Quick answer: a foreigner can own a Paraguayan Empresa por Acciones Simplificadas (EAS), including as the sole shareholder. There is no general statutory minimum capital and no general requirement to invest USD 70,000 or create five jobs merely to form the company. An EAS has separate legal personality and assets, can be useful for contracts, hiring, reinvestment and adding partners, but it does not automatically produce “10% total tax”, guarantee banking, create personal tax residence or grant immigration residence. For a foreign shareholder without a Paraguayan ID card, the practical issue is usually appointing a legal representative who can operate the Paraguayan electronic and tax-registration process.
The EAS is one of Paraguay’s most attractive corporate forms for foreign founders.
It is also one of the most oversimplified.
Claims such as:
“Open an EAS, pay 10% and invoice the world from Paraguay.”
leave out the parts that determine whether the structure is actually useful.
An EAS is a corporate tool. It works best when there is a genuine business reason to create a legal person separate from the founder.
1. What is an EAS?
The Empresa por Acciones Simplificadas was created by Law No. 6480/2020.
It is a commercial capital company that can be formed by:
- one person; or
- several individuals or legal entities.
Once registered, it acquires separate legal personality.
The EAS can therefore contract, own assets, invoice, employ staff, incur tax obligations, hold business assets and apply for bank accounts in its own name.
2. Can a foreigner own an EAS?
Yes.
Law 6480 permits individuals and legal entities as members, and SUACE expressly confirms foreign ownership.
A foreigner can also be the sole shareholder of an EAS.
There is no general requirement to insert a Paraguayan nominee shareholder simply because the beneficial owner lives abroad.
A foreign legal entity can also participate, subject to the corporate documentation and translation requirements that apply.
Shareholder is not the same as legal representative
This distinction is central.
| Role | Meaning | Must it be the same person? |
|---|---|---|
| Shareholder | Owner of the shares | No |
| Beneficial owner | Natural person ultimately owning/controlling under the applicable rules | May coincide with shareholder |
| Legal representative | Person authorised to represent the company | Does not need to be a shareholder |
A foreign owner can therefore hold the company without personally satisfying every operational requirement imposed on the principal legal representative.
3. There is no general minimum capital for an EAS
SUACE expressly states that:
an EAS has no general minimum capital requirement.
That does not mean the declared capital should be commercially meaningless. It should be coherent with the intended activity, operating costs and assets.
The USD 70,000 and five-job myth
Those are not general incorporation requirements for a foreign-owned EAS.
SUACE specifically distinguishes company formation from investor/residency requirements.
So statements such as “foreigners need USD 70,000 to form an EAS” confuse corporate law with a separate immigration/investment framework.
How can capital be contributed?
Capital can be contributed in cash or in assets. In-kind contributions need appropriate valuation and transfer documentation. Large cash contributions can trigger additional evidence and integration requirements, so capital should be structured around the actual business rather than an arbitrary headline number.
4. The practical issue for foreign founders: the legal representative
EAS formation is processed through SUACE’s electronic system.
Current SUACE guidance states that the system is accessed through the electronic identity of the principal legal representative.
That electronic identity requires a Paraguayan Civil Identity Card.
In addition, current General Resolution DNIT No. 34/25 requires a foreign legal representative to provide a valid Paraguayan Civil Identity Card for corporate RUC registration.
What if all shareholders are foreign and none has a Paraguayan ID?
SUACE allows the shareholders to appoint a qualifying legal representative by power of attorney.
If the power is issued abroad, apostille/legalisation and Spanish translation requirements can apply.
This means ownership can remain entirely foreign even where day-to-day legal representation is delegated to another person.
A legal representative should not be viewed merely as somebody “lending an ID card”. The role carries real authority and responsibility.
5. The EAS has its own RUC
The company is a taxpayer separate from its shareholders and receives its own corporate RUC.
Current RG DNIT 34/25 requires, among other items:
- identity documentation of the legal representative;
- identity documents of individual shareholders;
- documentation for a foreign corporate shareholder;
- the articles/statute;
- DGPEJBF certification;
- processing through SUACE.
SUACE describes the incorporation route as electronic, although the legal representative can still have to complete tax-registration steps with DNIT under the current RUC procedure.
Does the foreign shareholder need a personal RUC?
Not merely because they own shares.
The company has its own RUC. A shareholder’s personal RUC becomes a separate question if that person personally carries on activity, earns other Paraguayan income or otherwise has individual tax obligations.
See our RUC & Accounting guidance.
6. Owning an EAS does not make you a Paraguay resident
Company ownership does not automatically grant:
- temporary residence;
- permanent residence;
- a Paraguayan ID card;
- personal tax residence;
- a Tax Residence Certificate.
Corporate ownership and personal immigration/tax residence are separate legal layers.
A shareholder can live abroad and own a Paraguayan EAS. Likewise, a foreigner can become a Paraguayan resident without forming an EAS.
See our guide to tax residency vs legal residency, ID and RUC.
