EAS (Simplified Stock Companies) Legislation

Back to Atlas

What are the main aims and objectives?

Paraguay has significant challenges in the business climate.

The Doing Business 2019 ranking shows that the country is ranked 113 out of 190 countries, although it is in a better position than Argentina and Bolivia in that year, the country has significant challenges regarding business opening , obtaining credits and resolution of the insolvency of companies.

n the 2019 edition of the Global Competitiveness Report, Paraguay was ranked 124th out of 141 countries analyzed in terms of business start-up costs and 123rd in terms of time to open a business. This situation, which greatly hindered the development of new businesses in the country, led the government, with the support of the World Bank, to promote the legal reform initiative for the creation of the Simplified Stock Company (EAS for its acronym in Spanish).

How does the program work?

This Law of Simplified Stock Companies "Empresas por Acciones Simplificadas" (EAS for its acronym in Spanish) is the sum of efforts to articulate solutions to the barriers reported by the stakeholders of the entrepreneurial ecosystem: the bureaucratic difficulties for the creation and formalization of new companies. In collaboration with entrepreneur organizations, there was public analysis of the draft EAS Law with a view towards further developing and articulating the business ecosystem.

This Law seeks to facilitate the opening of companies and the increase of new formal companies, increase productivity and at the same time create a greater number of employment with social security.

MSMEs are the largest creators of employment in the country, so 3 out of every 4 people employed (76%) are employed in companies with up to 50 people.

This law allows the rapid, simple, digital and free formal registration of new companies. In addition, the restructuring the country’s investment and export network gives entrepreneurs access to international market opportunities, facilitating participation in overseas trade missions.

Eligibility

The Law of Simplified Stock Companies (EAS for its acronym in Spanish), may be constituted by one or more natural or legal persons, who make contributions in order to carry out a lawful lucrative activity in an organized manner, participating in the benefits and bearing the losses in the form provided for in this Law. The unipersonal EAS cannot constitute or participate in another unipersonal EAS.

Timeline

March 2019: The Executive Branch presented a package of projects to strengthen the country's business climate.

November 14, 2019: The Law was approved in the House of Representatives

December 11, 2019: The Senate then unanimously approved it.

January 8, 2020: The President signed the bill into Law on

August 28, 2020: Official Publication of the Regulatory Decree of the Law

October 9, 2020: Official Publication of the Regulatory Resolution of the Law at MIC

February 8, 2021: first formally approved company

What impact has been measured?

Creation of Simplified Stock Companies per year:
* 2021: 1.053
* 2022: 2.741

As of February 2023:
* 72 % of the EAS created , are micro, 22% are small and 6% are medium. 

* 68% are led by men and 32% by women.

* 187 million of declared investment for the incorporation of the companies.

What lessons can be learned?
The adaptation of banks and finance companies to accept EAS documents to open a bank account was slow and generated a lot of frustration in the first companies created.
Notes + Additional Context

The Simplified Stock Companies (EAS for its acronym in Spanish), is a type of company, very innovative in Paraguayan corporate law. Its objective is to stimulate entrepreneurship, due to the facilities and flexibilities proposed for its constitution and operation.

The EAS can be constituted by one or several natural or legal persons, its nature is commercial, it is created by a standard form and it is born after the registration of the Ministry of Finance. The process is completely digital and free.

 

n the SUACE/EAS platform, it is possible to request the opening of an Simplified Stock Company, through a single electronic form, the opening of an EAS is completely ON LINE through the web https://eas.mic.gov.py/ and is accessed only through the electronic identity of the main Legal Representative of the company of Paraguayan nationality or who has a Paraguayan identity card.  

A summary of the advantages and facilities of the platform can be found here.

Relevant Documents
FICHA INCENTIVOS_EAS_OK.pdf 23-02 PRESENTACION EAS 2.pdf

CURATED BY

Juan Paredes Romero

National Director of Entrepreneurship
Ministry of Industry and Commerce of Paraguay
Paraguay