The Paraguay LLC (SRL)
- The incorporation of a limited liability company in Paraguay requires a minimum of two shareholders and one director who may be temporary or permanent residents of Paraguay. There is no upper or lower limit requirement for paid-up capital.
- The corporate contract must be submitted to the Public Registry before the LLC begins operation. The firms are not obliged to register as businesses, but inability to register may generate unlimited responsibilities towards third parties for all members.
- The share capital of the LLC is divided into nominal quotas of US$ 1 and shows on the contract of incorporation. The capital may be integrated in fixed assets and products.
Paraguay Public Limited Company (SA)
- The Paraguayan PLC must include the denomination “SA” (Sociedad Anonima). A minimum of 2 shareholders and 1 managing director are needed to register an SA in Paraguay. The director must be a local resident.
- Must have fully subscribed capital stock and an authorization recorded at the Public records from the courts. There are no minimum requirements for share capital.
The Paraguay branch office
- International corporations interested in doing normal business in Paraguay are allowed to incorporate a branch office. The branch office must follow the incorporation laws of the Paraguayan Civil Code.
- At least one director, who must be a resident of Paraguay, is required to complete the process of incorporation. Likewise, it must have a share capital of at least USD 25,000.
- In accordance with Paraguay’s corporate law, branches registered in Paraguay are permitted to be entirely owned by their holding company
Paraguay representative office
The Paraguay representative office may also be entirely owned by its holding company. It must have at least one local resident director in Paraguay. The paid-up capital for completion of the registration process shall be at least USD 25,000.