HUBPY Global Hub Paraguay
Assess my project
Friendship Bridge (Ponte da Amizade) connecting Foz do Iguaçu, Brazil, and Ciudad del Este, Paraguay

Consulting · Intermediation · Industrial outsourcing

Your gateway to operating in Paraguay.

HUBPY helps international companies turn an opportunity in Paraguay into a structured operation — with project assessment, local coordination and decisions made in the right order.

Assess my projectSee the process

We are not a law or accounting firm. HUBPY coordinates the project and works with licensed professionals. Tax treatment, incentives and timelines depend on each activity and structure.

Decide before filing — understand the operating model before creating an entity.

Local coordination — execution in Paraguay with international communication.

Project-specific advice — no generic tax promises or one-size-fits-all solutions.

Three executives reviewing documents and site plans at a meeting table in an office overlooking the city and the river

For international companies

Set up and operate your business in Paraguay.

Setting up in Paraguay means creating a Paraguayan legal entity — usually an S.A., S.R.L. or EAS — that hires, invoices and pays taxes locally. Foreign investors can generally own 100% of a Paraguayan company, subject to the chosen legal form and any sector-specific requirements, and non-residents can act through a power of attorney while the operation is being built.

For trading, service and distribution businesses, the attraction is a simple tax system with a 10% business income tax (IRE), lower fixed costs and a base inside MERCOSUR to serve Brazil, Argentina and the rest of the region.

  • 10% IRE on net income and a general VAT rate of 10%
  • 100% foreign ownership, generally permitted subject to the legal form and sector-specific requirements
  • Freedom to remit profits abroad, subject to applicable taxes and regulatory requirements
  • Lower costs for rent, energy and payroll than in most of the region
  • Preferential access to MERCOSUR markets when origin rules are met

How HUBPY helps

From the first feasibility study to an active company: legal form, registrations, banking, workforce and local representation coordinated in one implementation plan.

Full guide: opening a company in Paraguay →Discuss your setup →
Workers in hard hats operating stainless-steel process tanks and valves on a modern industrial production floor, with IBC containers and blue drums

For industrial projects

Produce in Paraguay through maquila or local partners.

Producing in Paraguay usually follows one of two paths. Under the maquila regime (Law No. 7,547/2025), a Paraguayan company processes or manufactures goods for a contracting company abroad. The Maquila Regime applies a 1% Single Maquila Tax according to the statutory taxable base and the conditions of the approved program. Alternatively, production can start with an already-approved local contract manufacturer, before investing in your own plant.

This model has become a relevant alternative for Brazilian industries in sectors such as textiles, auto parts, plastics and electrical components.

  • 1% Single Maquila Tax, according to the statutory taxable base and the conditions of the approved program
  • Inputs and machinery enter under temporary admission, without import duties
  • Freedom to choose the plant location by logistics, labour or energy
  • Phased start through sub-maquila or contract manufacturing

How HUBPY helps

We assess maquila eligibility and identify facilities, suppliers and contract manufacturers for a phased, export-oriented launch.

Discuss your production →

What we structure

From initial study to active operations.

A business launch involves legal, tax, banking, labor, customs and operational decisions. HUBPY coordinates these workstreams in one plan.

01

Implementation assessment

Review of business, markets, revenue flows, suppliers, workforce and goals to identify viable paths.

  • Business, market and revenue-flow mapping
  • Feasibility of each structure (own company, maquila, outsourcing)
  • Risks, dependencies and a phased budget
02

Company formation

Coordination of incorporation and registrations, aligned with the legal form and actual operating model.

  • Choice of legal form: S.A., S.R.L., EAS or branch
  • Articles, public registry, RUC and beneficial-owner registry
  • Bank account, municipal licence, labour and IPS registrations
03

Maquila and special regimes

Eligibility assessment and program coordination when activity, export destination and substance support it.

  • Eligibility under Law No. 7,547/2025 and program design
  • Filing and follow-up with CNIME through the VUE
  • Sub-maquila and contract-manufacturing models
04

Industrial outsourcing

Identification of production capacity, facilities, suppliers, contractors and local partners.

  • Search for plants, warehouses and industrial parks
  • Selection of contract manufacturers and suppliers
  • Pilot runs before committing to owned assets
05

Local representation

Communication with entities, partners and providers, plus coordination of the steps required to operate.

  • Local point of contact for authorities and partners
  • Communication in English, Portuguese and Spanish
  • Follow-up of deadlines and recurring obligations
06

Foreign trade and logistics

Coordination with licensed specialists across import, export, customs and logistics.

