The EAS is presented as a novel corporate vehicle of limited liability, with certain particularities and advantages comparing to other existing corporate vehicles, such as:
- They may be constituted with a single shareholder, whereas a public or private person.
- Speedy incorporation: they may be created within 3 days.
- Easier maintenance comparing with a joint stock company since they don’t require the holding of an annual shareholders’ meeting or the obligation of having a comptroller or an overseeing organism.
Efficient and digital incorporation and processing
- The opening, closing, dissolution, liquidation and transformation of an EAS will be processed digitally, by the Unified System of Opening and Closing of Companies (“SUACE”).
- For the constitution of an EAS in 3 business days, SUACE will make available to the public a default template of bylaws that may be modified in the future. Registration of bylaws that are not submitted pursuant to the SUACE template imply an incorporation period longer than 3 days.
Some important differences with other corporate vehicles
- The EAS are not allowed to make public offerings of securities in Paraguay.
- Meetings can be held outside the EAS domicile and even virtually.
- From a tax law perspective, the EAS must pay the Corporate Income Tax (IRE).
The Ministry of Industry and Commerce (MIC) is expected to issue a resolution so that the regulation can be operative for the incorporation of EAS in Paraguay.
The Central Bank of Paraguay is also expected to issue regulations so that financial entities can open bank accounts to the EAS within reasonable periods of time.