A new simplified system for opening and closing companies in Paraguay

By Lorena Dolsa, Berkemeyer Attorneys & Counselors

Paraguayan Legislature has passed a law which creates a simplified mechanism for the opening and closing of companies, known as Suace (Sistema Unificado para la Apertura y Cierre de Empresas in Spanish). (1)

This public office would receive the formal requests to open and close companies, in order to facilitate, streamline, and make the process more transparent. Moreover, the gathering of information in a single office would make it readily available for statistical purposes and the creation of efficient public policies to promote the companies in general, service providers, industrial parks and other commercial entities each according to its specific law.

Suace will be based in Asuncion (Paraguay´s capital city) and depend directly of the Ministry of Industry and Trade. Other public institutions will also be represented such as: Paraguayan Office of Public Records, Ministry of Justice and Labour, Ministry of Finance, Ministry of the Interior, Paraguayan Social Security Institute, National Customs, National Procurement and Municipalities

The main objective of Suace is to assist the user with the legal requirements for the creation and closing of companies; likewise, the office would be in charge of assisting businessmen, and investors with migration documents, and other legal requisites to benefit from the incentives law. The office would also provide information on tax payer credentials (RUC – Registro Unico del Contribuyente), municipal patents, social security of employees etc.

If all documentation has been filed, the time for the creation or closing of companies would be no more than 30 days.

In order to access Suace, a form must be filled out and along with the required documents for each case, in electronic format, allowing users to know the status of their requests online.

The law was sanctioned by the Paraguayan legislature on July 12, 2013 and the Executive Branch of the Government has no more than 60 days to regulate the law. Afterward the full functions of Suace should be in place 90 days after the law as entered into force. (2)

(1) Ley que crea el sistema unificado de atención empresarial para la apertura y cierre de empresas (Suace).

(2) La ley fue sancionada en fecha 12 de Julio de 2013, y deberá ser reglamentada por el Poder Ejecutivo en un plazo no mayor de 60 días, estimándose el funcionamiento completo del SUACE en 90 días a contar desde la vigencia de la ley.