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.
Paraguay really 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.
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:
| Details | SRL | SA |
| Minimum capital | None, but the capital specified must be at least 50% paid in | None, but must be adequate for the business to be undertaken |
| Number of members | Between 2 and 25 | At least 2 shareholders |
| Form of shares | Non transferable participations | Bearer or registered shares |
| Managers and/or directors | Minimum 1, must be Paraguayan citizen or resident | Minimum 1 director, must be Paraguayan citizen or resident, plus 1 internal auditor |
| Other important features | May not engage in banking, insurance, or financial services business | May apply for stock exchange listing |
| Time to set up | Almost immediate | 45–60 days |