Paraguay Sole Proprietorship (Unipersonal) 2026

What Is a Unipersonal?

A unipersonal is an individual operating a business in their own name. It is not a company - there is no separate legal personality, no corporate veil, and no distinction between personal and business assets.

In Paraguay, this means you register as a persona física (individual) with DNIT for a RUC, select your business activities, and begin operating. No SUACE formation, no notary, no public deed, no corporate governance requirements.

Key characteristics:

• Ownership: Single individual only
• Legal personality: None - business and person are the same
• Liability: Unlimited personal - all personal assets exposed
• Formation: RUC registration as persona física, 1-3 days
• Capital: None required
• Governance: None - individual controls all decisions

When It Makes Sense

A unipersonal can be appropriate in specific situations:

• You are a solo operator testing a business idea before committing to formal incorporation
• Your business has low risk of liability (consulting, freelance services)
• You need to start operating immediately and will upgrade later
• Your income is below the IRE Simple threshold and you want simplified tax compliance

In most other cases - especially for foreign founders, businesses with employees, physical premises, inventory, or significant revenue - an EAS provides better protection with minimal additional effort.

Unipersonal vs EAS Comparison

Tax Treatment

Unipersonales can access simplified tax regimes designed for small taxpayers:

• RESIMPLE: For annual income up to Gs. 80,000,000. The simplest filing requirements - reduced reporting burden, simplified calculations.
• IRE Simple: For annual income up to Gs. 2,000,000,000. Slightly more detailed reporting than RESIMPLE but still simplified compared to the standard regime.
• Standard IRE: For annual income above Gs. 2,000,000,000. Full income tax compliance with standard reporting requirements.

IVA (10%) applies to taxable activities regardless of which income tax regime the unipersonal uses. Invoicing is done through DNIT's free e-Kuatia'i electronic system.

For the full tax analysis, see the corporate tax guide.

Obligations

Even though a unipersonal is simpler than a company, it still has compliance obligations:

• Monthly tax filings: IVA and IRE declarations to DNIT, even in months with no activity
• IPS: Mandatory if you have employees (16.5% employer contribution). Voluntary for self-employed without employees.
• Commercial patent: Municipal requirement to operate a business - varies by municipality
• Accounting: Basic books required by law, even under simplified regimes

The compliance burden is lighter than for SA or SRL, but it is not zero. Missing monthly filings creates penalties and compliance gaps.

How to Upgrade to EAS or SRL

When the business grows or the risks of unlimited liability become unacceptable, the unipersonal can transition to a formal entity. The process is a re-incorporation, not a conversion:

1. Form the new entity - EAS (online, 72 hours) or SRL (notary, 15-30 days)
2. Transfer business activities - Move the RUC activities, contracts, and operations to the new entity
3. Transfer assets - Move inventory, equipment, bank balances, and intellectual property
4. Notify counterparties - Update clients, suppliers, and banks with the new entity information
5. Close or maintain the unipersonal - Either cancel the persona física RUC or keep it dormant with no-movement returns

The transition is straightforward for EAS since no notary is required. For SRL or SA, the standard notary and Public Registry steps apply.

Advantages and Disadvantages