Types of Business in Paraguay: EAS, SRL and SA — Which to Choose and How to Register

Paraguay has established itself as one of Latin America's most attractive destinations for company registration. With a territorial tax system — you only pay tax on Paraguayan-source income — an economy that has grown above 4% annually for the last decade, and a modern legal framework, the country offers unique conditions for entrepreneurs, foreign investors, and companies looking to operate within Mercosur.

For anyone deciding to set up or invest, the question is not whether to incorporate, but which entity type to choose. Paraguayan law recognizes three main business vehicles: the Empresa por Acciones Simplificada (EAS), the Sociedad de Responsabilidad Limitada (SRL), and the Sociedad Anónima (SA). Each has distinct advantages, requirements, and costs — and the right choice can mean the difference between a smooth operation and unnecessary red tape.

EAS — Empresa por Acciones Simplificada

The EAS is Paraguay's most modern corporate form. It was originally introduced as an SAS under Law 5895/2017 and later improved by Law 6480/2020, which renamed it the Empresa por Acciones Simplificada. It is, without question, the recommended option for most cases: solo entrepreneurs, foreign investors, professionals wanting to invoice, and growing SMEs.

Why choose the EAS?

• A single shareholder is enough. Unlike the SRL (which requires at least two), the EAS can be incorporated by one natural or legal person, domestic or foreign.
• No minimum capital requirement. Shareholders freely set the share capital in the bylaws. There is no legal floor, removing a key barrier to entry.
• Incorporation in 24–72 hours. Through the SUAE system (Unified Business Opening System), much of the process is digital and can be completed in one to three business days.
• Structural flexibility. Bylaws can establish different share classes (ordinary, preferred, with or without par value), facilitating investor onboarding and flexible profit/vote distribution.
• Limited liability. As with all capital companies, shareholders are liable only up to their contribution. Personal assets are protected.

Best for: startups, freelancers and consultants, foreign investors establishing a local base, tech companies, e-commerce, mid-scale import/export.

Estimated cost (2026): notary fees between Gs. 800,000 and Gs. 2,000,000 (approx. USD 100–260), plus SUAE administrative fees (around Gs. 130,000). Total varies by bylaw complexity.

SRL — Sociedad de Responsabilidad Limitada

The SRL is Paraguay's "classic" corporate structure, regulated by the Civil Code (Law 1183/85). For decades it was the default option for SMEs, retailers, and family businesses, and it remains highly recognized by banks, financial institutions, and commercial counterparties that prefer established corporate forms.

Key characteristics

• Requires 2 to 25 partners. Cannot be formed by a single person and cannot exceed that cap.
• Capital divided into "cuotas" (participation quotas, not shares). Quotas are of equal value and cannot be freely transferred without partner consent, unless the bylaws provide otherwise.
• Manager(s) with legal representation. Administration is more formalized than the EAS; major decisions require shareholder assembly or consultation.
• Greater banking credibility. Many local banks and credit lines are more familiar with the SRL, potentially facilitating account opening and financing from day one.

Best for: businesses between known partners (family, close associates), established retailers, companies needing traditional bank credit access from the start.

Estimated cost (2026): notary fees between Gs. 1,500,000 and Gs. 3,000,000 (approx. USD 190–390), plus registration fees. Process typically takes 1–2 weeks.

SA — Sociedad Anónima

The SA is the most complex corporate structure and the most robust for large-scale projects. Also regulated by the Civil Code (Law 1183/85), it is mandatory for certain regulated sectors (financial institutions, insurance companies) and appropriate for companies seeking external investment or listing on the Asunción Stock Exchange (BVA).

Key characteristics

• No shareholder cap. Can have few shareholders or thousands.
• Capital divided into shares which can be registered (nominativas) or, within SEPRELAD limits, bearer shares.
• Can be "open" or "closed." An open SA can list on the stock exchange and raise public capital; a closed SA operates with private shareholders.
• Requires a Board of Directors and Statutory Auditor. Law mandates a management body (directorio) and oversight body (sindicatura), increasing annual maintenance costs.
• Balance sheet publication required in certain cases (open SA) in the Official Gazette.

Best for: large investment projects, joint ventures with international investors, private equity funds, companies planning stock exchange listings, financial institutions and insurers.

Estimated cost (2026): notary fees between Gs. 3,000,000 and Gs. 8,000,000 (approx. USD 390–1,040) + Official Gazette publication + registration fees. Process typically takes 2–4 weeks.

Comparison table

Indicative data for 2026. Consult a legal advisor for your specific situation.

Which one should you choose?

• You're a foreigner wanting to operate quickly: EAS. The most agile option, no local partners required, incorporated in days. Perfect for those in the residency process or running a digital business.
• You have a partner and want a bank-recognized structure: SRL. The classic option for businesses between two or more people who know each other and want credit access from day one.
• Your project is large, seeks external investors, or needs corporate structure: SA. Higher cost and complexity, but the only path if you want to list on the stock exchange or attract fund capital.
• You're a freelancer or independent professional: Single-shareholder EAS. The simplest solution to issue invoices and operate as a legal entity.

How to incorporate in Paraguay: general steps

1. Define the entity type and corporate purpose. The corporate purpose (objeto social) describes what activities the company will carry out. A broad purpose is advisable to avoid limiting future operations.
2. Draft the bylaws with a notary. An authorized notary (escribano) drafts and formalizes the constituent act and company bylaws.
3. Register via SUAE. The Unified Business Opening System (suae.gov.py) centralizes registration with the Public Commercial Registry (DGRP) and the Ministry of Industry and Commerce (MIC).
4. Obtain the RUC from the SET. The Unified Taxpayer Registry number is the company's tax ID. It's obtained from the State Tax Secretariat (set.gov.py) and is required to issue invoices.
5. Open a corporate bank account. Major local banks (Banco Continental, Itaú Paraguay, Banco Atlas, Visión Banco, among others) offer business accounts with standard requirements.
6. IPS employer registration (if applicable). If hiring employees from day one, register with the Social Security Institute (IPS) for pension and healthcare contributions.

Need guidance on incorporating your company?

Choosing the right entity type and completing the process without errors can save months of work and unnecessary costs. At ViaParaguay, we have a network of verified lawyers, notaries, and accounting advisors specializing in company formation for foreign investors and local entrepreneurs.

Find your advisor in the ViaParaguay directory or contact us directly to connect you with the right professional for your case.