Legal representative in Paraguay
for owners living abroad

What does a legal representative in Paraguay do?

The legal representative answers for the company before government agencies, banks and third parties in Paraguay. They sign and follow up on procedures with the DNIT, banks, the RUN, IPS, MTESS, MIC and Migraciones, receive notices and keep deadlines up to date, always within the scope granted by the bylaws and the power of attorney.

Typical functions; the scope in each case is defined in the bylaws and the power of attorney. Agencies verified as of 09/24/2026: the DNIT exists since Law 7143/2023, and the RUN has operated since 01/14/2026.

To run an EAS online, the representative needs an electronic identity, which can only be obtained with a Paraguayan cédula, and the final signature for the RUC at the DNIT is in person. If the company does not exist yet, we combine representation with our service to open a company in Paraguay.

Who can be the company's legal representative?

All companies (EAS, SRL and S.A.) need a legal representative with a Paraguayan cédula. In an EAS, a foreigner also needs permanent residency: according to SUACE, a foreigner without permanent residency "CANNOT be a member of the management body".

Sources: SUACE FAQ and EAS FAQ, verified as of 09/24/2026.

What if I want to be the representative myself? You need a Paraguayan cédula and, for an EAS, permanent residency. Depending on your nationality, the path is the 2-year temporary residency or the temporary residency under Law 6984/2022; direct routes include the Paraguay Investor Pass, investor residency through SUACE and, for spouses or children of Paraguayans, the DNM's own category. See residency and Paraguayan ID. In the meantime, a professional representative fulfills the requirement.

What can the legal representative not do?

The representative acts only within the bylaws and the power of attorney. Selling or encumbering assets, taking loans, amending the bylaws, admitting partners or distributing profits are outside their scope, unless you expressly authorize each act. They also do not make business decisions or replace your accountant in the country where you live.

Outside the power of attorney, unless authorized in writing for that act:

• selling, mortgaging or pledging company assets;
• taking loans, signing guarantees or taking on debt on behalf of the company;
• amending the bylaws, admitting or removing partners;
• deciding on profit distribution, which is the partners' decision;
• closing the company.

What we never do:

• sign without written instructions and without documentation supporting the act;
• lend our name to transactions without a proven source of funds;
• advise on taxes in your country of residence, which is the job of an accountant licensed there;
• guarantee government processing times or the approval of a bank account.

Important: the scope is defined in writing before the power of attorney is granted. If an act is not covered in that document, the representative does not sign.

What are the responsibilities of the representative and the partner?

The representative is responsible for acting within the power received, following written instructions and keeping you informed. The partner is responsible for business decisions, the accuracy of the documents provided, the source of funds and the company's real operations. Your personal obligations in your home country remain yours.

Division of roles verified as of 09/24/2026. The legal extent of each party's liability depends on the company type, the bylaws and the specific case; the representation agreement sets it out in writing.

The Paraguayan side of the company stays up to date with our accountant in Ciudad del Este service.

How do you change or revoke the legal representative?

The power of attorney can be revoked, and the representative can be replaced by the body named in the bylaws. The change is complete when the new appointment is registered where the company is registered and reported to the DNIT and the banks. The new representative needs a Paraguayan cédula and, in an EAS, if foreign, permanent residency.

1. Choose the new representative (with a Paraguayan cédula; in an EAS, if foreign, also with permanent residency).
2. The partners approve the new appointment according to the bylaws, and the previous power of attorney is revoked.
3. The change is registered: with the DGPEJBF, through SUACE, if the company is an EAS; with the RUN, if it is an SRL or S.A.
4. Data is updated at the DNIT, at the banks (authorized signatories) and, if there are employees, at IPS and MTESS.
5. The previous representative hands over documents, credentials and history to the new one.

Note: plan the change so the company is never left, even for a day, without an authorized representative. The exact steps depend on the bylaws; we check them before starting.

Why not use a nominee (front person) as representative?

Because on paper the nominee (known locally as a testaferro) ends up controlling your company: they are the one who signs before the DNIT, the bank and the registries. If they disappear, block the account or use the company for other purposes, you are the one who loses. Moreover, a shell structure without substance is exactly what tax administrations challenge.

Warning signs:

• the person "lends" their cédula for a monthly fee, with no contract or written scope;
• they provide no reports or copies of what they sign;
• in an EAS, they do not have permanent residency and therefore do not even meet the legal requirement;
• they promise a guaranteed bank account, guaranteed timelines or tax advantages without analyzing your case.

A professional representative works with a contract, a written scope, documented instructions and reports, and can be replaced by following the bylaws.

Which deadlines need to be tracked?

In Paraguay, the company files IVA (VAT) and RG 90 every month, IRE (corporate income tax) and financial statements once a year, withholds IDU when distributing profits and, if it has employees, contributes to IPS and complies with MTESS obligations. A temporary residency holder must apply for permanent residency in time. In your country of residence, personal obligations are defined by its own law.

Calendar verified as of 09/24/2026 against Law 6380/2019, the DNIT (RG 90), the MTESS (Res. 462/2026) and the DNM.

With our accountant in Ciudad del Este service, the Paraguayan calendar and the representation calendar are kept in one place.

Does having a representative in Paraguay change where you pay taxes?

No. The representative provides the company's legal presence in Paraguay, but does not change where you live or where the work is done. If you remain a resident of another country, that country may tax your income and the dividends you receive, and a company actually managed from abroad may be challenged by its tax authority.

What to know on the Paraguayan side:

• Under Law 6380/2019, the company pays 10% IRE on its net income and, when distributing profits, withholds 8% IDU if the partner is resident or 15% if not (art. 43).
• For the DNIT, an individual is a tax resident when they hold permanent residency (Decree 3181/19, art. 2); the cédula alone is not enough.
• If your country has a double taxation agreement with Paraguay, it appears in the DNIT's list of agreements.
• Services provided from Paraguay are Paraguayan-source income; if the work is actually done from another country, that country may recharacterize the operation.

Important: EC advises on the Paraguayan side. How dividends from a Paraguayan company are taxed in your country must be confirmed by an accountant licensed there. Legal representation does not replace real operations in Paraguay.

Learn more in our guides on taxes in Paraguay and opening a company in Paraguay as a foreigner.

How is a legal representative in Paraguay billed?

EC's legal representation is billed monthly, with a written quote based on the company type and the scope of representation. The fee covers the representative's work within the agreed scope and does not include official fees, company formation or monthly accounting, which are contracted separately.

Official fees for each agency are stated in the quote, separately from EC's fees.