7. The EAS separates patrimony, but it is not absolute immunity
Law 6480 provides that after registration the EAS answers for its obligations with its own assets.
As a general corporate rule, shareholders are liable to the company up to their committed contributions and are not personally liable for the company’s labour, tax or other obligations.
But this should not be marketed as absolute protection.
Specific liability can still arise from matters such as pre-incorporation acts, management misconduct, fraud, unpaid contributions, personal guarantees and other statutory cases.
8. Shares make ownership more flexible
The EAS capital is divided into shares. SUACE guidance describes several possible classes, including ordinary, privileged, preferred, subordinated, deferred and founder shares within the legal limits.
This can help structure:
- economic rights;
- voting rights;
- different founder interests;
- entry of investors;
- future transfer of the business.
9. How is an EAS formed?
The incorporation process is handled through the EAS/SUACE electronic platform.
The constitutive document covers matters such as:
- identity and address of members;
- company name;
- registered address;
- business purpose;
- duration;
- share capital and classes;
- capital integration;
- profit/loss allocation;
- administration;
- shareholder-meeting rules.
Is it entirely remote?
The corporate filing is digital, but “online” does not mean every later government step is necessarily remote.
Tax-registration procedures can still require action by the legal representative.
The key advantage for foreign owners is that the shareholders themselves do not all have to become Paraguayan residents simply to own the company.
10. Beneficial ownership: an EAS is not an anonymous company
Paraguay operates an Administrative Registry of Persons and Legal Structures and an Administrative Registry of Beneficial Owners under Law No. 6446/2019 and its regulations.
The DGPEJBF supervises corporate and beneficial-owner information.
In 2026, the Ministry of Economy and Finance again reminded obligated entities of the annual data-update process linked to the 30 June compliance calendar under the applicable rules.
Material changes can also trigger reporting obligations.
So an EAS should not be marketed as a structure where the real owner is hidden from Paraguayan authorities.
11. What taxes does an EAS pay?
An EAS does not receive a special tax just because of its legal form.
Depending on the activity and transactions, it can face:
- IRE on business income;
- VAT on taxable transactions;
- IDU on profit distributions;
- INR on certain payments to non-residents;
- municipal taxes;
- employment/social-security obligations;
- sector-specific taxes where relevant.
The general IRE rate is 10% of net taxable income.
That is not the same thing as a “10% total tax burden”.
See our pillar on Paraguay company taxes: IRE, VAT, IDU and INR.
12. Can an EAS use IRE SIMPLE?
Potentially, where the statutory conditions are satisfied.
The general prior-year revenue ceiling is G.2 billion.
But eligibility is not determined by revenue alone.
Law 6380 states that importers and exporters must use the General Regime.
So an EAS should not be sold on the assumption that SIMPLE will always be available.
RESIMPLE is a different regime designed for qualifying small sole proprietorships and is not the normal EAS regime.
13. Profit distributions can trigger IDU
After the company pays IRE, retained profit still belongs to the company until it is distributed.
Domestic IDU rates on distributions are:
- 8% for resident recipients;
- 15% for non-resident recipients.
An applicable tax treaty may limit the domestic result.
The company bank account is not the shareholder’s personal wallet
Law 6380 treats certain shareholder withdrawals and personal use of company funds/assets as profit distributions.
Corporate and personal cash flows therefore need to remain genuinely separate.
14. Foreign customers do not turn an EAS into a “0% company”
An EAS serving international customers remains a Paraguayan resident company.
IRE has its own source rules, and services performed from Paraguay can also be subject to VAT even where the customer is abroad.
See our guide to working from Paraguay for foreign clients.
At N30 Paraguay, we would avoid an EAS whose only thesis is “invoice Europe from Paraguay at 0%”.
15. An EAS cannot automatically perform every regulated activity
An EAS can generally carry on lawful commercial, industrial and service activities, but regulated sectors keep their licensing requirements.
SUACE identifies examples such as regulated finance/credit activities, higher education and other specially regulated sectors. Certain personal professions also remain subject to their professional rules.
A broad corporate purpose does not replace a professional licence or sector authorisation.
16. Forming an EAS does not guarantee a bank account
The company can apply for banking in its own name, but the bank performs its own KYC/AML review.
It can review shareholders, beneficial owners, legal representative, source of capital, activity, customers, suppliers, jurisdictions and expected volume.
Company registration therefore does not create an automatic right to bank-account approval.
17. When an EAS often makes sense for a foreigner
An EAS has a stronger business case where:
- you need a Paraguayan legal entity for contracts;
- there are one or more owners;
- you want corporate liability separation;
- you will hire staff;
- profits will be retained/reinvested;
- the business needs working capital;
- the company will own assets or IP;
- investors may enter later;
- shares may be sold or transferred;
- the operation should continue independently of the founder;
- there is real Paraguayan business activity;
- the EAS fits coherently into a broader international structure.
