Doing Business with Paraguay

Exporting goods to Paraguay involves several key steps. Here’s a comprehensive guide:

1. Research Market Requirements

   • Understand Paraguay’s import regulations and product standards.

2. Identify Your Product’s HS Code

   • Determine the Harmonized System (HS) code to understand tariffs and regulations.

3. Prepare Documentation

   • Gather necessary export documents: commercial invoice, packing list, certificate of origin, and bill of lading.

4. Check Tariff and Non-Tariff Barriers

   • Verify any tariffs and ensure compliance with Paraguay’s non-tariff measures.

5. Select a Reliable Freight Forwarder

   • Choose a logistics provider experienced in shipping to Paraguay.

6. Comply with Labeling and Packaging Regulations

   • Ensure your products meet local labeling and packaging standards.

7. Arrange for Insurance

   • Secure insurance to cover potential shipping risks.

8. Submit Customs Declaration

   • Work with your freight forwarder to submit the necessary customs declaration.

9. Pay Applicable Duties and Taxes

   • Calculate and pay any required import duties and taxes.

10. Track and Confirm Delivery

    • Monitor the shipment to ensure it reaches the destination safely.

Key Contacts

• Paraguay Customs Authority
  • Website: Dirección Nacional de Aduanas

Importing goods into Paraguay involves several key steps. Here’s a detailed guide:

1. Research Import Regulations

   • Understand Paraguay’s import laws and product-specific regulations.

2. Obtain Necessary Licenses

   • Check if your products require special import licenses or permits.

3. Classify Your Goods

   • Determine the Harmonized System (HS) code for your products to understand tariffs and duties.

4. Prepare Documentation

   • Gather required documents: commercial invoice, bill of lading, packing list, and certificate of origin.

5. Choose a Customs Broker

   • Hire a licensed customs broker to assist with the import process.

6. Comply with Labeling and Packaging Standards

   • Ensure products meet local labeling and packaging requirements.

7. Submit Customs Declaration

   • File a customs declaration with the Paraguay Customs Authority.

8. Pay Duties and Taxes

   • Calculate and pay any applicable import duties and taxes.

9. Arrange for Transportation and Delivery

   • Coordinate with a logistics provider to transport goods to their final destination.

10. Track and Confirm Receipt

    • Monitor shipment progress and confirm delivery upon arrival.

Key Contacts

• Paraguay Customs Authority
  • Website: Dirección Nacional de Aduanas

Incorporating a company in Paraguay involves several key steps. Here’s a detailed guide:

1. Choose a Business Structure

   • Decide on the type of company, such as a Sociedad Anónima (SA) or Sociedad de Responsabilidad Limitada (SRL).

2. Reserve a Company Name

   • Ensure the name is unique and reserve it with the Public Registry.

3. Draft the Articles of Incorporation

   • Prepare the company’s articles of incorporation with details on directors and shareholders.

4. Notarize Documents

   • Have the incorporation documents notarized by a public notary.

5. Register with the Public Registry

   • Submit the notarized documents to the Public Registry of Commerce.

6. Obtain a Tax Identification Number (RUC)

   • Register with the Subsecretaría de Estado de Tributación (SET) for tax purposes.

7. Open a Bank Account

   • Open a corporate bank account for financial transactions.

8. Register for Social Security

   • Register with the Instituto de Previsión Social (IPS) for employee social security.

Costs

• Name Reservation Fee: Varies
• Notarization and Legal Fees: Approximately $500 – $1,000 USD
• Registration Fee: Varies based on capital

Key Contacts

• Public Registry of Commerce
  • Website: Registro Público de Comercio
• Subsecretaría de Estado de Tributación (SET)
  • Website: SET Paraguay

Setting up a manufacturing plant in Paraguay involves several key steps. Here’s a detailed guide:

1. Conduct a Feasibility Study

   • Analyze market demand, location, and resource availability.

