How to Register a Business in Paraguay: SRL Guide for Foreign Residents

The SRL (Sociedad de Responsabilidad Limitada) is the most common business structure for foreign residents establishing a company in Paraguay. It is the equivalent of a limited liability company (LLC in the US, Ltd in the UK) — owners are not personally liable for company debts beyond their capital contributions.

Why Form an SRL in Paraguay?

• Corporate tax: Paraguay's corporate income tax is 10% flat on Paraguayan-source income. Income from foreign clients or markets is treated as foreign-source and taxed at 0% under the territorial system.
• No minimum capital requirement above a nominal amount
• Straightforward structure: SRL with 2 or more quotaholders (shareholders) is the standard format
• Fast registration: Typically 4–8 weeks from document submission to registration completion

Requirements for Foreign Residents

Foreign residents can form and own SRLs in Paraguay. Requirements include:

• At least 2 quotaholders (can be individuals or corporate entities, foreign or local)
• A registered address in Paraguay — the company must have a local address for official communications
• A registered agent or local representative — required for companies without a Paraguayan resident director
• A notarized company statute (acta constitutiva) — the foundational document defining the company's structure and purpose

The Registration Process

Step 1: Prepare the company statute (acta constitutiva) with a Paraguayan notary public. The statute defines: company name, purpose, capital structure, quotaholder details, management structure.

Step 2: Register with the DGRP (General Directorate of Public Records). This creates the official company record and issues the company registration number.

Step 3: Register with the SET (tax authority) to obtain the company RUC number. This is the business tax ID.

Step 4: Open a company bank account at a Paraguayan commercial bank. Banco Continental is the most common choice for company accounts.

Step 5: Register with MTESS (Ministry of Labour) if you plan to employ Paraguayan staff.

Timeline and Costs

The full registration process typically takes 4–8 weeks from initial engagement with a local lawyer or service provider.

Costs vary depending on the provider and scope of service. Budget approximately $800–$1,500 USD for a complete SRL formation including notary fees, registration fees, and professional service fees.

RUC and Tax Registration

After company registration, the company RUC is obtained from the SET. This enables the company to issue invoices, file tax returns, and operate formally within Paraguay's fiscal system.

View our residency and business packages — our business incorporation service covers the full SRL formation process alongside your personal residency application.