If you are considering company formation in Paraguay, or entering the market some other way, you will want to find a lawyer capable of handling the process efficiently. Because an experienced and reliable corporate lawyer in Paraguay will have first-class knowledge of the local regulatory framework and its administrative foibles, meaning you can count on your market entry complying with all statutory norms while being completed in the shortest time possible.
Paraguay has experienced significant economic growth and a considerable reduction in poverty over the last decade and its financial system is described by the World Bank as being “solid.” Despite having suffered economically during the COVID-19 pandemic, the South American nation is expected to recover quickly and witness 4% growth in 2021.
While Paraguay is not as well-known in South America for its commercial opportunities as the likes of Brazil, Colombia, or Peru, the country offers a pro-business and investment-friendly environment. It is also home to various free trade zones (FTZs) located in the the Argentina-Brazil-Paraguay tri-border area, around the city of Ciudad del Este. Examples include Zona Franca Internacional and Zona Franca Global del Paraguay, both of which offer attractive tax benefits to foreign investors.
Paraguay is landlocked, and as such has no major seaport, so a large proportion of goods arrive by land. The country also has a number of important inland ports, with the largest being the industrial city of Villeta — around 35 km south of capital Asuncion. The country’s main export commodities include soybeans and related products, and beef, with Argentina, Brazil, India, and Russia the main destinations for goods.
Paraguay’s Minister of Finance Benigno López has stated that, as part of the country’s strategy to overcome the turmoil of the pandemic, it is seeking to attract new foreign investment, encouraged by low taxes and tax exemptions, and bolstered by a streamlined migration process offering rapid residency to investors.
If you are considering entering this untapped market, read on to learn how a reliable corporate lawyer in Paraguay can assist you in your efforts, or go ahead and contact us now.
What role does a lawyer play in your market entry?
A corporate lawyer in Paraguay will ensure your company’s legal compliance from the first day of operations and will provide professional advice on local tax, labor, and civil legislation to mitigate risks and protect your business against legal problems that may arise.
In addition, a good corporate lawyer in Paraguay will be able to effectively represent your organization before local regulatory entities and conduct legal processes and negotiations with clients or partners on your behalf. They will also be precise in executing time consuming but detail orientated tasks, such as examining legal documents and drafting contracts.
Your chosen corporate lawyer in Paraguay is also a good candidate to be the legal representative of your company, as local legislation dictates that they must be resident in the country.
Advantages of hiring a good corporate lawyer in Paraguay
Some of the main advantages of working with a high-quality corporate lawyer in Paraguay include:
Intellectual property protection: A good corporate lawyer will be able to effectively protect your corporate identity and maintain your business competitiveness and recognition in the Paraguayan market, whether they help protect your company’s intellectual property by patent, trademark, or logo.
Specialized advice: A corporate lawyer will have a vast knowledge of corporate legal requirements, including taxes and setup expenses that apply to your business, helping you make critical decisions, such as the best legal entity for your enterprise.
Bilingual assistance: As in many Latin American countries, the official language of Paraguay is Spanish, and therefore the use of English is largely limited to business circles. A corporate lawyer in Paraguay will likely speak a significantly higher level of English than average, facilitating communication between your company and partners.
Business connections: Residing in Paraguay and having an established network, a corporate lawyer knows the particularities of the country’s business ecosystem and will have the ability to develop and maintain relevant connections that might result in further business opportunities.
Finding a corporate lawyer: key considerations
When choosing the right corporate lawyer in Paraguay, take into account the following key considerations:
- Relevant experience: Make sure you find a corporate lawyer who has experience supporting companies in your industry. In this way, you will avoid extra costs and save time
- Academic background: It is strongly recommended to work with a corporate lawyer that has the proper education and is informed about recent changes in corporate law
- Communication abilities: Working with a lawyer that has strong communication skills is essential to maintain healthy business relationships in Paraguay
- Professional reputation: By examining the business records and past client reviews on a specific corporate lawyer, you will be able to make an educated decision in line with your commercial needs
Corporate lawyers and corporations
A corporation, known as ‘sociedad anónima (SA)‘, is the most common legal entity in Paraguay and is popular among foreign investors expanding into the country. Corporations in Paraguay must be supervised by one or more regular trustees and multiple alternate trustees.
A corporate lawyer in Paraguay is a suitable candidate to be a trustee of a corporation operating in the country, as a corporate lawyer meets the fundamental requirements, which establish that the trustees must reside in Paraguay and have sufficient preparation for the position.
Note that the liability of a trustee of a corporation in Paraguay is limited to local corporate laws and company regulations. In addition, the trustee’s responsibilities will come into effect when the General Assembly of the corporation so decides.
Biz Latin Hub can be your corporate lawyer in Paraguay
At Biz Latin Hub, our team of multilingual legal specialists has extensive experience providing foreign companies with high-quality market entry services to enter the Paraguayan market successfully. With a presence in 16 countries, we can be your single point of corporate support with our full portfolio of tax advisory, commercial representation, and back-office services to ensure the success of your commercial expansion in Paraguay, as well as elsewhere in Latin America and the Caribbean.
Learn more about our team and expert authors.