How to Open a Company in Paraguay as a Foreigner in 2026: EAS, Requirements, Taxes and Mistakes to Avoid

Quick answer: foreigners can own and participate in Paraguayan companies, including an EAS. For many international entrepreneurs, the EAS is currently one of the most flexible structures because it can have a single shareholder and separate legal personality. But it is not automatically the best choice. Before incorporating, you should decide whether you actually need a company, who will act as legal representative, how foreign shareholders will be documented, what activity the company will perform and what tax, accounting, banking and compliance obligations will exist afterwards.

Opening a company in Paraguay is often presented as a very simple process:

“Create an EAS online, get the RUC and start operating.”

The incorporation itself can be relatively streamlined.

The harder question is whether the structure still makes sense after the company has been created.

A Paraguayan company can involve:

• a separate legal person;
• its own RUC taxpayer registration;
• a declared economic activity;
• accounting;
• tax filings;
• beneficial-owner reporting;
• invoicing;
• corporate banking;
• ongoing company maintenance.

So the first question should not be:

“How much does it cost to open an EAS?”

It should be:

“Do I actually need a Paraguayan company, and which structure fits what I intend to do?”

Can a foreigner open and own a company in Paraguay?

Yes.

Paraguay’s EAS framework allows a company to be incorporated by one or more:

• individuals;
• legal entities.

The official EAS documentation expressly contemplates foreign shareholders, including certain foreign shareholders who do not hold Paraguayan permanent residence.

This means:

you do not need Paraguayan citizenship simply to own shares in a Paraguayan EAS.

However, ownership and legal representation are different issues.

A foreign shareholder can own the company while the legal-representation arrangements must still comply with Paraguayan requirements.

Before incorporating: do you actually need a Paraguayan company?

This is the most important question in the entire process.

You do not automatically need a company because you:

• obtained Paraguay residency;
• have a Paraguayan ID card;
• want a RUC;
• work online;
• have foreign clients;
• want to benefit from Paraguay’s tax environment.

For a solo consultant or freelancer, operating as an individual may be perfectly adequate.

A company tends to become more useful when there is a genuine need to:

• separate personal and business assets;
• bring in one or more partners;
• hire employees;
• sign contracts through a legal entity;
• build a business that can continue beyond the founder;
• raise capital;
• work with clients that require a company;
• create a genuine operating or investment vehicle.

At N30 Paraguay, we often see the company decision being made in the wrong order: an EAS is chosen first because it looks fast and inexpensive, and only afterwards does the founder try to fit the real activity into it. We prefer to define the activity, shareholders, risk, tax treatment and profit-extraction model before choosing the legal form.

Creating a company you do not need can turn a simple activity into:

• more tax filings;
• more accounting;
• more maintenance costs;
• more company-law obligations;
• more compliance risk.

What is an EAS in Paraguay?

EAS stands for Empresa por Acciones Simplificadas, a Simplified Shares Company created under Law No. 6480/2020.

An EAS can be formed by:

• one shareholder;
• multiple shareholders;
• individuals;
• legal entities.

It has its own legal personality.

That means:

the company and the shareholder are legally separate persons.

As a general principle, shareholder liability is limited to committed contributions, subject to exceptions such as fraud, abuse, personal guarantees and other circumstances where liability can arise under law.

Why international entrepreneurs often consider the EAS

• it can be single-shareholder;
• it has separate legal personality;
• its governance is relatively flexible;
• incorporation uses the EAS/SUACE platform;
• a statutory auditor is optional;
• it can be used for many lawful commercial activities.

But “simplified” does not mean “maintenance-free”.

EAS vs. SA vs. operating personally

There is no universally best structure.

The EAS can be a strong fit for SMEs, founder-led companies, agencies, partnerships and many foreign-owned projects.

An SA may be more appropriate where the investors need a more traditional corporate-governance framework.

And an individual structure may still be better where the activity is small, personal and low-risk.

Foreign shareholders and the legal representative

This is where international incorporations need more care.

Foreign shareholder with Paraguayan identification

A foreign shareholder with the required Paraguayan documentation can participate directly within the platform framework, subject to the role they will hold.

Foreign shareholder without Paraguayan residence

Official EAS documentation also contemplates foreign shareholders without Paraguayan residence.

For such shareholders, acceptable identification can include:

• foreign identity document;
• passport from the country of origin.

However, the EAS online incorporation process is accessed through the electronic identity of the principal legal representative.

The MIC states that this electronic identity requires a Paraguayan ID card.

The principal legal representative must therefore meet the Paraguayan identification requirement published by the EAS system.

