for all taxes, including VAT and income tax.
Once a company is registered, you may begin your commercial activity and open a bank account.
What do I need to do in order to open a bank account and what are the banking options?
We suggest you to open an account for your Paraguayan company in an old, reputable bank.
The bank offers classic banking services to its customers.
Bank accounts available:
Corporate bank account;
Personal bank account;
Accounts can be opened in Paraguayan Guarani (local currency – PYG) and in US dollars.
Visa, MasterCard, MasterCard Black and many other
Online banking is available for basic operations for both individuals and legal entities.
24 hours support
The fee for a company set-up and bank account opening in Paraguay
The fee for company registration and bank account opening is EUR 6999. Company registration, legal fees, assistance with paperwork and opening of the bank account are included.
Power of Attorney for company registration (please contact our consultant for more information)
Translation of documents – 30-40 dollars per page;
Office rent – from 300 EUR monthly
Accounting expenses – from 100 EUR monthly
Director or Manager with Paraguayan residence – 200 EUR monthly
Liquidation of the company- 200 EUR monthly
If you wish to register a company and open a bank account in person (or you are planning to become a director of the company), you will need to visit Asuncion for at least a week, so travel costs, accommodation and other expenses need to be included
Courier fee (in case original documents are required)
If you decide to register a company in Paraguay, here is what you need to do:
1) Contact us at firstname.lastname@example.org
We will provide you with a consultation and answer all your questions
2) You may proceed and pay the fee for our service – 6999 EUR for company registration and bank account opening.
You can pay via bank transfer, MasterCard, WebMoney, Western Union, Money Gram.
3) We will ask you to provide a full set of documents. In case you wish to travel to Asuncion, we can help you with organizing your trip
4) Once the company is registered we will proceed with bank account opening
After all documents are presented, the whole procedure takes from 4-6 months in total