Business in Paraguay

DOING BUSINESS IN PARAGUAY

STARTING A BUSINESS

STANDARDIZED COMPANY
Legal Form: Corporation
Minimum Capital Requirement: 0
City: Asuncion

Registration Requirements:

Procedure 1. Check the uniqueness of the proposed company name

Time to complete: 2 days

Cost to complete: USD 30

Procedure 2*. Draft the Company Deeds signed by an Attorney

Time to complete: 5 days (simultaneous with procedure 1)

Cost to complete: USD 600 (minimum or 2 to 3% of the paid-in capital stock of the company)

Comment: It is customary to resort to professional attorneys in drafting the company formation documents since they should be made in compliance of corporate laws and regulations. With regard to the registration, the presentation of filings and applications (i.e. by-laws to the Treasury Attorney Office, to the court, to the registries, etc.) need to be signed by an attorney (either as an agent or counsel of founders). The organization of companies by attorneys acting through Powers of Attorney is also a common practice. The estimate of the cost to complete this formality is 2 to 3% of the paid-in capital stock of the company or a minimum of $600. The attorney's fee for this particular task is established in the Attorney's Fees Law No. 1376/88, Art. 72 (1) .

Procedure 3. Notarize the Company's Deeds

Time to complete: 3 days

Cost to complete: 0.75%-2% of the paid-in capital stock of the Company , depending on the capital

Comment: The Notary's fee for this particular task is established in the Notary's Fees Law. Usually a licensed attorney drafts the by-laws while the notarization (public deed to be included in the Notary's protocol and registered at the public registries) is done by a licensed Public Notary. Attorneys are not legally authorized to notarize or certify documents.

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