PARAGUAY
Paraguay Residency & Company Formation
Paraguay is a strong option for small businesses, digital founders, and international entrepreneurs looking for a practical base in South America with low operating costs, a territorial tax system, and straightforward setup pathways.
Why founders look at Paraguay
Paraguay is often used by founders who want a low-cost jurisdiction and a “Plan B” residency path, while keeping a practical structure for small business operations and future flexibility.
- Residency and business setup can be coordinated in a structured way
- Common entity options include SRL / EAS (depending on fit)
- Useful for entrepreneurs seeking a lower-cost operating base
- Strong “small business” appeal when paired with good tax planning
* Legal/tax outcomes depend on your facts and may change. Always confirm with local professionals before acting.
We help small businesses move past admin bottlenecks
We understand that taxes, bureaucracy, and banking can slow small business growth. Our packages are designed to help small businesses move forward with practical, professional support.
Choose the route that matches your goals
Some clients want residency first, others want a company first, and many combine both into one structured plan.
Paraguay Residency
A practical route for digital nomads, entrepreneurs, and “Plan B” clients seeking legal residency status, local ID access, and a long-term base in South America.
- Temporary residency route under current migration framework
- Structured support for document preparation and filing coordination
- Useful foundation for banking, contracts, and local registrations
Company Formation
A low-cost company setup pathway for founders who want a simple operating structure in Paraguay for local or regional business activities.
- Common forms such as SRL / EAS
- RUC registration and core incorporation steps
- Can be paired with residency for broader planning
Practical residency path for founders and “Plan B” clients
Paraguay’s migration authority describes temporary residence under Law 6984/22 as a residency authorization for foreigners entering with the intention to establish themselves and conduct lawful activity in the country.
Temporary Residency
The temporary residence card is valid for up to 2 years and may be renewable for an equal period, and it is a prior requirement before permanent residency.
“Residente Precario” Status
During processing of temporary residency, applicants can obtain precarious resident status, which the migration authority notes enables lawful stay and certain practical rights during the process.
Paraguayan ID Access
The migration authority notes access to a Paraguayan ID card (cédula) with validity aligned to the temporary residency period.
Filing Format
The migration authority states the residency process is personal and in-person, while process follow-up may also be handled personally or through a legal representative.
Requirements and procedures can change. We coordinate the process and confirm the current checklist with local professionals before filing.
How we help with the residency route
Eligibility & Planning Call
We review your goals (tax residency, “Plan B,” relocation, banking, company setup) and help determine if Paraguay is the right fit.
Document Checklist
We provide a clear list of required documents (passport, civil documents, police record, etc.) and formatting/apostille guidance.
Local Filing Coordination
We coordinate local support for filing logistics, translations/notarization needs, and process tracking.
Post-Approval Next Steps
We support practical follow-through such as ID, RUC/tax registration (if applicable), and planning for company formation or banking steps.
Low-cost company setup with practical tax planning considerations
Paraguay is commonly positioned as a low-cost jurisdiction for small businesses and founders, especially where a simple structure and operational efficiency matter more than complex institutional setups.
Territorial Tax Framework
Paraguay is commonly described as operating a territorial system, where Paraguayan-source income is taxed and foreign-source income may be treated differently depending on classification and rules.
Corporate Tax (IRE)
PwC’s Paraguay tax summary lists a 10% Business Income Tax (IRE) and also describes simplified regimes for certain qualifying taxpayers.
Foreign Investment Treatment
Paraguay’s investment framework is widely cited (including REDIEX and U.S. State Department summaries) as providing equal treatment principles for national and foreign investment under Law 117/91.
Small Business Practicality
Paraguay is often attractive where founders prioritize low overhead, simple maintenance, and a practical setup for local/regional activities.
Tax, legal, and compliance outcomes depend on your facts, source-of-income rules, entity form, and personal tax residency. Case-specific advice is essential.
A simple, supported incorporation process
Business Model Review
We review your activity, target markets, and whether Paraguay fits your operational and tax-planning goals.
Entity Planning (SRL / EAS / Other)
We help define the proposed structure, shareholder setup, and a practical roadmap for incorporation and registration.
KYC & Formation Documents
We collect owner/shareholder documents and coordinate formation paperwork, bylaws, and local filing steps.
RUC & Operational Setup
We support post-formation steps such as tax registration (RUC), accounting coordination, and bank account opening assistance.
What’s typically included
Final scope depends on your chosen route (residency, company formation, or combined package).
Residency package (example scope)
- Full residency processing coordination
- Paraguayan ID support (cédula process coordination)
- Tax residency certificate support (where applicable)
- 1-year rental contract + utility bill support (if included in package scope)
- Driver’s license / RUC registration support (as applicable)
- Accounting advisory + first-year filing support (scope-based)
- DHL courier of final documents (if included)
Company incorporation package (example scope)
- SRL or EAS incorporation (depending on fit)
- Corporate bylaws
- Registration with Public Registries
- RUC registration
- Compliance & document checklist support
- Bank account opening assistance
Exact inclusions vary by package and client profile. We confirm the final scope before onboarding.
Required documents
We typically start with core identity/KYC documents plus basic business information. Additional documents may be required depending on route and nationality.
Residency route (typical documents)
- Valid passport(or other accepted identity document, depending on nationality)
- Birth certificate(apostilled/legalized, as required)
- Civil status certificate(if applicable)
- Police/criminal record certificate(apostilled/legalized, as required)
- Proof of entry / immigration entry record
- Additional documents based on case profile and DNM requirements
Company formation route (typical documents)
- Passport copy for owner(s)/shareholder(s)/director(s)
- Proof of address(recent utility bill or bank statement)
- Proposed company name(s)
- Business activity / service description
- Shareholder and management structure
- Timeline and banking/compliance goals
Important note
Authorities and financial institutions may request additional documents depending on your nationality, business activity, source of funds, and the service provider used. We help organize this from day one.
Practical support for small businesses and global founders
We focus on clarity, responsiveness, and execution—so you can move forward without getting stuck in paperwork, delays, or fragmented communication.
Clear Onboarding
Simple intake, organized checklists, and a professional process designed to reduce friction and help you move fast.
Cross-Border Founder Focus
Built for international clients navigating residency, tax planning, company formation, and banking in parallel.
Execution-Oriented Support
We coordinate next steps, local providers, and documentation so the process stays organized and efficient.
Paraguay residency & company formation questions
Can I apply for Paraguay residency and also open a company?
Yes, many clients combine both. We usually map the sequence first (residency, RUC/tax registration, company setup, banking) so each step supports the next.
Is Paraguay residency processed remotely?
The migration authority indicates the residency procedure is personal and in-person, although follow-up can be handled personally or via a legal representative. We coordinate the local process and logistics.
Is Paraguay good for small business tax planning?
It can be attractive in the right circumstances, especially because of Paraguay’s territorial tax framework and low general corporate tax rate. However, results depend on your source of income, residency status, and home-country tax rules.
Does BMEX provide tax or legal advice?
We support and coordinate the setup process. Tax and legal conclusions should always be confirmed with qualified local and home-country advisors based on your specific facts.
Let’s plan your Paraguay residency or company setup
Tell us whether your priority is residency, company formation, or both. We’ll help you assess fit, define the scope, and build a clear action plan designed for small business growth.