Important: the MIC FAQ still contains some legacy references to the former Migration Law No. 978 when discussing management roles. Those references should not be copied as if they were the current 2026 immigration framework. What is clear in the current EAS platform is that the principal legal representative accesses the system through electronic identity, and that electronic identity requires a Paraguayan ID card.

Using a representative by power of attorney

Where the foreign shareholder cannot act directly in the required representative role, the incorporation can be structured through an appropriately appointed legal representative.

If the power is granted outside Paraguay, it generally needs:

• apostille or legalization;
• Spanish translation when issued in another language;
• sufficient powers for incorporation and representation.

This is why the legal-representation structure should be decided before the filing starts.

What documents may foreign shareholders need?

The documentation depends on:

• whether the shareholder is an individual or a company;
• whether they have Paraguayan documentation;
• whether they are part of the management body;
• whether a representative is being used;
• how the capital is contributed.

Foreign individual shareholder

Depending on the case, documentation can involve:

• Paraguayan ID;
• residence card;
• passport or foreign identity document;
• power of attorney where a representative acts.

Foreign corporate shareholder

The process can be more document-intensive.

It may require:

• constitutional documents of the foreign company;
• corporate resolution approving participation in the Paraguayan company;
• power of attorney;
• foreign tax identification;
• identification of the relevant officers or owners;
• apostille/legalization;
• Spanish translation where required.

For cross-border structures, this preparation can be more important than the incorporation form itself.

How much share capital does an EAS need?

The EAS incorporation document must define the company’s capital structure, including the relevant subscribed and paid-in capital information, shares and method of contribution.

Official EAS materials contemplate contributions through:

• cash;
• registered assets;
• non-registered assets;
• mixed contributions.

Non-cash or significant contributions can require additional supporting documentation.

For that reason, a founder should not choose a nominal capital figure purely because it appeared in a template.

The capital should make sense in relation to:

• business activity;
• expected scale;
• contracts;
• banking needs;
• business credibility;
• shareholder arrangements.

How is an EAS incorporated in Paraguay?

The EAS process is handled through the official EAS/SUACE system.

A simplified sequence is:

1. define shareholders, representative, activity, capital and governance;
2. prepare the foreign-shareholder documentation;
3. prepare the bylaws/incorporation terms;
4. submit the electronic application;
5. complete the required verifications;
6. obtain the company’s legal registration;
7. complete the company’s taxpayer registration;
8. complete employer/labour registrations where relevant;
9. set up accounting, invoicing and ongoing compliance.

The system is designed to integrate several business-opening steps.

Digital incorporation does not make the company “plug and play”. In foreign-owned structures, the harder work is often not the online form but the powers of attorney, foreign documents, representation, RUC setup, accounting and future banking profile.

But digital incorporation does not make these issues disappear:

• powers of attorney;
• apostilles;
• translations;
• legal representation;
• tax setup;
• beneficial ownership;
• ongoing accounting.

The company needs its own RUC

The company is a taxpayer separate from its shareholders.

Therefore:

• the EAS has its own RUC;
• the shareholder may or may not also need a personal RUC depending on their own obligations;
• the company’s RUC must be configured for the actual business activity.

The current DNIT registration framework is governed by updated RUC rules, including General Resolution No. 34/2025.

Read: RUC in Paraguay — What It Is, Who Needs It and What Obligations It Creates.

Beneficial ownership: the company is not an anonymous box

A Paraguayan company should not be viewed as a tool for concealing its real owner.

Companies and other legal structures operate within Paraguay’s corporate and beneficial-ownership registration framework.

This is especially relevant where a foreign-owned EAS will be used for:

• international transactions;
• banking;
• investment;
• holding shares;
• large commercial contracts.

International banking and compliance standards increasingly focus on:

• ultimate beneficial ownership;
• source of funds;
• business purpose;
• economic activity.

The direction of travel is toward greater transparency, not secrecy.

What taxes can a Paraguayan company pay?

An EAS does not receive a special “EAS tax rate” simply because of its legal form.

For the broader source and territoriality analysis, see our guide to the Paraguay tax system for foreigners once its final English permalink is confirmed in WordPress.

Taxation follows the activity and tax regime that apply to the company.

IRE — Business Income Tax

Paraguay’s Impuesto a la Renta Empresarial (IRE) applies to Paraguayan-source business profits under the relevant regime.

The current rate for the General and SIMPLE regimes is 10% of net taxable income.

VAT

Depending on the company’s activities and transactions, VAT can also apply.

A foreign client does not automatically make a Paraguayan company’s service VAT-free.

Other taxes and obligations

Depending on the activity, the company may also face:

• withholding obligations;
• non-resident income-tax implications;
• selective consumption tax;
• municipal obligations;
• other sector-specific requirements.

