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Understand the Jurisdictions Setup Requirement Before Proceed Your Paraguay Company Incorporation Services
Bordered by Argentina, Brazil and Bolivia, Paraguay is the next destination in the South American continent that entrepreneurs are looking towards when it comes to starting a business. Why choose to setup a business in Paraguay?
Because it is a business-friendly haven that welcomes entrepreneurs from all over the word. It is relatively easy to setup a business in the country, and every entrepreneur will have the right to go into any business sector that they want as long as the business activities are legal. There is no specific permission required, or too much restrictions imposed. All you would need is the capital, research, business plan and proper documentation to begin setting up your business.
Why Setup Business in Paraguay?
If you are ready to begin your business in Paraguay, 3E Accounting can assist with your Paraguay company incorporation services. But first, let’s explore the benefits that you stand to gain from starting a business in this region:
- No Restrictions on Foreign Ownership – This one is important to note, because it means that business owners will be able to own local companies and benefit from the remittance of capital flow and profits.
- Quick Constitution of Legal Entities – In Paraguay, there’s no minimum capital which is required by law for you to establish a legal entity for commercial purposes. The constitutions of these legal entities are also a relatively quick process.
- Lowest Tax Rates in MERCOSUR – Another great reason to invest in setting up a business in Paraguay are the low tax rates available. Corporate tax rates in Paraguay range at 10% on reinvested earnings and 15% on undistributed profits. If the company was distributing its profits to partners abroad for example, the tax rate would be 30%. The VAT rate in Paraguay on the other hand, is a maximum of 10%, while the excise rates in the country do not exceed more than 13%.
- The Free Trade Zones Available – Commercial activities which are conducted in the Free Trade Zone are exempted from national, municipal and departmental taxes. Any goods or services which are received within the Customs Territory to Paraguay’s Free Trade Zone will get the same tax treatment which is granted to exportations. This means they will be exempted from VAT.
What Does the Paraguay Company Incorporation Process Involve?
To incorporate a company in Paraguay, you would need to follow the steps below:
- Select a unique business name for the company, and have it verified that it is unique.
- Draft your company’s deed, bylaws and articles of association
- Have the documents notarized by a licensed public notary. These documents must be notarized and all the company’s books must be registered at the companies registry called the Dirección General de Los Registros Públicos and the Treasury Attorney Office Abogacía del Tesoro.
- Submit your documents through a single access window called the Sistema Unificado de Apertura de Empresas SUAE. This process will take up to 20 days.
- Receive your Tax Identification Number (TIN) once you have submitted your application online with the Tax Authority. A TIN is needed for VAT, income tax and various other types of taxes.
- Register all the directors, shareholders, place and date of the assemblies at the Treasury Attorney Office.