2. Choose a Business Structure

   • Decide on the type of business entity, such as a Limited Liability Company (SRL).

3. Register the Company

   • Register your company with the Public Registry of Commerce.

4. Secure Financing

   • Arrange funding through loans or investors.

5. Select a Location

   • Choose an industrial area with access to infrastructure and resources.

6. Obtain Necessary Permits and Licenses

   • Apply for construction permits, environmental approvals, and industry-specific licenses.

7. Design and Construct the Facility

   • Hire architects and contractors to design and build the plant.

8. Purchase and Install Equipment

   • Acquire machinery and ensure it meets safety and operational standards.

9. Hire and Train Employees

   • Recruit skilled workers and provide necessary training.

10. Set Up Supply Chain and Distribution

    • Establish relationships with suppliers and distributors.

Key Contacts

• Ministry of Industry and Commerce
  • Website: MIC Paraguay
• Public Registry of Commerce
  • Website: Registro Público de Comercio

Registering a trademark in Paraguay involves several steps. Here’s a detailed guide:

1. Conduct a Trademark Search

   • Ensure your trademark is unique by searching existing trademarks in Paraguay.

2. Prepare Your Application

   • Gather necessary details, including the trademark design and the list of goods/services it will cover.

3. Submit the Application

   • File your application with the National Directorate of Intellectual Property (DINAPI).

4. Examination Process

   • The application will be examined for compliance and potential conflicts with existing trademarks.

5. Publication for Opposition

   • If approved, the trademark is published for a period during which others can oppose it.

6. Receive Registration Certificate

   • If no oppositions are filed, you receive the official trademark registration certificate.

Costs

• Application Fee: Approximately $60 – $100 USD

Key Contacts

• National Directorate of Intellectual Property (DINAPI)
  • Website: DINAPI Paraguay

Resolving commercial disputes in Paraguay involves several key steps. Here’s a detailed guide:

1. Consult Legal Counsel

   • Engage a lawyer experienced in Paraguayan commercial law for guidance.

2. Attempt Negotiation

   • Try to resolve the dispute amicably through direct negotiation with the other party.

3. Mediation

   • Consider mediation with a neutral third party to facilitate a resolution.

4. Arbitration

   • Use arbitration for a binding resolution if both parties agree. Paraguay supports arbitration as an alternative dispute resolution method.

5. Litigation

   • If other methods fail, file a lawsuit in the relevant Paraguayan court. Prepare for a formal legal process.

6. Enforcement of Judgments

   • Ensure the decision is enforced through the relevant authorities.

Costs

• Legal Fees: Vary depending on the complexity and length of the dispute.
• Court Fees: Required for litigation and depend on the case specifics.

Key Contacts

• Judicial Power of Paraguay
  • Website: Poder Judicial de Paraguay
• Ministry of Justice
  • Website: Ministry of Justice Paraguay

When considering business in Paraguay, it’s important to understand various factors:

Social and Cultural Factors

• Language: Spanish and Guarani are official languages; Spanish is widely used in business.
• Business Etiquette: Personal relationships are important; meetings often begin with informal conversation.

Political Factors

• Government: Presidential Republic.
• Stability: Generally stable, but staying informed about political changes is beneficial.

Economic Factors

• Currency: Paraguayan Guarani (PYG).
• Investment Opportunities: Key sectors include agriculture, manufacturing, and energy.

Foreign Exchange

• Exchange Rate: The Guarani can fluctuate; monitoring currency markets is advisable.
• Regulations: Some exchange controls exist; consult local financial experts.

Rule of Law

• Legal System: Based on civil law; provides a framework for business operations.
• Intellectual Property: Protections align with international standards.

Infrastructure

• Transport: Developing infrastructure; road and river transport are key.
• Utilities: Access can be variable; plan for contingencies.

Key Contacts

• Ministry of Industry and Commerce
  • Website: MIC Paraguay
• Central Bank of Paraguay
  • Website: BCP Paraguay