E.A.S

Competitive tax and corporate framework

Paraguay offers a simple and predictable tax and corporate framework, with moderate tax rates and a clear legal structure. This makes it possible to establish and operate businesses with manageable tax and administrative costs, facilitating medium- and long-term business planning.

Clear and defensible structures

We design corporate structures that are aligned with the company’s actual business operations. We avoid unnecessary or complex arrangements, prioritizing clear, consistent solutions that are easily justifiable to government agencies, banks, and third parties.

Legal, administrative, and accounting coordination

We centralize the company’s legal, administrative, and accounting management to ensure consistency between its incorporation, day-to-day operations, and tax obligations, thereby avoiding errors resulting from fragmented management..

Operations team in Paraguay

Having an operational team in Paraguay enables us to handle administrative procedures directly and provide ongoing oversight of the company. This ensures greater efficiency, better communication, and constant monitoring from inception through to operations.

Who is starting a business in Paraguay for?

Incorporating a company in Paraguay is suitable for:

Business owners who wish to operate locally or abroad

Professionals who require a corporate structure

Investors operating in Paraguay

People who combine their home and business

Every case is different and requires a preliminary analysis; each structure must be tailored to the client’s business activities, source of income, and country of tax residence.

Business and Tax Framework in Paraguay

Local corporate income tax: 10%

Personal income tax: 10% (largely deductible)

Sales Tax: 10%

Foreign corporate income tax: 0%

(well-defined structures)

A clear definition of the business activities and operations is key to ensuring an efficient and compliant structure.

LLC

Your LLC in the U.S, fully protected from day one

The Three Pillars of Success

Zero RiskZero Risk

Solid structures with effective management. Avoid being classified as a shell company and protect your tax residency in Europe.

Financial Freedom

Guaranteed access to the fintech ecosystem and digital banking. Move your capital with the agility that traditional European banking no longer offers

Efficiency and Compliance

Master the OSS system and cross-border sales. We handle compliance so you can focus on growing your business.

Grow your business without compromising your peace of mind. Starting a business as an LLC means separating your professional success from your family’s financial security. Enjoy greater tax flexibility, less red tape, and easier access to the capital you need to scale your business

What is the process of starting a business like?

1

Analysis of activities and operations.

2

Definition of corporate structure.

3

Budgeting and planning.

4

Document preparation.

5

Articles of Incorporation.

6

Tax registration (RUC).

7

Opening of operations and accounting.

8

Company ready to begin operations.

Setting up a business doesn’t end with its incorporation. We handle the accounting, tax obligations, and initial operations to ensure everything runs smoothly from day one.

Accounting and Operational Management Services

Accounting

We manage the company’s accounting in accordance with Paraguayan regulations, ensuring orderly and consistent record-keeping of its financial activities. Our approach is not merely to comply with regulations, but to provide a clear picture of the financial situation to support sound decision-making.

Tax compliance

Supervisamos el cumplimiento de las obligaciones fiscales de la empresa, coordinando declaraciones, plazos y requerimientos ante la administración tributaria. De este modo, evitamos contingencias y garantizamos una operativa alineada con el marco legal vigente.

Administrative support

We provide ongoing administrative support for the day-to-day management of the company, centralizing the procedures, documentation, and communications necessary for smooth operations, thereby reducing the internal workload and preventing errors caused by a lack of coordination.

At 5 Flags Capital, we approach business formation with a combined tax and operational strategy, ensuring that the structure aligns with the company’s actual business activities from day one. We have a local team in Paraguay, design clear and defensible structures, and take a medium- to long-term view, supporting our clients throughout the process and in their subsequent operations.

Why start your business with 5 Flags Capital?