How to form an EAS in Paraguay: requirements, process and what happens afterwards

1. First: what is an EAS?

An Empresa por Acciones Simplificadas is a legal entity created by Law No. 6480/2020. It can have one or more members, individuals or legal entities, and acquires its own legal personality when registered.

The law does not establish a general minimum capital for forming an EAS. The declared capital should nevertheless make sense in relation to the activity and to the contributions the shareholders actually undertake to make. A regulated activity may have its own requirements that need to be checked separately.

An EAS allows a relatively simple structure, but it is still a company. It has assets, documentation and obligations separate from those of its shareholders.

2. The person who starts the filing matters

Formation is completed online through the MIC EAS platform.

Access is made with the electronic identity of the principal legal representative. According to SUACE’s current frequently asked questions, that electronic identity is obtained with a Paraguayan identity card.

This is especially important where all shareholders are foreigners. Being a shareholder and being the person who can operate the filing system are not necessarily the same thing.

If a foreign shareholder does not have permanent residence, SUACE allows participation subject to the published documentary conditions, but requires a legal representative who can satisfy the requirements for operating the system. Where representation is granted through a power of attorney issued abroad, the power must comply with the applicable legalization or apostille and translation formalities.

3. What is worth deciding before opening the platform

A significant part of observations and corrections can be avoided if the basic decisions are made first.

Prepare at least:

• proposed company name;
• identity and documentation of all shareholders;
• legal representative;
• company domicile;
• activity the company will carry out;
• duration, if a period different from the applicable default is intended;
• capital and form of contribution;
• distribution of shares;
• governance and management bodies;
• company email address;
• powers of attorney or representation documents, where applicable;
• supporting documentation for contributed assets where capital is not paid only in cash.

It is not advisable to invent an excessively broad activity “just in case.” The declared activity should correspond to what the company genuinely intends to do and may affect other registrations, permits and obligations.

4. Documents: not every shareholder provides the same thing

Paraguayan individual

The basic documentation starts with a valid Paraguayan identity card.

Foreigner with a Paraguayan identity card

The official EAS requirements contemplate the Paraguayan identity card and the immigration documentation indicated by SUACE.

Foreigner without residence

The published documentary requirements allow a shareholder who does not participate in the governing or management body to provide an identity document or passport from the country of origin.

If a third party will act under a power of attorney, the representation documents must be prepared correctly. A power issued abroad may require an apostille or legalization and, if it is in another language, translation into Spanish by an authorized translator.

Legal entity as shareholder

Where the shareholder is another company, the documentary package becomes broader: constitutional documents of that legal entity, the corporate decision approving the participation, representation, and documents relating to the company itself and the persons acting on its behalf.

For a foreign legal entity, origin formalities, apostille or legalization and translation become particularly important.

The practical consequence is simple: if there are foreign shareholders or legal entities, prepare the documentary file before starting data entry.

5. Standard-form bylaws, private document or public deed

An EAS does not require a single form of incorporation document.

Standard-form bylaws

The system generates a standard model using the information entered. It should not be edited as though it were a free-form text file.

This is the simplest route where the standard rules work for the relationship between the shareholders.

Private document

Law 6480 allows a private incorporation document, with certified signatures, containing the information required by law.

It can be useful where the shareholders need clauses that the standard model does not address.

Public deed

An EAS may also be formed by public deed. Certain contributions of assets may also make the public form necessary.

The decision among these options should not be reduced to “which is faster.” If there are several shareholders, future investors or special management rules, the content may be more important than a few days’ difference in processing.

6. How the process works in practice

In practical terms:

1. The basic structure is defined and the documentation is gathered.
2. The legal representative accesses the system using an electronic identity.
3. The EAS data and information on its members are entered.
4. The relevant incorporation document is selected or uploaded.
5. Supporting documents required according to shareholders, representation and capital are attached.
6. The application is submitted.
7. The authorities carry out their checks.
8. If there are observations, they must be corrected.
9. Once registration is complete, the company has its incorporation and the documentation generated by the process.

Official notifications about the filing go to the company email declared in the application. SUACE expressly states that the official email should not be that of a third party such as an agent or accountant.

The business email should therefore exist and be under the client’s control before the application is filed.

7. How long does it take?

SUACE publishes the following times where the application has no observations:

• 72 business hours where the standard-form bylaws are used;
• 8 business days where a different incorporation document is used, such as a private document with certified signatures or a public deed.

These are administrative processing times, not a promise that every company will be fully ready to operate within that period.

Depending on the case, additional time may be needed for:

• preparation of powers of attorney;
• apostilles or legalizations;
• translations;
• certifications;
• obtaining documents;
• correcting observations;
• operational setup afterwards.

For a foreign shareholder, much of the time is saved before filing rather than after.

8. Foreign shareholders: what really changes

The question “Can a foreigner own an EAS?” is too simple.

According to SUACE’s current information, a foreigner may participate as a shareholder. What changes is the documentation and, in certain cases, the ability to hold management or representation functions without the corresponding Paraguayan documentation.

A foreign shareholder without residence may require a legal representative who satisfies the local requirements and a correctly executed power of attorney.

This allows three issues to be separated:

• ownership: who holds the shares;
• representation: who can act for the company;
• residence: the foreign shareholder’s personal immigration status.

Forming a company does not in itself amount to obtaining Paraguayan residence.

9. The EAS exists: now operations begin

This stage usually receives less attention than incorporation and is where many problems appear.

Review the RUC

Check the registered data and tax obligations. The legal form alone does not reveal all of a company’s obligations.

Prepare invoicing

Since 1 April 2025, DNIT has required legal entities newly registered as taxpayers in the RUC to issue tax documents through electronic systems, subject to the exceptions provided by the rules.

Do not leave invoicing until the day of the first sale.

Organize accounting

From the first month, define:

• where purchase invoices will be received;
• how bank movements will be delivered;
• who reports collections and payments;
• how shareholder contributions or loans will be documented;
• who answers the accountant’s questions;
• and which internal date will be used to close the month’s documentation.

Keep corporate information current

Law No. 6446/2019 created administrative registers of persons and legal structures and of beneficial owners. MEF currently manages these communications through SIARA.

Forming the company does not mean later changes in shareholders, control, representation or other relevant data can be ignored.

10. First-month checklist

Before treating the opening process as complete, check:

• incorporation documents filed and archived;
• RUC and tax data reviewed;
• official email under the company’s control;
• invoicing mechanism ready;
• bank account or financial workflow defined;
• shareholder contributions documented;
• internal person responsible for delivering documents identified;
• accounting and tax calendar agreed;
• corporate register and beneficial-owner position reviewed;
• employment obligations checked if there will be employees;
• sector-specific permits checked if the activity needs them.

11. What Sandra Ovelar can coordinate

The work can begin before the EAS is filed: reviewing the structure from an operational and accounting perspective, organizing documents, coordinating formation and leaving the ongoing tax and accounting routine prepared afterwards.

Where the case requires a public deed, specific legal decisions, complex powers of attorney or other work reserved to a particular profession, that work should be coordinated with a notary or lawyer as appropriate.