The question comes up in almost every message I receive from aspiring expatriates: can you really create a company in Paraguay without a local network, and how long does it actually take? The answer sums up in one name: SUACE, the one-stop shop for company creation, which considerably shortened a process previously fragmented across a dozen agencies. This guide details the available legal structures, the real administrative process, and the IRE taxation that applies once the company is registered.
In summary: what to remember
The essentials before getting started
- •SUACE (Sistema Unificado de Apertura y Cierre de Empresas) is the one-stop shop: maximum legal deadline of 20 calendar days once the complete application is submitted
- •EAS (Empresa por Acciones Simplificada) is the fastest structure to set up, designed for small businesses and solo entrepreneurs
- •SRL and SA remain the classic structures, heavier to set up but better recognized by banks and business partners
- •IRE (Impuesto a la Renta Empresarial) is 10% on net profit from Paraguayan sources, with simplified regimes for small structures
- •Distributed dividends are taxed separately through IDU: 8% for a resident, 15% for a non-resident
SUACE, the one-stop shop that changed the game
Before the creation of SUACE by Law No. 4986/2013 (extended since by Law No. 6867), opening a company in Paraguay meant dealing separately with the notary, the Public Commerce Registry, SET for the RUC, social security (IPS), and the municipality for the business license. SUACE groups these procedures into a single process, largely digitalized, run by the Ministry of Industry and Commerce (MIC).
The law sets a legal cap of 20 calendar days for the entire process, provided the application is complete from the start. For the simplest structures like EAS, the actual timeline is usually shorter: around 8 business days according to firms that handle the process. An application deemed incomplete and not followed up by the applicant for more than 10 business days is classified as abandoned, so you need to stay responsive during processing.
Choosing your structure: EAS, SRL, or SA
Three structures cover most needs. The EAS (Empresa por Acciones Simplificada), introduced by Law No. 6480 of 2021, is designed for speed: a single shareholder is enough, bylaws can be drafted from standard templates, and incorporation is largely done online. It is the default option for a freelancer, consultant, or small service company.
The SRL (Sociedad de Responsabilidad Limitada) remains the most widespread structure among family SMEs and traditional businesses: it requires at least two partners and a defined share capital in the bylaws, but it is well recognized by local banks and suppliers. The SA (Sociedad Anónima) is reserved for larger structures or those planning to open capital to investors: heavier formalities, stricter accounting obligations, but reinforced credibility for raising funds.
| Quick comparison of structures | ||
|---|---|---|
| EAS | 1 shareholder minimum | Fastest to set up, suited to freelancers and small structures |
| SRL | 2 partners minimum | Classic structure, well recognized by banks, intermediate formalities |
| SA | 2 shareholders minimum | Large structures, capital opening possible, reinforced accounting obligations |
The RUC and IRE taxation
Once the company is registered, it receives its own RUC (Registro Único de Contribuyentes), separate from the manager's personal RUC. This number is used for invoicing, declaring, and paying the IRE (Impuesto a la Renta Empresarial), the tax that replaced the former IRACIS. The general rate is 10% on net profit from Paraguayan sources, which remains among the lowest rates in the region for a standard commercial company.
| The three IRE regimes by company size | ||
|---|---|---|
| General regime | Annual turnover above 2 billion Gs | 10% on net profit, full accounting required |
| IRE SIMPLE | Annual turnover up to 2 billion Gs | Simplified regime for SMEs, reduced accounting obligations |
| IRE RESIMPLE | Annual turnover up to 80 million Gs | Optional regime for micro-enterprises and freelancers |
On top of this comes the IDU (Impuesto a los Dividendos y a las Utilidades), which separately taxes dividends distributed to partners: 8% if the partner is a tax resident in Paraguay, 15% if a non-resident. This is a point to anticipate in the setup: a partner who remains tax domiciled in France will pay IDU at the higher rate on what they repatriate, in addition to the French tax treatment applicable to that income.
Foreign investors: what changes
Paraguay imposes no nationality restrictions for creating or owning a company: a foreigner can be the sole shareholder of an EAS or SRL without a mandatory Paraguayan partner. REDIEX (Red de Inversiones y Exportaciones), under the Ministry of Industry and Commerce, specifically supports foreign investment project promoters and centralizes information on sectoral incentive regimes, including Law 60/90 for export activities in the maquila zone.
A practical point: incorporating the company does not exempt you from immigration procedures. Without residence, the foreign manager must separately resolve their stay status, see the permanent residence page. There is also a specific residence regime for investors going through SUACE, distinct from the standard residence procedure.
What I recommend before getting started
Paraguay is not an administrative paradise with zero friction: the SUACE legal deadlines are caps, not guarantees, and a poorly prepared application easily extends beyond. But compared to the multi-window process that prevailed before 2013, the improvement is real, and partly explains the growing interest of foreign entrepreneurs in the country.
Last updated:
Sources
- SUACE - Sistema Unificado de Apertura y Cierre de Empresas (2026)
- MIC - Dirección General del SUACE (2025)
- Ley n° 6867 que modifica la ley n° 4986/2013 sobre el SUACE (BACN, texto oficial) (2021)
- DNIT - Impuesto a la Renta Empresarial (IRE) (2025)
- DNIT - Impuesto a los Dividendos y a las Utilidades (IDU) (2025)
- SET - Subsecretaría de Estado de Tributación (2025)
- REDIEX - Red de Inversiones y Exportaciones (2025)
- MIC - Ministerio de Industria y Comercio (2025)
My method
This page is written from France, sourced as carefully as possible, but I can be wrong or miss on-the-ground detail. A price that changed, outdated info, a photo to share? Every correction is credited if you want.
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