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
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 of corporate secretarial services in Paraguay can help executives overcome these challenges, allowing them to focus on building a business strategy to develop their company.
Furthermore, the right corporate secretarial services provider supports the company’s risk management activities by enabling businesses to comply with local regulations and fulfill corporate obligations.
Avoid penalties or sanctions from local institution and generate success for your business in Paraguay by seeking an experienced, trusted corporate secretarial services provider.
What are some available corporate secretarial services in Paraguay?
1. Bookkeeping services
Bookkeeping includes the recording, storing and retrieving of financial transactions for a business, nonprofit organization, and individual. It requires knowledge of debits and credits and a basic understanding of financial accounting, which includes the balance sheet and income statement.
Business owners must bear in mind that bookkeeping and accounting registries are mandatory for every legal entity registered in Paraguay. Even sole proprietor companies must ensure that they are keeping their accounting records according to Paraguayan standards.
Companies with local activities in Paraguay must be careful with the management of their accounting registries and financial statements, as they have obligations to file annual and/or monthly declarations before the SET (Sub Secretaría de Estado de Tributación).
2. Payroll support services
An important corporate secretarial service in Paraguay that business owners must consider – and that they can also outsource – is payroll processing.
Payroll processing involves calculating, presenting, and paying remunerations for employees, plus making contributions for social security purposes.
Companies that manage employees in Paraguay must file monthly declarations with the IPS (Instituto de Previsión Social). Non-compliance can result in fines imposed on the company, and will create challenges for its Legal Representatives.
Despite the fact that in Paraguay, the Personal Income Tax is the sole responsibility of each worker once they have reached the affected rank, it is the responsibility of the employer to inform the tax authority on an annual form of all wages paid to its employees. This is so that the latter, through cross-referencing data with the social security plan, can claim the taxes.
With a corporate secretarial services provider in Paraguay, foreign businesses avoid the risk of non-compliance due to unfamiliarity with local regulations and government expectations. Seek support for hiring and managing your employees, including payroll processing, through professional employer organizations and payroll providers.
3. Auditing or corporate health checks in Paraguay
An entity health check in Paraguay – like an audit – is the examination of the business financial reports, accounting records and legal transactions to determine if they comply with local legislations and understand the regulatory ‘health’ of the business by independent contractors. Regular corporate health checks protect the business from unnoticed issues that can result in sanctions or other problems with local authorities in Paraguay.
By outsourcing corporate secretarial services in Paraguay, such as the entity health check, business owners can obtain regular reassurance that their company is fully compliant with all local legislation. Local legal and accounting experts have the depth of knowledge and understanding to identify any discrepancies and give businesses confidence that their company is operating within the law. These checks assess the business’ current status with all relevant government institutions.
There is no doubt that the primary role of an entity health check is to ensure corporate compliance. However, health checks also have other benefits such as a demonstration of good governance and also risk mitigation in Paraguay.
Most common audits in Paraguay
Audit of annual accounts for financial statements
Be mindful that financial statements in Paraguay need to follow IFRS standards. The financial statement audit checks all transactions, procedures, and balances of a company. The goal of an audit of financial statements is to determine the accuracy of financial reports and that they reflect accurate information of your business assets and liabilities in compliance with regulations.
The fiscal audit focuses on a company’s tax obligations. This type of audit will review the annual/monthly declarations of the company and identify any mistakes that may have resulted in overpaying, or underpaying taxes. Fast identification of unnoticed issues is especially important to avoid critical and expensive situations with local authorities and maintain a clean reputation.
The fiscal audit is the most common for companies to outsource to corporate secretarial services providers. Carrying a CCT – Tax Compliance Certificate in Paraguay, issued by the SET is very important, because almost any process, both in the private and public spheres require tenure.
This type of audit examines if the business conducts its operations according with internal and external standards. This audit is important to determine if your business complies with all general regulations, plus any additional industry-specific obligations and standards.
Expert corporate secretarial services providers in Paraguay will assist you with your auditing needs and de-escalate any issues that may cause problems for your business.
4. International taxation
While expanding your company in Paraguay and the wider region, a commercial strategy will be important to ensure the growth of the business through proper planning. Part of this is understanding international tax regulations and planning for International taxation entails the structuring, planning, and submission of documents for compliance with the respective jurisdictions. This means that understanding more than one country’s tax regulations is of the utmost importance.
The provider of corporate secretarial services in Paraguay can also assist you in building a strategy considering double taxation and free trade agreements. This will reduce cost for your company allowing a faster growth.
Engage with trusted providers of corporate secretarial services in Paraguay
Expanding to Paraguay can be a complex process, but thankfully the country is well known for its wealth in legal and financial expertise. Make sure to satisfy your taxation, HR and legal needs with a trusted, responsive, and efficient corporate secretarial services provider in Paraguay.
At Biz Latin Hub, we help businesses from all over the world to enter and operate in Paraguay and Latin America. Our team of local and expatriate lawyers and accountants has vast experience in tax compliance, company incorporation, auditing, and visa services.
Contact us today for a consultation.
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