So the following sales pitch is incomplete:

“A Paraguay company pays 10% tax.”

The 10% IRE rate is only one layer of the analysis.

What happens when the owner takes profits out of the company?

International entrepreneurs often focus only on corporate tax.

But the second question is equally important:

“What happens when the company distributes profits to me?”

Paraguay applies the Impuesto a los Dividendos y Utilidades (IDU) to qualifying distributions.

The current rates published by the DNIT are:

• 8% when the recipient is resident in Paraguay;
• 15% when the recipient is non-resident.

The final tax position can also depend on:

• who receives the distribution;
• shareholder residence;
• the distribution mechanism;
• applicable tax treaties;
• the shareholder’s home-country tax rules.

For that reason, “10% company tax” should never be treated as the full tax cost of owning a Paraguayan company.

Incorporation is the beginning: accounting comes next

An operating company needs to keep its:

• RUC;
• tax filings;
• invoicing;
• accounting records;
• corporate documentation;
• shareholder and beneficial-owner information;
• employment registrations where staff are hired.

The expensive mistake is rarely “not knowing how to create an EAS”.

It is creating one and then:

• missing filings;
• mixing shareholder and company funds;
• issuing invoices incorrectly;
• failing to document distributions;
• failing to update ownership information;
• using the company for an activity that was never properly analysed.

Does an EAS guarantee a corporate bank account?

No.

A properly incorporated company can apply for corporate banking, but the bank performs a separate onboarding assessment.

This can include:

• KYC;
• ultimate beneficial ownership;
• source of funds;
• business activity;
• expected turnover;
• customer and supplier countries;
• internal risk policy.

The bank may request:

• company documents;
• RUC;
• shareholder identification;
• contracts;
• invoices;
• evidence of source of capital;
• proof of actual activity.

Company formation and bank-account approval are related but separate processes.

Does opening a company give you Paraguay residency?

Not automatically.

Owning shares in a Paraguayan company and holding immigration residency are separate legal matters.

Paraguay has specific immigration routes, including the 2026 Investor Pass for qualifying investment profiles.

But simply incorporating an EAS does not automatically create:

• permanent residence;
• tax residence;
• a Paraguayan ID card.

For someone who already holds temporary residence and later applies for permanent residence, shareholder or partner status is one of the economic profiles recognized for solvency purposes under the current Migration framework, provided the ownership is properly documented.

We will cover this in a dedicated permanent-residency solvency guide. For now, keep shareholder status and immigration eligibility as separate questions.

When can an EAS make sense for a foreign entrepreneur?

International agency with a team

Once the activity involves staff, contractors, recurring contracts and a business that extends beyond the founder’s personal work, a company can be more logical.

Business with several founders

A company makes it possible to define:

• ownership percentages;
• decision rights;
• management;
• profit distributions;
• future entry or exit of shareholders.

Founder who needs legal separation

Separate legal personality can help separate business assets and liabilities from the founder’s personal position, subject to the legal limits of limited liability.

Project expected to scale

A legal entity may make more sense where:

• employees will be hired;
• new shareholders may enter;
• financing may be required;
• significant contracts will be signed.

Investment or holding vehicle

A Paraguayan company can sometimes be useful as an investment or holding vehicle.

But this requires a separate analysis of:

• the asset being held;
• shareholder countries;
• dividend taxation;
• management and control;
• foreign anti-deferral/CFC rules where relevant.

When might a Paraguayan company not make sense?

Creating an EAS solely because Paraguay has competitive tax rates can be a poor decision.

It may not be worthwhile if:

• you are a low-risk solo freelancer;
• you have no partners;
• you have few clients;
• you do not need legal separation;
• the company will have no real economic purpose;
• all management continues from another country;
• the accounting and maintenance cost outweighs the benefit.

For a shareholder who remains tax resident outside Paraguay, the company must also be analysed under the rules of that country.

A Paraguay company does not erase the tax rules of the shareholder’s country

This point matters much more for an international English-speaking audience.

A Paraguayan EAS can be perfectly valid and compliant in Paraguay while still creating reporting or tax consequences in:

• the United States;
• the United Kingdom;
• Canada;
• Germany;
• France;
• Australia;
• another shareholder-residence country.

Potential issues can include:

• foreign-company reporting;
• controlled foreign company rules;
• place of effective management;
• permanent establishment;
• dividend taxation;
• foreign tax credits;
• beneficial-owner disclosures.

Special note for U.S. owners

A U.S. citizen or U.S. tax resident does not stop being subject to the U.S. federal tax and reporting framework merely because the company is incorporated in Paraguay.

Foreign-company classification, information returns and shareholder taxation should be reviewed separately with competent U.S. tax advice.

