EAS or SA in Paraguay: pretty much every foreign entrepreneur asks this question when it's time to set up a company here. The good news is that in most cases the answer is simple. Here are the real differences, the one criterion that decides it, and the case where you don't even need a company at all.
The two structures, in short
When you set up a capital company in Paraguay, the choice almost always comes down to two forms: theEAS (Empresa por Acciones Simplificadas) and the SA (Sociedad Anónima).
The EAS is roughly the local equivalent of an LLC or a simplified corporation. It was designed to get you moving fast: incorporation in a few weeks in most cases, contained cost (typically a few hundred euros with a lawyer, rates vary by firm), light paperwork, and it works perfectly with a single shareholder. It's the structure chosen by the vast majority of foreign entrepreneurs starting an activity here.
The SA is the older, heavier form. More formal bylaws, tighter governance, and incorporation timelines measured in months rather than weeks. In return, it offers a solid framework for multi-shareholder projects, investors coming in and out of the capital, or larger sums at stake.
EAS or SA in Paraguay: the differences that actually matter
On paper you could compare twenty criteria. In practice, four are enough:
- Timeline : a few weeks for an EAS, one to several months for an SA. If your business needs to start invoicing quickly, this difference is not a minor detail.
- Cost : setting up an EAS stays cheap by European standards. An SA costs more to incorporate and to run, because there's more paperwork to maintain.
- Governance : the EAS is managed in a flexible way, which suits a solo founder or two partners who trust each other. The SA imposes a stricter framework, valuable precisely when partners don't know each other well or when interests diverge.
- Image with partners : for a large project with institutional investors or corporate partners, the SA remains the expected form. For a services, trading, or e-commerce business, nobody will hold an EAS against you.
In the end, the criterion that decides it is almost always this one: who's coming into the capital?
Start as an EAS, grow into an SA: the best of both worlds
Something few people know: the choice is not set in stone. You can perfectly well start with an EAS, to move fast and keep costs down, then switch to an SA later, once the project grows. It is often the best option when you want to launch your activity quickly while holding serious medium- to long-term ambitions: you invoice straight away with the EAS, and you only take on the formalities of an SA the day they truly become useful (new shareholders, a fundraising round, institutional partners). You save time at the outset without closing the door on a more robust structure down the line.
The case everyone forgets: sometimes you don't need a company at all
Many people arrive with the European reflex: an activity means a company. In Paraguay, an individual who has their cédula can activate a simple personal tax number, the RUC, and invoice with it. It's a status close to the French auto-entrepreneur: no company formation, no capital, no bylaws.
For a freelancer, a consultant, or a small-scale activity just getting started, this is often the best way in: you test, you invoice, and you only set up an EAS the day your activity justifies it (hiring, volume, asset separation, partners). We cover this in detail on our accounting and RUC page.
What comes after incorporation (and that nobody tells you)
Whatever structure you choose, incorporation is only half the story. The other half is the ongoing administrative life:
- Bookkeeping is mandatory, with regular filings, including IVA (local VAT). A missed filing can block a file for months. We regularly see entrepreneurs who picked the cheapest accountant and paid dearly for it in late filings and fines. Be smart: pick a responsive accountant, even if it costs a bit more.
- Opening a business bank account takes time. Expect several weeks after incorporation, and some banks want to physically visit your office before opening the account, it's their way of screening out shell companies.
- You need a proper address. Banks and the administration pay close attention to this. If you don't have an office yet, a company domiciliation has its own rule that settles this from the start.
One last practical point: you can set up a company just as well with temporary residency as with permanent residency. No need to wait for permanent status to start a business.
This article is educational, not legal advice. Timelines, costs, and requirements change and depend on your specific project. Before signing anything, have your setup validated by a professional on the ground.
To go further: our complete guide to opening a company in Paraguay, and once the company is set up, how to keep your accounting and invoices in Paraguay.
We help you choose, then we handle the rest
EAS, SA, or a simple RUC: the right choice depends on your actual project, not a comparison chart. Our team in Asunción will tell you straight what makes sense in your case, then handles the incorporation, the monthly bookkeeping, and everything that comes with it, in French. Take a look at our pricing or write to us to scope your project before you set up anything.