  • Import/export flow design with licensed customs brokers
  • Rules of origin and MERCOSUR documentation
  • Freight and logistics coordination Brazil ↔ Paraguay

A simple tax structure

Since the 2019 reform (Law 6380), companies pay IRE at 10% on net income, VAT has a general rate of 10%, and dividends are taxed separately through IDU. Fewer taxes and fewer forms mean lower compliance cost — but each obligation still has to be filed correctly.

Energy and operating costs

Paraguay generates far more electricity than it consumes, mainly from the Itaipu and Yacyretá hydro plants. Industrial power, land and labour costs are competitive in the region, which matters for energy-intensive and labour-intensive production.

Location inside MERCOSUR

Borders with Brazil, Argentina and Bolivia, and river access to the Atlantic via the Paraná–Paraguay waterway. Goods that meet MERCOSUR origin rules can reach Brazil with preferential tariff treatment.

Rules that welcome foreign capital

Law 117/91 gives foreign and domestic investors equal treatment, and profits can be remitted abroad, subject to applicable taxes and regulatory requirements. Foreign investors can generally own 100% of a Paraguayan company, subject to the chosen legal form and any sector-specific requirements.

There is no single route

Three common structures.

Own company and operation

For businesses planning a local presence: hire, invoice and operate through their own structure.

Best for: continuity and operational control.

Maquila program

For qualifying industrial or service projects aimed at export and approved under the program.

Best for: export production under a specific regime.

Outsourced, phased launch

Validate a market or start through local capacity and partners before expanding owned assets.

Best for: speed, learning and lower initial investment.

How it works

A clear process before commitments are made.

  1. Discovery

    Offer, current structure, markets, volumes, people and strategic goal.

  2. Assessment

    Structural options, critical issues, missing information and specialists.

  3. Implementation plan

    Stages, responsibilities, dependencies, documents and assumptions.

  4. Local coordination

    Execution with licensed professionals, public bodies and partners.

  5. Operations

    Support for compliance and the next phase of the project.

Important questions

Before you decide.

General information does not replace a project review or advice from licensed legal, accounting, tax and customs professionals.

Can a foreigner establish a company in Paraguay?

Yes, subject to the chosen legal structure and the applicable identification, representation and compliance requirements.

Does every company in Paraguay pay only 10% tax?

No. IRE has a general 10% rate on net taxable income, but VAT, dividends, withholding, municipal charges and other obligations may also apply.

Can any company use the maquila regime?

No. The program must meet legal requirements and be approved. The Maquila Regime applies a 1% Single Maquila Tax according to the statutory taxable base and the conditions of the approved program.

Can a Brazilian company simply be “moved” to Paraguay?

Usually the analysis concerns establishing or reorganizing a Paraguayan operation, not transferring a Brazilian registration. Contracts, assets, people, invoicing and tax residence in both countries must be assessed.

Does HUBPY replace legal or accounting counsel?

No. HUBPY coordinates the project and works with the required professionals. Legal, tax, accounting and customs acts remain with duly licensed parties.

How long does it take to open a company in Paraguay?

It depends on the legal form and how complete the documentation is. A simplified EAS can be registered digitally in a short time; an S.A. or S.R.L. with notarised articles, registry filing, RUC and bank account usually takes several weeks. Foreign documents must be apostilled and translated first, which is often the slowest part.

Do I need to live in Paraguay to own a company there?

No. Non-residents can be shareholders and can act through a power of attorney. In practice the company needs a local legal address and a representative who can deal with banks and authorities; residence and a Paraguayan ID (cédula) make day-to-day operations easier.

Is there a minimum capital?

There is no general legal minimum for most forms, but the capital must be consistent with the declared activity, and banks and authorities look at it. Regulated activities and some special regimes have their own requirements.

How are dividends sent to Brazil taxed?

In Paraguay, dividends are subject to IDU: 8% for resident beneficiaries and 15% for non-resident beneficiaries. In Brazil, the shareholder's tax residence and Brazilian rules on foreign-controlled entities also have to be analysed before deciding the structure.

Can I open a corporate bank account as a foreigner?

Yes, once the company has its RUC and registration documents. Banks apply know-your-customer and beneficial-owner checks, so having all shareholders' documents ready speeds the process.

Next step

Tell us what you want to build in Paraguay.

A useful first conversation explains the business before recommending a structure.

contacto@hubpy.com.py+55 11 94310-3107

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