If you are doing business in the Paraguayan market or planning to launch there, outsourcing some of your back office services in Paraguay is an ideal way to eliminate some heavy administrative burdens and significant compliance concerns from your core workload, providing the opportunity to focus in-house efforts on more profit-related matters.
Back office services encompass a broad range of functions, which, depending on the type of company and nature of your business, can include the likes of legal and accounting assistance, recruitment, investigative work, and representation before local authorities.
Such support is particularly attractive to anyone entering a new market with an unfamiliar regulatory regime and potential language barrier, because as well as getting relief in those particular areas, you also tap into the local contacts and market knowledge of the provider.
SEE ALSO: How to Incorporate a Company in Paraguay
Choosing your provider for back office services in Paraguay will depend on the type of services you are looking to outsource. For the likes of corporate legal or accounting work, such as drawing up contracts or filing annual tax returns, a dedicated legal or accounting firm could help you.
Similarly, should you be more interested in assistance with hiring and payroll outsourcing in Paraguay, a professional employer organization (PEO) could be useful.
However, if you are looking to outsource a broader range of back office services in Paraguay, you may find that your needs are best met by contracting a professional services company that specializes in providing a more comprehensive package of support, so that all of your needs can be met under one services agreement.
Below, four back office services that are ideal for outsourcing in Paraguay are highlighted, after some insight is provided into the country as an investment destination.
If you already know that you would like to outsource some of your back office services in Paraguay, contact us today to find out more about how we can support you.
Paraguay offers strong prospects to investors
Paraguay is arguably one of the least recognized, yet most promising, investment destinations in Latin America.
Nicknamed “The Heart of South America,” owing to its geographic location, nestled between Argentina, Bolivia, and Brazil, this landlocked nation of more than 7 million people has been declared “one of the best countries to invest in Latin America” by Interamerican Development Bank President Mauricio Claver-Carone.
Among many good reasons to invest in Paraguay are the country’s young and competitive workforce, strong real estate returns, a recent history of economic and political stability, and a favorable immigration system for foreign investors.
The country has also been adopting an increasingly international approach over recent years, including implementing internationally-accepted transfer pricing norms. In late-2021, the country also completed negotiations with Chile to establish a free trade agreement (FTA) – the first bilateral FTA that Paraguay has ever signed.
Paraguay is also a founding member of the Southern Common Market (Mercosur) – a 30-year old economic integration and trade promotion initiative that also includes Argentina, Brazil, and Uruguay, and to which Bolivia is awaiting formal acceptance.
As a member of Mercosur, companies resident in Paraguay enjoy preferential access to those markets, as well as a range of others that have struck FTAs and other trade-based agreements with the South American bloc.
Below, four back office services in Paraguay ideal for outsourcing are highlighted.
4 back office services in Paraguay to outsource
1. Accounting & taxation:
Accounting and taxation is a notoriously heavy and specialist administrative burden, which when not undertaken properly can result in legal inconveniences, financial penalties, and reputational damage in the eyes of local authorities.
When you choose accounting and taxation as one of the back office services in Paraguay to outsource, you do so in the knowledge that your experienced provider will be aware of and able to avoid common pitfalls and hurdles.
As well as guaranteeing your compliance with local legislation, they will also be able to provide you with ongoing advice, and help you manage your tax burden in the most efficient way possible.
2. Legal services:
Another back office service ideal for outsourcing in Paraguay is legal support, with which your provider will be able to help you negotiate all of the particularities of the Paraguayan corporate legal system.
They will also be able to offer valuable advice to guide you in some key decisions, such as how to structure your entity and which local partners to work with, as well as providing ongoing support with the likes of immigration.
As with accounting and taxation, when you outsource legal services in Paraguay, you enjoy the benefits of guaranteed compliance and minimum disruptions, as you launch and run your business.
3. Recruitment & hiring:
Recruiting the best staff can be challenging in an unfamiliar market, so when considering back office services in Paraguay to outsource, recruitment and hiring can be a good choice.
Because by outsourcing your hiring, you tap into the providers established recruitment network and knowledge of the local market, including the best educational programs and past employers to be looking out for on candidate resumes.
If you seek recruitment support from a PEO in Paraguay, they will also be able to manage the administration of salaries with offer payroll outsourcing services, while they could also potentially employ staff on your behalf so that you can get to work sooner than it takes to complete the company formation process.
4. Company formation:
If you are considering outsourcing back office services in Paraguay as part of a market entry strategy, another good option for seeking support is with the company formation process.
While this is essentially a legal service, it is one that has to be arranged in advance, and will often be handled by dedicated specialists. By seeking support with company formation in Paraguay, again you enjoy the guarantee of compliance and the convenience of the process being completed in the shortest possible time.
That will be particularly useful if you are not proficient in Spanish – the most widely-spoken official language in the country, and the one that will be used in all official processes and documents.
Biz Latin Hub provides back office services in Paraguay
At Biz Latin Hub, we provide integrated packages of market entry and back office support throughout Latin America and the Caribbean, with offices in 17 key cities around the region, including the Paraguayan capital of Asuncion.
Our unrivaled regional presence means we are ideal partners to support multi-jurisdiction market entries and cross-border operations, including international tax planning.
Contact us today for a quote or free consultation.