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Citizenship & Residency
São Tomé & Príncipe$90,000
Vanuatu$130,000
Grenada$235,000
St Kitts & Nevis$250,000
Turkey$400,000
UAE Golden Visa$545,000Why Paraguay?
Key advantages for foreign founders registering in Paraguay.
Lowest CIT in South America
10% flat corporate income tax — the lowest standard rate in all of South America.
MERCOSUR Member
Tariff-free trade with Brazil, Argentina, Uruguay. Strategic location between the three.
100% Foreign Ownership
No restrictions on foreign investment. Equal treatment under the Maquila regime.
Maquila Export Regime
1% effective tax rate on exported goods manufactured or assembled in Paraguay.
Low Operating Costs
Among the lowest labor, rent, and utility costs in the Americas. Competitive for manufacturing.
Young Population
7.4M people with a median age of 26. Growing consumer market and available workforce.
How Paraguay Compares
Side-by-side with South America’s top jurisdictions.
| Jurisdiction | CIT | Min Capital | Formation | Foreign Own. | Best For |
|---|---|---|---|---|---|
| 🇧🇷 Brazil | 15–25% | None | 2–4 weeks | 100% | LATAM’s largest market |
| 🇨🇴 Colombia | 35% | None | 1–2 weeks | 100% | Tech hub, Pacific Alliance |
| 🇨🇱 Chile | 27% | None | 1–2 weeks | 100% | Best governance, mining |
| 🇺🇾 Uruguay | 25% | None | 2–3 weeks | 100% | Fintech, free trade zones |
| 🇵🇾 Paraguay | 10% | None | 1–2 weeks | 100% | Lowest tax in SA |
| 🇵🇪 Peru | 29.5% | None | 2–3 weeks | 100% | Mining, Pacific Alliance |
| 🇦🇷 Argentina | 25–35% | None | 2–4 weeks | 100% | 47M market, talent pool |
| 🇪🇨 Ecuador | 25% | $800 | 2–3 weeks | 100% | Dollarized economy |
Entity Types Available
Choose the right structure for your business in Paraguay.
S.R.L. (Limited Liability)
Most popular for SMEs. Min 2 partners. Minimum capital PYG 2M (~$275). Simple governance.
- MIC registration
- Contrato Social
- SET tax registration
- IPS social security
- Registered address
- Bank account intro
S.A. (Corporation)
For larger operations. Min 3 shareholders. Board required. Can issue shares.
- MIC registration
- Estatutos
- SET tax registration
- Board setup
- Bank account intro
Branch (Sucursal)
Foreign company extension. Must register with MIC. Parent fully liable.
- MIC branch filing
- Certified parent docs
- Spanish translation
- SET registration
- Bank account intro
How It Works
Our managed formation process from inquiry to operational Paraguay company.
Name reservation & documents
Name check with MIC. Draft Contrato Social or Estatutos in Spanish.
MIC registration
Registration with Ministerio de Industria y Comercio and the commercial registry.
SET tax registration
Tax enrollment with Subsecretaría de Estado de Tributación. RUC number issued.
IPS & municipal registration
Social security (IPS) enrollment and municipal business license (Patente Comercial).
Bank account & operations
Introduction to Banco Continental, Itaú Paraguay, or Sudameris. Accounts in PYG and USD.
What’s Included
Formation Package
- ✓ Company registration & certificate
- ✓ Articles / founding documents
- ✓ Tax registration
- ✓ Registered address (1st year)
- ✓ Bank account introduction
- ✓ Compliance documentation
Documents You Receive
- 📄 Certificate of Incorporation
- 📄 Tax registration certificate
- 📄 Articles of Association
- 📄 Director & shareholder register
- 📄 Corporate seal (where applicable)
- 📄 Bank account confirmation
Tax Overview
Paraguay’s tax framework for corporate entities.
| Tax | Rate | Notes |
|---|---|---|
| Corporate Income Tax (IRACIS) | 10% | Flat rate — lowest in South America |
| VAT (IVA) | 10% | Standard rate; also the lowest in the region |
| Withholding Tax | 15% | On dividends to non-residents |
| Maquila Regime | 1% | Effective rate on exported maquila goods |
| Capital Gains | 10% | On disposal of assets; may be included in IRACIS |
| Personal Income Tax | 8–10% | Progressive; low rates |
Cost & Timeline Breakdown
Transparent pricing with no hidden fees.
| Item | Cost (USD) | Timeline |
|---|---|---|
| Name reservation | Included | 1 day |
| Contrato Social | Included | 1–2 days |
| MIC registration | Included | 3–5 days |
| SET tax enrollment | Included | 2–3 days |
| IPS social security | Included | 1–2 days |
| Bank account intro | Included | 3–5 days |
| Total Package | From $2,000 | 1–2 weeks |
All prices fixed — no hourly billing. Optional add-ons available on request.
Speak with a Paraguay Specialist
Our team will guide you through the optimal structure for your Paraguay business.
What Our Clients Say
Founders who registered through Sovera Global.
“Paraguay’s 10% CIT and Maquila regime made it perfect for our export assembly operations. Sovera handled MIC and SET efficiently.”
“Strategic location between Brazil and Argentina with MERCOSUR access. Lowest costs in the region. Sovera made banking straightforward.”
Official Resources
Key government agencies for company registration in Paraguay.
Frequently Asked Questions
Yes. 10% flat IRACIS — the lowest standard CIT in South America.
Yes. No restrictions on foreign ownership or profit repatriation.
Special export manufacturing regime with an effective 1% tax rate on exported goods.
SRL: 1–2 weeks including MIC, SET, and IPS.
Yes. Founding member with Brazil, Argentina, Uruguay.
SRL: PYG 2M (~$275). S.A.: PYG 100M (~$13,700).
Some banks allow remote opening. Traditional banks typically require in-person visit to Asunción.
Agriculture (soybeans, beef), manufacturing (maquila), energy (Itaipu dam), and growing services sector.
Ready to register in Paraguay?
Get your personalized quote with exact pricing, timeline, and required documents.
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