What are the Corporate Compliance Requirements for Legal Entities in Paraguay?
With one of the most stable economies of the last twenty years and increasingly dynamic in Latin America, Paraguay is among the best positioned countries in South America. It has the same currency since 1943, a low inflation level and a healthy exchange rate. Very well recognized regional and global financing entities have highlighted positive and consistent economic performance, growth and development indicators in all their reports of the last decade. An increasingly low country risk, low tax pressure, a level of indebtedness that is clearly reasonable, and with a very open regulated market with respect to its neighbours, an extremely young population, which gives it one of the most auspicious demographic bonds, a strategic geographical situation, with mighty rivers that make it one of the largest producers of clean energy on the planet, has made it a point of reference for foreign investments. Emerging and booming sectors provide a lot of opportunities for companies and investors, especially in the field of agribusiness, livestock, and real estate. In addition, Paraguay is a founding partner of MERCOSUR, which in turn has key trade agreements with the EU, giving the country’s companies a wide international reach to their businesses.
The current Civil Code, its modifications and some special laws describe the general mandatory legal compliance requirements for all companies. This includes the obligation of all resident companies to maintain regular and accurate records of the information. A local registered address is required for companies residing in Mexico, and all companies listed publicly must file financial reports with the Mexican Securities and National Banking Commission. Companies must distribute up to 10% of the annual income with their employees, according to local employment laws.
It is very important to make sure you understand all the obligations and rights when operating commercially in Paraguay. There are key corporate compliance regulations that you should be aware of so that your company stays in compliance with current regulations, such as taxes and accounting, social security and corporate and labour laws. Check our brief presentation below to understand the different responsibilities you have as a business owner or legal representative in this country. If you are not sure how and where to start, contact our team in Paraguay today to receive personalized and solvent assistance and advice.
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