Set Up Business in Paraguay and Start Company Registration
Paraguay is a landlocked country, and you might not easily think of it as a good country to do business. Although, this powerhouse in South America is starting to become more popular among entrepreneurs who want to expand their brand presence in Paraguay. Based on the Paraguayan Constitution, foreign or local investors can go into the business sector anytime they want as long as it has legal activities. They do not need to get any special government permission because you only need to inform them, and then you can start operating right away. The country really makes it easy for foreign investors to set up a business in Paraguay there and gain the attention of government officials, even if you have a relatively small project.
Starting an LLC Company
Paraguay requires to have at least 2 shareholders and 1 director who should be a permanent or temporary resident. They did not put a minimum or maximum of the paid-up capital requirements you need to pay.
The corporate contract should record with the Public Registry prior to when the LLC starts operating. The companies do not feel compelled to undergo the registration process because the commercial entities may add an unlimited amount of responsibility of all business partners with the third parties.
The capital of the company is split into nominal quotas amounting to $1 and it is written on the contract of incorporation. The business owner can also incorporate their capital as fixed assets or goods.
Why You Must Open and Set Up a Business in Paraguay
Based on the research done in 2019, the economy of Paraguay is almost $30 billion, with a county that should perform in the next years. Paraguay’s economic growth is expected to be consistent, especially in the services and agricultural goods sector, and its level of export has increased. In 2018, the growth of Paraguay was at 4.2%. The GDP of Paraguay expected to hit 6.3% when the year 2020 comes, and the debt of the government will also fall.
The Environment is Business-friendly
Paraguay has an economic policy that is very open, which makes it easy for foreigners to begin their business activities right away. The government has made a lot of incentives when it comes to attracting foreign investors in, which includes tax breaks, capital and profit repatriation and giving equal rights for industries that are both local and foreign.
You will get the benefits of green energy. Almost the entire country is already using renewable hydropower, which means they get most of their electricity in Itaipu Dam. It is unable to reduce the reliance of the country on the importation of energy, but Paraguay can export electricity. Maybe, most importantly, businesses can get access to reliable energy sources that are cheap for their use, no matter which sector it is. Green energy is also able to lessen your business’ footprint, which is a selling point for consumers who are environmentally conscious.