Paraguay Company Types Compared 2026

Side-by-Side Comparison

Five practical structures are available to operate a business in Paraguay. The right choice depends on ownership model, investor expectations, governance tolerance, banking needs, and how the entity fits into the founder's broader structure.

EAS - Empresa por Acciones Simplificada

The EAS was created by Law 6480/2020 as a simplified company form designed for entrepreneurs, independent professionals, and small-to-medium businesses. It has become the most common choice for new company formation in Paraguay.

Key characteristics:

• Formation: 100% online through the SUACE platform (eas.mic.gov.py) in approximately 72 business hours. No notary, no public deed, no newspaper publication, no Public Registry filing.
• Shareholders: One or more - individuals or legal entities, foreign or domestic.
• Capital: No minimum required. No deposit at BNF needed.
• Liability: Limited to the amount of committed contributions. Personal assets of shareholders are protected.
• Governance: A designated legal representative. No requirement for síndico (trustee), shareholder meeting formalities, or libros societarios.
• Transfer: Ownership transfers are simple electronic transactions.
• Banking: BNF and Banco Continental accounts can be opened online during EAS formation via eas.mic.gov.py. Other banks require standard account-opening procedures.
• Formation document: Can be a private instrument with certified signatures or a proforma statute through the SUACE platform.

The EAS acquires separate legal personality from the moment of registration with the Ministry of Finance (MH). It does not need to be registered in the Public Registry of Commerce.

SA - Sociedad Anónima (Corporation)

The SA is a traditional corporate form governed by the Paraguayan Civil Code and Law 1.034/83 (Commercial Code). It is designed for larger businesses, companies with multiple shareholders, or cases where counterparties expect a formal corporate structure.

Key characteristics:

• Formation: Public deed (escritura pública) via notary, registered in the Public Registry. Timeline: approximately 8–30 business days.
• Shareholders: Minimum 2, no maximum limit.
• Capital: No statutory minimum, but must be reasonable for the business. 100% of capital must be subscribed at incorporation. Shares are nominative.
• Notary cost: 0.75% of corporate capital, plus publication expenses and legal drafting fees.
• Liability: Limited to the amount of shares held.
• Governance: Board of directors (one or more), a síndico (trustee/supervisor) appointed by shareholders, and formal shareholder meetings (ordinary and extraordinary). Directors serve one fiscal year unless bylaws specify otherwise.
• Corporate books: Required - Libro Diario (daily book), Libro Mayor (general ledger), Libro de Inventarios y Balances (inventory and balances).
• Transfer: Shares transferred by endoso (endorsement). Bylaws may impose special conditions.
• Reserve fund: 5% of net profits must be set aside annually until the reserve reaches 20% of subscribed capital. Dividends may only be paid from net profits.
• Publication: Required in a newspaper of general circulation.

Directors and síndicos must be Paraguayan or foreigners with legal residency. The SA acquires separate legal personality upon registration at the Public Registry.

SRL - Sociedad de Responsabilidad Limitada (Limited Liability Company)

The SRL is a traditional partnership-style entity governed by the Civil Code. It is commonly used for closely held businesses, family companies, and partnerships with a limited number of participants.

Key characteristics:

• Formation: Public deed (escritura pública) via notary, registered in the Public Registry. Timeline: approximately 15–30 business days.
• Partners: Minimum 2, maximum 25.
• Capital: No statutory minimum, but must be adequate for the business. Capital is divided into nominal quotas of at least Gs. 1,000. At least 50% must be subscribed and deposited at Banco Nacional de Fomento (BNF) at incorporation. The deposit is reimbursed in local currency.
• Notary cost: 0.75% of corporate capital, plus publication and legal drafting.
• Liability: Limited to the amount of contributions.
• Governance: One or more gerentes (managers), who may be partners or not. No síndico required. All partners participate in decisions. Changes to purpose, transformation, merger, or charter amendments requiring more responsibility need unanimous consent.
• Transfer restrictions: If the SRL has fewer than 5 partners, quota transfers require unanimous approval. If 5 or more, partners representing 3/4 of capital must approve.
• Reserve fund: 5% of net profits set aside annually until reaching 20% of capital.
• Publication: Required in a newspaper of general circulation.

Managers must have Paraguayan residency. Lack of registration does not void the SRL contract but creates joint and unlimited liability for all partners toward third parties for acts prior to registration.

Branch / Representative Office

Foreign companies can establish a branch (sucursal) or representative office in Paraguay without creating a new legal entity. The branch operates as an extension of the foreign parent company.

Key characteristics:

• Formation: Requires apostilled or legalized parent-company documents: bylaws, board resolution to establish the branch, powers of attorney for branch managers. Registered at the Public Registry. Timeline: approximately 45–60 days.
• Ownership: Follows the foreign parent structure. No separate shareholders needed.
• Liability: The foreign parent company is liable for the branch's obligations - there is no separate limited liability.
• Legal personality: The branch does not have a separate legal personality from the parent company. It is considered domiciled in Paraguay for local transactions.
• Governance: The parent company appoints a representative with power of attorney. Representatives are subject to the same responsibilities as administrators under the Civil Code.
• UBO filing: Required within 45 business days of registration, same as other entities.
• Tax: The branch is treated as a Paraguayan taxpayer for local income, subject to the same tax obligations as domestic entities.

Unipersonal - Sole Proprietorship

The unipersonal is not a company type - it is an individual operating a business in their own name. It has no separate legal personality, which means the owner has unlimited personal liability for all business obligations.

Key characteristics:

• Formation: Register as persona física (individual) with DNIT for a RUC. No SUACE formation, no notary, no public deed. Can be operational in 1–3 days.
• Ownership: Single individual only.
• Capital: None required.
• Liability: Unlimited personal - the owner's personal assets are exposed to business debts and obligations.
• Tax: Can access IRE Simple (simplified income tax for income up to Gs. 2,000,000,000) or RESIMPLE (for income up to Gs. 80,000,000). IVA applies to taxable activities.
• Invoicing: Uses DNIT's e-Kuatia'i electronic invoicing system.
• Banking: Harder to open business bank accounts - banks typically prefer entities with separate legal personality.

The unipersonal can be a useful starting point for testing a business before committing to formal incorporation. See the full sole proprietorship guide for details on when it makes sense and how to upgrade to EAS, SRL, or SA later.

Beneficial-Owner (UBO) Filing for All Entity Types

Law 6446/2019 requires all legal entities - EAS, SRL, SA, and branches - to file beneficial-owner information with the Ministry of Finance (Ministerio de Hacienda). This is not optional and applies regardless of entity type or size.

Deadlines and requirements:

• Initial filing: Within 45 business days of registration in the Public Registry (or EAS formation with MH).
• Annual update: Before June 30 of each year, even if no changes have occurred.
• UBO definition: The natural person who (in priority order): holds 10%+ of capital; controls 25%+ of voting rights; frequently uses or benefits from entity assets; has the right to appoint/dismiss administrators; or has control by virtue of statutes or other instruments.

Accounting and Annual Obligations by Entity Type

The accounting burden varies significantly by entity type. Here is what the law requires:

How to Choose the Right Company Type