The same general principle applies elsewhere:

company incorporation jurisdiction and shareholder tax residence are two different layers.

10 common mistakes when opening a company in Paraguay as a foreigner

1. Incorporating before deciding whether you need a company

Operating as an individual can be sufficient for many activities.

2. Choosing an EAS simply because it is popular

It should be compared with other structures and with operating personally.

3. Confusing ownership with legal representation

A foreigner can own shares while the representative must still meet the applicable EAS requirements.

4. Preparing foreign powers of attorney incorrectly

Apostille/legalization and Spanish translation may be required.

5. Using a template capital figure with no commercial logic

Capital should be coherent with the business and shareholder arrangements.

6. Thinking 10% IRE is the only tax

VAT, IDU, withholding and other obligations may also apply.

7. Confusing the shareholder’s RUC with the company’s RUC

They belong to separate taxpayers.

8. Assuming incorporation guarantees banking

The bank conducts its own compliance review.

9. Assuming a company automatically gives immigration or tax residence

Both have separate rules.

10. Incorporating and ignoring maintenance

Accounting, tax filings and corporate updates continue after formation.

Frequently asked questions about opening a company in Paraguay as a foreigner

Can a foreigner own 100% of a Paraguayan EAS?

An EAS can be formed by a single individual or legal entity, and the official system expressly contemplates foreign shareholders. Representation and documentation must still comply with the applicable requirements.

Do I need to live in Paraguay to own shares?

Not necessarily. Official EAS documentation contemplates certain foreign shareholders without Paraguayan residence. Ownership and management/representation should be analysed separately.

What is an EAS?

An EAS is a Simplified Shares Company created under Law No. 6480/2020. It can have one or several shareholders and has separate legal personality.

Is there one universal minimum capital for every EAS?

The company must define its capital and contribution structure under the EAS rules. It is better to determine an economically coherent capital than to rely on a generic figure without analysing the activity and type of contribution.

Can the EAS be incorporated online?

The EAS process is handled through the electronic EAS/SUACE platform, although representation, foreign documents and certain validations can require additional formalities.

Does the legal representative need a Paraguayan ID?

The MIC states that the principal legal representative accesses the incorporation system through electronic identity, which requires a Paraguayan ID card. Foreign shareholders who cannot meet that requirement directly can structure representation through a properly appointed representative.

Does the company get its own RUC?

Yes. The company has its own taxpayer registration and tax obligations, separate from those of its shareholders.

How much corporate tax does an EAS pay?

The EAS does not have a special rate simply because it is an EAS. The General and SIMPLE IRE regimes currently apply a 10% rate to net taxable income, while VAT and other taxes may also apply depending on the activity.

What tax applies when profits are distributed?

The DNIT currently publishes an IDU rate of 8% for resident recipients and 15% for non-resident recipients, subject to the specific facts, treaty analysis where relevant and taxation in the shareholder’s country.

Does a Paraguayan company give me residency?

No. Immigration status is separate. Specific investment routes such as Investor Pass may provide direct permanent-residence options where the investment requirements are met.

Do I need an accountant?

An operating company needs accounting, tax filings, invoicing and ongoing corporate compliance. The exact scope depends on the business and tax regime.

EAS or SA?

The EAS is often more flexible for founder-led companies and SMEs. An SA may be more appropriate for certain larger, formal or investor-driven structures. The correct choice depends on the project.

The best company is not the one you can incorporate fastest — it is the one that still makes sense afterwards

Paraguay has made company formation significantly easier.

That is an advantage.

But it also makes one mistake easier:

creating the company before deciding what problem it is supposed to solve.

A properly designed structure should answer:

• who the shareholders are;
• who will manage and represent it;
• what business it will conduct;
• where the customers are;
• how it will invoice;
• which Paraguayan taxes apply;
• how owners will receive profits;
• what banking it needs;
• where the owners are personally tax resident.

At N30 Paraguay, we review those variables before incorporation.

If an EAS is the right structure, we coordinate the incorporation, RUC and operating setup.

If operating as an individual is more efficient, we say that too.

Official sources and last review

Last reviewed: August 2026.

• Law No. 6480/2020 — Simplified Shares Company (EAS).
• MIC / EAS — Official FAQs on incorporation, foreign shareholders and legal representatives.
• SUACE — EAS opening and registration process.
• DNIT — General Resolution No. 34/2025 on RUC registration.
• DNIT — Business Income Tax (IRE).
• DNIT — Dividend and Profit Tax (IDU).
• MIC — official comparison of EAS, SA and SRL: shareholders, public deed and minimum capital.

This article is for general information only and does not replace individual corporate, tax, immigration or legal advice. Foreign shareholders should also review the rules of their country of tax residence before using a Paraguayan company.