Description of the core change(s) brought by this policy instrument
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.
Please list the implementing agencies
This law will be implemented in a coordinated manner by the following institutions:
- Ministry of Finance
- Ministry of Industry and Commerce:
- Unified System for Opening and Closing Companies (SUACE)
- National Entrepreneurship Directorate (DINAEM)
- Supreme Court of Justice:
- General Directorate of Public Registries
Please name the policy advisor(s) or leader(s) who have been key in introducing and/or designing this policy instrument
The enforcement of the law was the result of a coordinated work between the Ministry of Finance, the Ministry of Industry and Commerce, the Management Unit of the Presidency of the Republic and relevant legislators in both Chambers of the National Congress.
If you marked "start-up" and/or "scale-up" firms, please provide the specific definitions used
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.
Abstract summary of this Policy resource
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.
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.
In March 2019, the Executive Branch presented a package of projects to strengthen the country's business climate.
This Law of Simplified Stock Companies (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.
The Law was approved in the House of Representatives on November 14, 2019, and the Senate then unanimously approved it on December 11 of the same year.
The President signed the bill into Law on January 8, 2020.
Notes and additional context
Now the challenge is in regulation and implementation, which will take place during the 2020.