Paraguay- Tag Archives - Business News and Updates

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Manage Your Business Risks with Due Diligence in Paraguay

by Legal Team Paraguay | Aug 10, 2020

Understand how to manage your business risks with due diligence in Paraguay. Managing your business risks with due diligence in Paraguay is vital to reduce risks, as it analyzes the operations of a company and verifies compliance with local legislation and authorities. Due diligence in Paraguay as in other Latin American countries, offers certainty about operational aspects of the company you’re managing, buying, or merging with. Undertaking due diligence activities will guarantee the good standing and reputation of your business. The importance of due diligence in Paraguay Due diligence offers certainty about operational aspects of the company you’re managing, buying, or merging with. Due to the financial scandals of the 1990s in Paraguay, and also the discredit suffered by large audit firms after the famous Enron case, many adjustments have been made to Paraguayan law. The Paraguayan government has strengthened its financial laws to avoid money laundering and prevent different types of transactional crimes. In this way, sanctions that were previously symbolic have become quite severe. Currently, no one can escape the fact that the management of business risks through due diligence in Paraguay is essential. The most important aspects to be reviewed during a process of due diligence in Paraguay include: Corporate: Stock ownership. Statutes, partner agreements, and records of the company in question.Contractual: Verification of compliance with current legislation.Financial: Review of loans granted with and/or without real guarantees.Insurance: Coverage of insurance...

July 2020 Regulatory Update: South and Central America

by Team Latin America | Aug 2, 2020

Our professionals report notable regulatory updates for July 2020. Biz Latin Hub’s team of legal and accounting specialists operating across all key markets in Latin America report the following notable regulatory updates for July 2020 in Bolivia, Brazil, Chile, Costa Rica, Guatemala, Mexico, Panama, Paraguay, and Uruguay. We support foreign companies in Latin America comply with all corporate regulatory compliance obligations to ensure their success in new markets. For more information on how we can support your regulatory and annual compliance needs, contact us today. Bolivia RegulationDetailsOfficial Statement N° 37/2020 On 14 July, the Ministry of Labor announced that daily labor activities in private and public entities can last for up to 6 hours. Companies must alternate staff between working in their designated office and home-office working arrangements. Brazil RegulationDetailsOrdinance 340Prohibition of entry of foreigners in Brazil from 1-30 July. Exceptions: 1. Immigrant with permanent residence; 2. Foreign professional on mission in the service of an international organization, as long as duly identified; 3. Passenger in international transit, as long as the passenger does not leave the international area of the airport and the country of destination admits his ticket; 4. Foreign employee accredited to the Brazilian Government; 5. Foreign national, spouse, son, daughter, father, mother or curator of a Brazilian; whose entry is specifically authorized by the Brazilian Government in view of the public interest or for humanitarian...

Why Outsource Corporate Secretarial Services in Paraguay?

by Legal Team Paraguay | Jul 31, 2020

Corporate secretarial services in Paraguay help clients to manage and alleviate risks of their business’ compliance. Paraguay is one of the most attractive countries for doing business in South America. The World Bank states that the country has a fast-growing economy with a continuous growth percentage of 4.5% over the last years. In the last two decades, Paraguay has experienced important changes in its economy, overcoming financial challenges in the 1990s and the beginning of the new millennium, and making fiscal and debt adjustments in the middle of the last decade. The country has been favored by positive external factors that added to macroeconomic stability, leading to years of notable growth in GDP and GDP per capita. We outline crucial competencies to look for in a provider of corporate secretarial services in Paraguay, and the importance of these services when expanding your business. Importance of corporate secretarial services in Paraguay The right corporate secretarial services provider supports a company’s risk management activities by enabling businesses to fulfill their corporate obligations. Setting up operations in a new country such as Paraguay is a challenge in regards to understanding and complying with new tax regulations, adapting to a new business culture and hiring the right staff. It can be time-consuming and complicated, especially when considering language and cultural barriers. For this reason, it is vital to work with a trusted local partner to ensure that your company meets all local and international requirements. Hiring a local provider...

