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±¹Á¦¹ý·ü¿¬±¸¿ø International Legal Research Institute - Korea.
Tel. [+82] (0)10-5295-0621, (0)2-557-3476
Website. www.ilri.co.kr
Email. info@ilri.co.kr


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Á¦ÈÞ·ÎÆß: Casilla de Correo N.285 Asuncion - Paraguay
Edificio JACARANDA 4to Piso - Benjamin Constant 835. Asuncion - Paraguay



Minimum capital for Foreign company incorporation:

There are no requirements regarding minimum capital.
Pursuant to Paraguay law the main forms of incorporation are: 

(i) Stock Company: two shareholders are required (one can have only 1 share) and one director. Pursuant to immigration law, directors and managers should have residence in Paraguay in order to perform their services and duties.

(ii) Limited Liability Company:  requires two quotaholders (capital is divided in quotas that are not represented by titles as in stock companies). Quotaholders are entitled to manage the company. They can appoint a manager.  Manager needs to be a Paraguayan resident.

(iii) Foreign branch in the form of the latter. 




Documents:

In general, the required documents shall be:
(i) Notarized by-laws, duly registered
(ii) Legal representative, with residence permit if foreign.
(iii) if it is a foreign branch, evidence of being duly organized in the country of origin and decision of the board for organizing a foreign branch.
(iv) Registration before the Ministry of Finance (RUC) as tax payer (v) Labor registrations
(vi) Commercial license of the respective Municipality.



Residence permit:

In order to exercise the administration of a company a residence permit is required.  There are several documents to be filed such as Passport, marriage/divorce certificate, health certificate, investment certification (evidence of having USD 5000 in a bank or a investment title such as a real state property) after which approval the residence permit is granted.  However, since this procedure may be relative long, pursuant to our law it is possible to exercise the administration of a company while the granting is pending with the proof of having filed the aforementioned documents.



Processing time.

(i) Certificate of Incorporation:  Approximately 40 to 60 days

(ii) Business registration:  After completion of procedures mentioned in section 2.  Approximately 60 days.

(iii) Residence permit:  Approximately 3 months



Other comments:
Paraguay also has specific legislation regarding distributorship agreement (Law 194/93), which is very protectionist towards the local company that is considered a "weak party". Said legislation establishes termination rights for the local distributor and the payment of an indemnification when the termination is not for a "just case" included in the law.


Should you need further comments please do not hesitate to contact us.

Cordially yours,
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