Paraguay- Tag Archives - Business News and Updates

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Hire Staff Through an Employer of Record in Paraguay

by Legal Team Paraguay | Jun 1, 2020

When expanding into Latin America, consider hiring staff through an Employer of Record in Paraguay. In the age of information, the focus of the global economy has shifted from industry-oriented to service-oriented. The emerging markets of Latin America are no exception to this transition process and Paraguay is undoubtedly one of these emerging economies, with the highest growth rate in the last decade. Paraguay’s government is working to open up the market with new incentives to do business. Companies should consider engaging with an Employer of Record in Paraguay to hire staff from abroad. Employer of Record in Paraguay: hire staff without a local company Work with a local EOR in Paraguay to outsource some or all of your human resources needs, so you can fully concentrate on your core business. Entering a new market brings many opportunities, but also has risks. As a foreign business owner, you have various opportunities to enter a new market. You can decide to incorporate a legal entity in a foreign country, or hire staff in Paraguay without a local company. The latter requires employers to engage with an Employer of Record (EOR) in Paraguay You can work with a local EOR in Paraguay to outsource some or all of your human resources needs, meaning that you can fully concentrate on your core business. A qualified workforce and efficient human resources management are indispensable to guaranteeing strong business development. What is an Employer of Record in Paraguay? An Employer of Record in Paraguay offers a partnership of co-employment between a foreign entity...

New Legal Entity in Paraguay: Simplified Shares Company (EAS)

by Legal Team Paraguay | May 30, 2020

Find out about the new legal entity in Paraguay - the EAS, or Simplified Shares Company - and what this entity can offer business owners entering the market. The EAS in Paraguay was established through Law No. 6480/2020 and is an excellent tool for business development in Paraguay. Paraguay is one of the most underrated jurisdictions in Latin America for doing business. The country has demonstrated astonishing annual rates of economic growth, averaging around 4% between 2015-2017 and increasingly diversifying market opportunities, including blossoming agricultural, service and mining sectors. Although it is enticing, it can be difficult to do business in a country where one does not fully understand local law and regulations. With the purpose of encouraging entrepreneurs to enter the market, and reduce bureaucracy, the Paraguayan government has encouraged simplification in the creation of legal entities. Recently, Paraguay introduced the Empresa por Acciones Simplificadas (EAS), otherwise known as a Simplified Shares Company entity for business. While the law establishig this entity has yet to fully enter into force, this move to open the business environment in Paraguay is promising for foreign executives looking to expand into the country. 6 key characteristics of the Simplified Shares Company (EAS) in Paraguay The Empresas por Acciones Simplificadas (EAS) in Paraguay was established through Law No. 6480/2020 and is an excellent tool for business development in Paraguay. As a Simplified Shares Company, the entity’s main characteristics and innovations to benefit...

May 2020 Regulatory Update: Bolivia, Colombia, Costa Rica, Panama, Paraguay

by Team Latin America | May 28, 2020

Our senior legal and accounting experts deliver monthly updates on regulatory and other changes in their respective countries in Latin America. Find out regulatory changes occurring across Latin America that may impact you and your business. Extension for Registry of Commerce renewal in Bolivia Bolivia's response to the COVID-19 includes an extension of the deadline for commercial renewal with the Registry of Commerce. In Bolivia, the government’s response to the COVID-19 pandemic has included an extension of the typical deadlines for companies to provide certain documents to government agencies out to 29 May. These documents include: Annual Financial Statements,the company’s Annual Report 2019, andIncome Tax Declaration. As such, the deadline for commercial renewal with the Registry of Commerce (Registro de Comercio) will be rescheduled. The official due date is pending confirmation from government officials. Colombia reduces contributions from employees and employers In Colombia, Decree 558 of 2020 reduced the required pension contributions from employers and employees in order to increase business cash flow and disposable income for individuals. This is part of Colombia’s overall initiative to prevent mass job loss. These pension contributions are reduced from 16% to 3% - 2.5% from employers and 0.5% from employees). Other Decrees and Circulars announced by Colombia during their COVID-19 Pandemic response include: Circular 021: outlines options for flexible working arrangements, and options to take vacations in advance to avoid further layoffs.Circular 022: confirms...

