Start A Business In Paraguay

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Paraguay's Business-Friendly Haven...

Reviewed by Kathleen Peddicord

Kathleen is the Live and Invest Overseas Founding Publisher. She has more than 30 years of hands-on experience traveling, living, and buying property around the world.


Under the Paraguayan Constitution, everybody (whether Paraguayan or foreign) has the right to go into any business sector they wish, provided only that the activity is legal.

No specific permission from the government is required.

You just have to inform them, then go ahead and start your business.

Paraguayreally rolls out the red carpet for foreign business people and it is easy to gain the attention of high-level government officials, even if your project is relatively small—one of the benefits of doing business in a small economy.

Formation Of Companies In Paraguay

By Latin American standards, it’s quite easy and inexpensive to form a company in Paraguay, though you should not think of a Paraguayan company as an offshore, IBC-type vehicle.

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The main Paraguayan company types are LLCs (known as SRLs in Spanish) and SAs (socidedades anonimas, or companies with share capital). The main differences can be summarized as follows:

DetailsSRLSA
Minimum capitalNone, but the capital specified must be at least 50% paid inNone, but must be adequate for the business to be undertaken
Number of membersBetween 2 and 25At least 2 shareholders
Form of sharesNon transferable participationsBearer or registered shares
Managers and/or directorsMinimum 1, must be Paraguayan citizen or residentMinimum 1 director, must be Paraguayan citizen or resident, plus 1 internal auditor
Other important featuresMay not engage in banking, insurance, or financial services businessMay apply for stock exchange listing
Time to set upAlmost immediate45–60 days

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