Business opportunities in Paraguay are at the top of regional preferences among businessmen, entrepreneurs and investors. This was confirmed last year by Brazil's Getulio Vargas Foundation, which ranked Paraguay as the country with the best business climate in the region. best business climate in the region..
Among the reasons that explain the attractiveness of Paraguay for the establishment of companies and businesses are the fiscal and monetary stability, the low tax burden, the favorable regime for the maquila and foreign investment, the access to Mercosur as one of its partners, the labor environment, all of which make up the scenario for a macroeconomic stability of more than two decades uninterruptedly.
The World Bank itself had already highlighted Paraguay's economic situation, with an average growth of five percent in the last decade, supported by "significant progress" in economic reforms, such as the Fiscal Responsibility Law, inflation targets and the creation of the Fiscal Advisory Council.
Requirements to open a company in Paraguay
One of the attractions of investing in Paraguay is the ease of opening companies and businesses. Since 2006, in fact, there is the SUACE (Unified System of Opening and Closing of Companies), which brings together seven agencies in a sort of one-stop shop.
Those who are interested in opening a company in the country must obtain an Investor's Certificate, which enables them to manage a productive investment project. This certificate also facilitates the issuance of the Paraguayan identity card.
The SUACE is the body that centralizes the issuance of documentation related to the Tax Authorities, the Public Registry of Commerce (individuals and legal entities), the Single Taxpayer Registry (RUC), the commercial license and the City Hall License.
Residency in Paraguay
Residency in Paraguay has different modalities:
- Precarious residence (for periods of less than one year).
- Temporary residence (up to one year, renewable).
- Permanent residence, both to develop professional activities and to establish a business or a company, since it is the only one that grants the benefit of access to the Paraguayan identity card.
- Foreign Investor Establishment (SUACE), oriented to the opening of business ventures.
With our headquarters in the Word Trade Center of Asuncion, Gestoria en Paraguay is a leader in the management of the in Paraguay.. For more than a decade, we have been accompanying and supporting businessmen and investors, facilitating the necessary procedures to obtain their settlement and/or the documentation of their Paraguayan identity.
Sectors with business opportunities in Paraguay
Among the sectors of activity that represent some of the main business opportunities in Paraguay, the following stand out:
- The agricultural sector, both activities oriented to the sale of inputs to local producers, as well as the export of agricultural products from Paraguay, produced and processed in the country.
- One area that is growing is consulting for different sectors of activity, especially within the framework of programs that are receiving support from the IDB, the World Bank and the European Union, which are watching with interest the evolution of Paraguay's economic situation.
- In the same scenario as the previous point, there are growing opportunities in infrastructure-oriented areas, in which Paraguay still has significant deficits.
- In terms of imports, on which the country is highly dependent. In this regard, special mention should be made of the agricultural sector. Agricultural exports from Paraguay are very demanding of imported inputs, from fertilizers to machinery and equipment for food processing.
- In the meat and livestock sector, significant investments are required for livestock traceability and slaughter.
- Within the framework of the Kyoto Protocol, there is a growing framework of investment opportunities through the Clean Development Mechanisms (CDM). The Industrial Union of Paraguay (UIP) has created the Clean Technology Center, with the objective of identifying projects that contribute to environmental preservation and technological development.
Franchises in Paraguay
The franchise system in Paraguay has been consolidating for several years, following a trend that has global reach. This way of developing markets facilitates the expansion of business both nationally and internationally.
The franchise system has several advantages, both for the franchisor (the brand to be franchised) and the franchisee (the investor).
Advantages for the franchisor include: growing with third-party capital; the investor pays an initial fee; greater purchasing power; higher income; incorporates a powerful source of new ideas; flexibility.
Advantages for the franchisee: starts its business with a recognized brand; advertising financed jointly with other franchisees; lower risk due to the backing of a brand with a proven track record.
Since the end of 2012, Paraguay already had two associations: the Paraguayan Chamber of Franchising and the Paraguayan Association of Entrepreneurship and Franchising, which is a member of the Ibero-American Franchise Federation.
In addition to the aforementioned associations, there are other sources of information on franchises in Paraguay. Among them:
- Franchise Direct: a global franchise site, with opportunities to invest in franchises in Paraguay. franchises in Paraguay.
- com.py: as its name indicates, it is a site directly oriented to business opportunities in business opportunities in Paraguay.
- Negociable: a platform for buying and selling of businesses and franchises in Paraguay.
If you want to know more about the history and context of the franchising system in Paraguay, the newspaper ABC color has an interesting article about franchising companies in Paraguay.
Paraguay's economic growth: actual data
The growth of Paraguay's economy is not new, much less a myth. Paraguay's economic situation was recently the subject of an extensive report by the U.S. network CNN, which focused on this sustained phenomenon. In addition to the structural reforms highlighted by the main international organizations (World Bank, International Economic Forum, Getulio Vargas Foundation, IDB, to mention a few), there is the more than significant reduction in poverty rates, from more than 32 percent to figures below 20 percent.
If you want to know more about Paraguay's Paraguay's economic growthwe leave you with our article highlighting some of the most notable indicators.