Incentives for Business Between Paraguay and Argentina

by International Trade Experts | May 21, 2020

Like many other Latin American countries, business between Paraguay and Argentina is built upon a foundation of trade agreements and treaties to strengthen economies and regional integration, and provide new investment opportunities to those interested in entering these markets. Paraguay and Argentina have a historically fruitful bilateral relationship with a common goal: bilateral cooperation and the exchange of products and human resources. Paraguay with an emerging economy and a stable political environment has been becoming an attractive economy for investors. Argentina, considered as one of the most important economies in Latin America, constitutes an attractive focus to invest for both local and foreign companies. We outline a general summary of some of the most important trade agreements and agreements between Paraguay and Argentina in order to highlight the commercial opportunities offered by the two countries in the region. Agreements promoting business between Paraguay and Argentina The Yacyreta treaty responded to the world oil crisis by encouraging Paraguay and Argentina to seek a solution for energy supply. Yacyreta Treaty The Yacyreta treaty, signed in 1973, responded to the world oil crisis by encouraging Paraguay and Argentina to seek a mutually beneficial solution for energy supply. The objective of the treaty is to manage “The hydroelectric use of the Paraná River, the improvement of navigable conditions and the mitigation of the environmental effects generated by the Project”. As a result of this agreement, the Yacyreta Bilateral Entity was created....

How to Import Goods from Paraguay to Argentina

by International Trade Experts | May 9, 2020

Paraguay is an attractive destination for multinationals and foreign executives. For those who already have a business in the country, exporting products to Argentina is a very attractive option to expand in the region. For years, many Argentines, as well as other business owners in the region, decided to create companies in Paraguay thanks to the combination of tax incentives, legal certainty and macroeconomic stability that the country offers. According to the Organization for Economic Cooperation and Development (OECD), Paraguay is the country with the least tax burden in South America (only 15% of GDP), making the country an attractive focus for those interested in importing from Paraguay to Argentina. Background: Imports and Exports of Paraguay Total exports of Paraguayan origin reached a value of US$12,386.1 million in 2019 according to the Foreign Trade report of the Central Bank of Paraguay (BCP) while all Paraguayan imports in 2019 reached US$12,250.9 million.According to the BCP Foreign Trade Bulletin, in 2019 Paraguay has exported in FOB value of US$1.688 million to Argentina. Paraguay has exported in FOB value of USD $ 1.688 million to Argentina. Among the main products that are most imported from Paraguay to Argentina are: Soybeans and corn (Represented with approximately 70%)FuelsElectric powerMineral oilsMachineryRed meatsLeather Despite having a series of trade agreements and having the option of using the Paraguay-Paraná Waterway, the majority of imports from Paraguay to Argentina are made by land and air, due to time and flexibility of processes....

Overview: Argentina, Uruguay and Paraguay Trade Relations

by International Trade Experts | Apr 10, 2020

Companies seeking to expand to Latin America should consider the commercial opportunities generated by trade agreements between Argentina, Uruguay and Paraguay. As Latin American countries promote regional relationships to support each other, growth and free trade agreements offer new opportunities for business owners seeking to access important benefits and new markets abroad. As one of the largest economies in Latin America, Argentina draws focus for foreign expanding companies. Expanding multinationals should pay attention to the close relationship Argentina maintains with neighboring countries, especially as these countries work to reduce bureaucratic barriers to doing business – such as the introduction of a new legal entity structure in Uruguay. We provide a comprehensive overview of the trade agreements between Argentina, Paraguay and Uruguay. We also share some of the opportunities available to executives considering entering these markets. Argentina-Uruguay-Paraguay trade relations and agreements The economic relations between Argentina, Uruguay and Paraguay are comprehensive. Several different trade agreements in force between these nations reflect the efforts of their governments to maintain and strengthen trade ties. Several different trade agreements in force between these nations reflect the efforts of their governments to maintain and strengthen trade ties. However, in addition to strengthening relations with neighboring countries, each country has worked to diversify its trade profile not only within the region, but outside it with important trade partners...

Meet Gustavo Servín, our Executive Corporate Accountant in Paraguay

by Accounting Team Paraguay | Mar 11, 2020

Gustavo has been a part of our team since the formal opening of our new office in Asunción, Paraguay in December 2019. Gustavo González works as Biz Latin Hub’s Executive Corporate Accountant in Paraguay. Gustavo is one of the newest members of Biz Latin Hub, having been a part of our team since the formal opening of our new office in Asunción, Paraguay in December 2019. As our Executive Corporate Accountant in Paraguay, Gustavo has been influential in supporting clients from a variety of countries and sectors achieve their business objectives in the country. Gustavo has made an extraordinary effort to provide comprehensive, tailored solutions to serve the commercial needs of his clients and with the highest level of professionalism and attention to detail. “I really enjoy when I find the solution to our customer’s needs,” Gustavo says. “Being able to deliver results and keep our clients happy is very important for me. For me, creating links between colleagues and clients that exceed the purely professional field is the most satisfactory part of my job.” Besides being a key addition to our Latin America leadership team, Gustavo enjoys the outdoors and sports, especially swimming and biking. In 2003, Gustavo graduated from Asunción National University in Paraguay. After working in a variety of positions as Accountancy, Auditing, Tax Advisory, and Management, he joined the Biz Latin Hub team in early December 2019, and has been supporting the company’s operations in the newly established office. Gustavo has experience in several areas, specializing in...