Opening a corporate bank account in Paraguay offers numerous advantages to companies wishing to establish themselves in this thriving economy. From facilitating financial transactions to ensuring compliance with local regulations, a corporate bank account is essential for managing company funds and conducting business operations efficiently.
Knowing how to open a corporate bank account in Paraguay is vital if you wish to incorporate a company in one of the most attractive economies for business in Latin America. Paraguay has experienced remarkable economic growth, with a consistent 4.5% annual growth rate in recent decades. Fiscal and debt adjustments have contributed to the country’s economic stability and strong GDP.
Read on to find out how to open a corporate bank account in Paraguay and expand your business. At Biz Latin Hub, we are specialists in Latin America and the Caribbean, with offices across the region. We can walk you through the process and provide full ongoing back-office services for the entirety of your business life cycle.
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Why Open a Corporate Bank Account in Paraguay?
While Paraguay boasts a stable economy, opening a corporate bank account in the country is a crucial measure to safeguard your assets from foreign currency devaluation. It’s also the quickest and most secure way to provide your business’s financial records for inspection before local authorities. Furthermore, those who open a corporate bank account in Paraguay can benefit from the advantages offered by Mercosur for Micro, Small, and Medium Enterprises (MSMEs) and foreign entrepreneurs investing in the region. Paraguay’s banks are renowned for their efficiency and reliability of services.
Main Options in Paraguay for International Businesses
Each of these banks offers a range of services tailored to the needs of international companies. It is advisable to study the offers, fees and specific requirements of each bank to find the one that best meets the needs of your business in Paraguay.
- Banco Itaú.
- Banco Continental.
- Banco Regional.
- Banco Familiar.
- Basa Bank.
- Sudameris Bank.
- Atlas Bank.
- Amambay Bank.
We recommend the following banks for foreign companies: Banco Itaú and Sudameris.
What do I need to open a corporate bank account in Paraguay?
Financial institutions have some autonomy to set their customer admission policies, but there are standard requirements imposed by the banking law and the Central Bank of Paraguay. Generally, customers wishing to open a corporate account in Paraguay must submit documents including the Single Service Contract, ID copies, municipal patent copies, bylaws, assembly minutes, powers of attorney, and shareholder registration cards. Sometimes a deposit may be required by the bank as necessary for opening a corporate account.
Some of the documents required to open a corporate bank account in Paraguay are:
- Single Service Contract.
- Natural person link request.
- Authenticated photocopy of the signatories Identity card.
- Authenticated photocopy of R.U.C.
- Authenticated photocopy of the current municipal patent.
- Authenticated copy of bylaws.
- Authenticated copy of the last assembly minutes.
- Authenticated copy of powers.
- Shareholders’ signature registration card.
- Assets manifestation.
- Deposit, as established by each financial entity.
3 Steps to opening a corporate bank account in Paraguay
To open a corporate bank account in Paraguay you must follow these 3 steps:
- Step 1 – Partner with a local expert in Paraguay.
- Step 2 – Find a Paraguayan bank well-suited to your business needs.
- Step 3 – Prepare required banking documentation.
Step 1: Partner with a local expert in Paraguay
Opening a corporate bank account in Paraguay is a relatively easy process, but it can be more difficult for foreign companies. It may involve overcoming language barriers, and understanding tax regulations, cultural nuances, and the rules around hiring local staff. You may choose to partner with a local law firm or consultancy to facilitate the process.
Working with a trusted local partner ensures compliance with local legislation and contributes to the success of your business.
Step 2: Choose a Paraguayan bank
Paraguay has a number of banks companies can choose from. Each bank provides a unique array of services, and some will be better suited to match your business needs. The two banks recommended by Biz Latin Hub, with suitable experience offering services to foreign companies, are Banco Itaú and Sudameris.
Step 3: Prepare required documentation
When you request the opening of a corporate bank account, banks in Paraguay will require a number of documents to make sure you are eligible. Preparing these documents can take some time. Once you have handed them over, the bank will validate them and if your application is successful, you will be provided with the details needed to activate your newly opened corporate account.
FAQs on opening a corporate bank account in Paraguay
Based on our extensive experience, these are the most common concerns for our clients on opening a company bank account in Paraguay:
1. Can I open a corporate bank account online in Paraguay?
No. However, you can open a bank account from abroad with the support of a local attorney empowered through a power of attorney (POA).
2. What documents do I need to open a company bank account in Paraguay?
The following documents are required to open the company bank account:
- Copy of the articles of incorporation of the company.
- Certificate of good standing for the company.
- Commercial license, where applicable.
- Bank reference letter. If the company doesn’t have a bank reference letter, the shareholders of the company will need to provide it.
- Evidence of income can be proven through a copy of the income tax declaration of the shareholders.
- Passport copies for all shareholders and members of the company.
Letter of authorization from the shareholders or owners of the company.
3. Who can have access to a company bank account?
Any member of the company that is authorized by company shareholders can have access to the bank account.
4. What is the best bank in Paraguay for foreign companies?
We recommend the following banks for foreign companies: Banco Itau and Sudameris.
5. Why do companies open bank accounts in Paraguay?
Companies choose to open bank accounts in Paraguay due to the economic and political stability, the ability to hold currency in US Dollars, the territorial taxation system, and banking privacy.
6. Does Paraguay have bank secrecy?
In Paraguay bank secrecy is a commitment to the bank’s policies and the confidentiality of financial information.
Biz Latin Hub can help you open a corporate bank account in Paraguay
Business owners should think carefully about which financial entity is the most appropriate before opening a corporate bank account. Avoid penalties or sanctions from local institutions and generate success for your business in Paraguay by seeking a trusted corporate secretarial services provider to support your company formation needs, including opening corporate accounts.
Expand to Paraguay through Biz Latin Hub. Our team of local and expatriate professionals has the depth of knowledge and experience to enable foreign companies in Paraguay through providing a full range of market entry and back-office services. This includes market entry strategy, trade law advice and support, company formation, ongoing commercial representation, hiring, visa processing, and due diligence activities.
Get in touch with us to start your international business adventure now.
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