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Ease of Doing Business in

Paraguay

Paraguay Download Profile (1728.8KB, pdf)
Region Latin America & Caribbean
Income Category Upper middle income
Population 6,639,123
GNI Per Capita (US$) 4,220
City covered Asuncion

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 106 102 down
4
59.03 59.10 down
0.07
Starting a Business 143 133 down
10
77.53 77.52 up
0.01
Dealing with Construction Permits 56 55 down
1
73.70 73.63 up
0.07
Getting Electricity 102 98 down
4
67.12 67.11 up
0.01
Registering Property 76 75 down
1
66.12 66.11 up
0.01
Getting Credit 101 78 down
23
45.00 50.00 down
5.00
Protecting Minority Investors 137 136 down
1
41.67 41.67
-
Paying Taxes 153 153
-
54.64 54.64
-
Trading across Borders 116 129 up
13
64.03 60.37 up
3.66
Enforcing Contracts 74 74
-
59.77 59.77
-
Resolving Insolvency 102 102
-
40.70 40.18 up
0.52

Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

DB 2017 Rank: 143

DB 2016 Rank: 133

Change in Rank: down10

DB 2017 DTF (% points): 77.53

DB 2016 DTF (% points): 77.52

Change in DTF (% points): up0.01

Standardized Company
Legal form: Corporation (Sociedad Anónima or SA)
Paid-in minimum capital requirement: PYG 0
City: Asuncion
Indicator Paraguay Latin America & Caribbean OECD high income
Procedure – Men (number) info_outline 7.0 8.3 4.8
Time – Men (days) info_outline 35.0 31.6 8.3
Cost – Men (% of income per capita) info_outline 39.8 31.5 3.1
Procedure – Women (number) info_outline 7.0 8.3 4.8
Time – Women (days) info_outline 35.0 31.6 8.3
Cost – Women (% of income per capita) info_outline 39.8 31.5 3.1
Paid-in min. capital (% of income per capita) info_outline 0.0 2.3 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Check the uniqueness of the proposed company name

    Agency: Commercial Registry

    Business entrepreneurs must verify the uniqueness of the proposed company name.
    1 day no charge
    2

    Draft the company deeds, signed by an attorney

    Agency: Attorney

    Because company formation documents must comply with corporate laws and regulations, companies customarily resort to legal professionals. Registration and filing of applications (e.g., bylaws to the Treasury Attorney Office, to the court, to the registries) must be signed by an attorney either as the founders’ agent or counsel.

    The organization of companies by attorneys acting through powers of attorney is also a common practice. The fee for this formality is about 1% to 3% of the company’s paid-in capital stock. Article 72 (1) of Law No. 1376/88 establishes the official legal fee for this task.
    5 days 1 - 3% of the paid-in capital stock of the company
    3

    Notarize the company deeds

    Agency: Notary Public

    The public notary’s fee for notarizing company deeds is established in the Notary’s Fees Law. A licensed attorney usually drafts the bylaws but a licensed public notary notarizes the deed (the public deed is to be included in the notary’s protocol and registered at the public registries). Attorneys are not legally authorized to notarize or certify documents.
    3 days 0.75% or 2% of the paid-in capital stock of the company, depending on the capital
    4

    Buy the company commercial books

    Agency: Bookstore

    The cost to buy company commercial books is about USD 22 for hardcover books in any bookstore. The books must be submitted to the civil and commercial court to have all the pages sealed by the judge. On the first page, a seal indicates how many sealed pages the book contains and that it was registered in the Public Registry of Commerce, specifying the court order number, the date, and the name of the judge who rendered the order.

    The company must keep special commercial books at their registered office. The number of books and the accounting system to be used are left to the merchant’s discretion. At a minimum, however, a daily record of business transactions (daily record book) must be kept, and an accounting of current inventory must also be maintained in a separate book (inventory record book). Other books may be required for certain types of commercial activities according to law.

    Accounting books and documentation must be kept by a merchant for 5 years following the date that the last entry was made. All corresponding business receipts or vouchers must also be kept and maintained by the merchant during that 5-year time frame, to allow for auditing of the company’s books or records. A special request to use computer forms instead of books may be filed with the court and the tax authority. Corporate books are required to keep the records of the minutes of the board of directors and shareholders’ meetings, as well as the labor books pursuant to the Labor Code and regulations. Books must be authorized and sealed by each corresponding agency (corporate, tax, labor, social security).
    1 day 22 USD (Books) + USD 6.56 (Authorization of books)+ 0.21 USD (Employee registration with Ministry of Labor and Justice)
    5

    Submit registration documents at the single access window (SUAE)

    Agency: SUAE

    In December 2006 the Ministry of Industry and Commerce established a one-stop shop to register a company. Through this system, Sistema Unificado de Apertura de Empresas (SUAE), founders are required to comply with the following procedures to register a company with the Ministry:
    - Submit all documentation at a single window for revision and approval. Once approved, the documents are scanned, and the information is uploaded to a single application form (formulario único). SUAE assigns an identification number that allows the founder to monitor the registration process through the Web site.
    - The bylaws and other company formation documents are submitted to the Treasury Attorney Office (Abogacía del Tesoro) who reviews them and issues a registration and publication order
    - Apply for tax registration with a delegate of the Ministry of Finance (Ministerio de Hacienda).
    - Obtain the taxpayer’s registry number (Registro Único de Contribuyentes, RUC).
    - Send the documents to the Municipality of Asunción for fee verification and assessment. The municipality issues the relevant license and permits (Patente de Comercio, Resolución y Certificado de Licencia de Habilitación de Establecimiento) upon inspecting the site and approving the documentation.
    - Register with Social Security Institute (Instituto de Previsión Social) for registration (inscripción obrero/patronal).
    - Register with the Ministry of Justice and Labor (Ministerio de Justicia y Trabajo) to start hiring employees (inscripción patronal).
    - Register with the General Migration Office (Dirección General de Migraciones) to obtain temporary and permanent residency (residencia temporal y definitiva).

    The cost are as follows: GRN 35,078 (Public Registries of Commerce) + GRN 35,078 (Public Registries of Legal Entities and Associations) + GRN 5,000 (Application Form) + GRN 28,062 (Special Rate)
    25 days see procedure details
    * 6

    Publication of an extract of the bylaws in the Official Gazette and a newspaper

    Agency: Official Gazette

    The treasury attorney orders the publication of an extract of the bylaws in the Official Gazette and another newspaper of wide circulation in the market in which the company is located. The extract is published for 3 consecutive business days.
    4 days (simultaneous with previous procedure) USD 19 Official Gazette + USD 133 newspaper
    * 7

    Municipality conducts an onsite inspection

    Agency: Municipality

    Before conferring the license, municipal inspectors perform an onsite inspection of the company’s main office to verify compliance with municipal ordinances.
    2 days (simultaneous with procedure 5)
    no charge

    * Takes place simultaneously with previous procedure.