18. When you may not need an EAS
It may add little value where you are a solo professional, mainly sell your own time, have no staff or partners, face limited business risk, withdraw almost all income personally and have no meaningful corporate assets or reinvestment.
In that situation, first compare individual vs EAS for invoicing foreign clients.
19. Practical examples
Case 1: foreign consultant resident in Paraguay with no employees
The consultant invoices European customers and needs most profit personally. An EAS is not automatically better; IRP, VAT, IRE, IDU, deductions and administration should be compared.
Case 2: two foreign founders create an agency with a Paraguayan team
The EAS has a clear role: divided ownership, employees, contracts, company assets, reinvestment and continuity. If neither owner has a Paraguayan ID, legal representation needs to be structured correctly.
Case 3: foreign entrepreneur wants a personal holding company
The issue is not merely whether an EAS can be formed. Review the shareholder’s tax residence, dividend taxation, CFC rules, substance, management, treaties and place of effective management. Legally possible does not automatically mean internationally efficient.
Case 4: foreign company wants to manufacture/export from Paraguay
An EAS may work, but it should be compared with an SA, branch and any applicable regimes such as Maquila. The corporate form should follow the industrial project.
Considering an EAS as a foreign owner?
We review shareholders, residence, business activity, legal representation, tax, banking and profit extraction to determine whether an EAS genuinely fits or whether another structure is more coherent.
10 common mistakes
1. “I need a Paraguayan shareholder”
No. Foreign ownership is allowed.
2. “I need USD 70,000 and five employees”
Not as a general EAS incorporation requirement.
3. “A shareholder needs permanent residence”
Not merely to own shares.
4. “A shareholder always needs a personal RUC”
Not merely because of ownership.
5. “Every shareholder needs a Paraguayan ID”
No. The critical operational requirement concerns legal representation and participant documentation.
6. “The legal representative only lends an ID card”
No. It is a genuine legal role.
7. “EAS = 10% total tax”
No. VAT, IDU, INR and other obligations can apply.
8. “Foreign customers mean 0% tax”
No. Source and VAT rules do not depend solely on customer residence.
9. “An EAS is anonymous”
No. Paraguay has legal-structure and beneficial-owner registers.
10. “Any regulated profession can simply operate through an EAS”
No. Professional and sector licences remain relevant.
Frequently asked questions
Can a foreigner open an EAS in Paraguay?
Yes. Foreign individuals and legal entities can participate.
Can it be 100% foreign-owned?
Yes. An EAS can have one foreign sole shareholder.
Do I need a Paraguayan shareholder?
No.
Do I need Paraguayan residence to be a shareholder?
No, not merely because you own the shares.
Do I need a Paraguayan ID card?
Not necessarily as a passive shareholder. The principal legal representative must operate with electronic identity and a foreign legal representative currently needs a Paraguayan ID for RUC registration.
Can I appoint a legal representative?
Yes. SUACE permits foreign shareholders to appoint a qualifying representative under a properly executed power.
What is the minimum capital?
There is no general minimum capital. It should be coherent with the business.
Does an EAS require USD 70,000?
No. That is not a general EAS incorporation rule.
How many employees must it have?
There is no general minimum number of employees.
What taxes does it pay?
IRE, VAT, IDU, INR and other obligations can apply depending on the activity and transactions.
Can an EAS use SIMPLE?
Potentially, where the statutory conditions are met. Importers and exporters must use the General Regime.
Does an EAS grant permanent residence?
No. Corporate formation and immigration residence are separate procedures.
Can it open a Paraguay bank account?
It can apply, but approval depends on the bank’s KYC process.
Is an EAS better than an SA?
It depends on the project. An EAS is often flexible for SMEs and entrepreneurial businesses, while an SA may fit more complex governance, financing or ownership needs. The comparison should be made case by case.
An EAS can be simple to form without making the corporate decision simple
Its advantages are real: sole ownership, foreign ownership, no general minimum capital, separate legal personality, limited liability as a rule, flexible shares and a digitalised formation route.
But the right structure still depends on who controls it, who represents it, where the owners live, how profits are reinvested or distributed, what risk the company assumes, how banking works and what tax consequences arise outside Paraguay.
At N30 Paraguay, we use an EAS when it solves a genuine business need — not when it simply adds a company to an activity that would work better without one.
Design the operation before forming the EAS
If you want to create a Paraguay company as a foreigner, we review ownership, representation, tax, banking and international operations before the articles are fixed and the company is formed.
Official sources and last review
Last reviewed: August 2026.
- BACN — Law No. 6480/2020 creating the EAS.
- SUACE — official EAS FAQs.
- SUACE — official EAS, SA and SRL comparison.
- DNIT — General Resolution No. 34/25, current EAS RUC requirements.
- DNIT — Law No. 6380/2019.
- MEF / DGPEJBF — 2026 annual legal-structure and beneficial-owner registry update.
This article is general information. The correct structure depends on the activity, shareholders, representation, tax residence of the participants and countries involved. Regulated activities can require additional licences or approvals.