Explaining Developments in Digital Tax in Latin America

by Team Latin America | Jul 28, 2020

Economies in Latin America are changing rapidly. One important regulatory development for many countries in the region is digital tax, because it captures services delivered online or electronically. The OECD claims that Latin American economies are making real progress to address the tax challenges arising from the digitization of the economy. This international entity also expects that further digital tax developments in Latin America provides stability and certainty in the international tax system. Managing your company while keeping a careful watch over new regulations is one of the challenges to overcome while doing business in Latin America. We provide an explanation of digital tax developments in several emerging and developing economies in Latin America, so your business understands its obligations when offering digital services in these markets. Digital tax developments in Argentina Latin American countries are adapting to a new digital age with the establishment of digital services taxes across the region. The Argentine government levied taxes for digital services under law 27,430 and on a general basis. This regulation includes services carried out through the Internet network or any adaptation or applications, platforms or technology used by the Internet or other networks through which equivalent services are provided. By their nature, these services are basically automated and require minimal human intervention, regardless of the device used for its download, display or use. The regulation of digital services in Argentina has been in place since 27...

How to Liquidate a Company in Paraguay

by Legal Team Paraguay | Jul 18, 2020

Find out how to liquidate your company in Paraguay and exit the market in uncertain and difficult times. A liquidation is often a valid option for businesses whose owners do not want to continue accumulating expenses. Lately, Paraguay has been working on recovering its economic growth and cutting superficial government spending to improve its quality and move toward more efficient administration. Though there are many options and favourable conditions to do business in Paraguay, projects may don't go as planned and business owners may decide to liquidate their company as a final decision. Dissolving, liquidating and extinguishing your business is a complex process. Seeking legal and accounting support from local experts ensures your company avoids costly mistakes and complies with all corporate obligations. Reasons for company liquidation Liquidation arises from different circumstances indicated in the company’s bylaws and in the Paraguayan Civil Code, its laws, regulatory presidential decrees and ministerial resolutions. Different articles of the Paraguayan Civil Code highlights the following key reasons to liquidate a company in Paraguay: Avoid costly mistakes when liquidating a company by seeking professional advice. Art.1003. The company is extinguished due to the expiration of the term, or due to the fulfillment of the condition to which its existence was subordinated; in both cases, even if the business that was intended is not concluded;for the realization of the social purpose;due to the physical or legal impossibility of achieving a said end, either due to the...

Latest Developments in MERCOSUR Trade Deals and Negotiations

by Team Latin America | Jun 30, 2020

The Southern Common Market (MERCOSUR) brings new trade deals and negotiations to its participating countries Argentina, Brazil, Paraguay, and Uruguay. Its goal is to generate business and investment opportunities. It has driven agreements with other countries, and the so-called Associated States, which lead to meetings and activities between those South American countries. on top of that, MERCOSUR has also brought commercial and political partnerships with countries all over the world. We point out the trade deals and negotiations that MERCOSUR member countries have set and how buinesses in MERCOSUR member countries can benefit from them. Formal trade agreements between MERCOSUR countries Argentina-Paraguay deal supports automotive sectors In October 2019, the governments of Paraguay and Argentina signed a bilateral free trade agreement for the automotive sector, which provides for the tariff reduction for all cars that Argentina exports to Paraguay. Trade brings in new automotive products produced in the territory of both countries benefit from a 100% preference, with the exception of passenger cars and cars designed for the transport of people, to which a reduction schedule will be applied annually and automatically as follows: The Ministries of Finance for Argentina and Paraguay signed a Memorandum of Understanding on bilateral cooperation in fiscal, economic, and integration policies to favor the creation of joint work mechanisms. 2019: 25% 2020: 50%2021: 75% 2022: 100%. The total market for new cars sold per year in Paraguay is 40,000 units....

How to Open a Corporate Bank Account in Paraguay

by Legal Team Paraguay | Jun 20, 2020

Opening a corporate bank account in Paraguay is vital when incorporating a company in one of the most attractive economies for doing business in Latin America. Paraguay has a fast-growing economy with a continuous growth percentage of 4.5% reported in the last decades. The country has experienced important changes in regard to fiscal and debt adjustments that have favored its economy and led to years of prosperity and a strong GDP. Find out about how to open a corporate bank account in Paraguay while expanding your company in the region. Why open a corporate bank account in Paraguay Those who open a corporate bank account in Paraguay will benefit from certain advantages offered by Mercosur. Although Paraguay is of the most stable economies in the region, opening a corporate bank account in the country is the best way to prevent the devaluation of your economic resources in a foreign currency. Likewise, it is the fastest and safest way of managing your business financial records before the local authorities. Furthermore, those who open a corporate bank account in Paraguay will benefit from the advantages offered by Mercosur for Micro, Small and Medium Enterprises (MSME), or foreign entrepreneurs that decide to invest in the region. Lastly, banks in Paraguay are recognized for the efficiency and reliability of their services. Requirements to open a corporate bank account in Paraguay Each financial entity has the autonomy to establish its own customer admission policies. However, there are some standard requirements that both natural and legal persons...