Paraguay Economy Profile - Doing Business 2020
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Doing Business 2020 Paraguay
Economy Profile
Paraguay
Page 1
Doing Business 2020 Paraguay
Economy Profile of Paraguay
Doing Business 2020 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety
mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and the
transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as postfiling
processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for
insolvency
Employing workers Flexibility in employment regulation and redundancy cost
Page 2Doing Business 2020 Paraguay
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and
regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life
cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for
starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across
borders, enforcing contracts and resolving insolvency. Doing Business also measures features of employing workers. Although Doing Business does not present rankings
of economies on the employing workers indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages
economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector
researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational studies, which exhaustively cover business regulation and reform in different cities and regions within a nation.
These studies provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected
cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked.
The first Doing Business study, published in 2003, covered 5 indicator sets and 133 economies. This year’s study covers 11 indicator sets and 190 economies. Most
indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013
(Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business also collected data
for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from
feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the
regulatory environment for business around the world.
To learn more about Doing Business please visit doingbusiness.org
Page 3Doing Business 2020 Paraguay
Ease of Doing Business in DB RANK DB SCORE
Region Latin America & Caribbean
Paraguay
Income Category Upper middle income
Population 6,956,071 125 59.1
City Covered Asuncion
Rankings on Doing Business topics - Paraguay
75 72
80
109 105
126 128
132
143
160
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Topic Scores
76.0 71.1 70.4 66.1 40.0 34.0 64.1 65.1 61.6 42.1
Starting a Business (rank) 160 Getting Credit (rank) 132 Trading across Borders (rank) 128
Score of starting a business (0-100) 76.0 Score of getting credit (0-100) 40.0 Score of trading across borders (0-100) 65.1
Procedures (number) 7 Strength of legal rights index (0-12) 1 Time to export
Time (days) 35 Depth of credit information index (0-8) 7 Documentary compliance (hours) 24
Cost (number) 52.2 Credit registry coverage (% of adults) 23.9 Border compliance (hours) 120
Paid-in min. capital (% of income per capita) 0.0 Credit bureau coverage (% of adults) 59.9 Cost to export
Documentary compliance (USD) 120
Dealing with Construction Permits (rank) 75 Protecting Minority Investors (rank) 143 Border compliance (USD) 815
Score of dealing with construction permits (0-100) 71.1 Score of protecting minority investors (0-100) 34.0 Time to export
Procedures (number) 14 Extent of disclosure index (0-10) 6.0 Documentary compliance (hours) 36
Time (days) 121 Extent of director liability index (0-10) 5.0 Border compliance (hours) 24
Cost (% of warehouse value) 1.1 Ease of shareholder suits index (0-10) 6.0 Cost to export
Building quality control index (0-15) 8.0 Extent of shareholder rights index (0-6) 0.0 Documentary compliance (USD) 135
Extent of ownership and control index (0-7) 0.0 Border compliance (USD) 500
Getting Electricity (rank) 109 Extent of corporate transparency index (0-7) 0.0
Score of getting electricity (0-100) 70.4 Enforcing Contracts (rank) 72
Procedures (number) 5 Paying Taxes (rank) 126 Score of enforcing contracts (0-100) 61.6
Time (days) 67 Score of paying taxes (0-100) 64.1 Time (days) 606
Cost (% of income per capita) 113.4 Payments (number per year) 19 Cost (% of claim value) 30.0
Reliability of supply and transparency of tariff index (0-8) 3 Time (hours per year) 378 Quality of judicial processes index (0-18) 10.5
Total tax and contribution rate (% of profit) 35.0
Registering Property (rank) 80 Postfiling index (0-100) 46.6 Resolving Insolvency (rank) 105
Score of registering property (0-100) 66.1 Score of resolving insolvency (0-100) 42.1
Procedures (number) 6 Recovery rate (cents on the dollar) 23.0
Time (days) 46 Time (years) 3.9
Cost (% of property value) 1.8 Cost (% of estate) 9.0
Quality of the land administration index (0-30) 12.0 Outcome (0 as piecemeal sale and 1 as going 0
concern)
Strength of insolvency framework index (0-16) 9.5
Page 4Doing Business 2020 Paraguay
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and
formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to
10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of
operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one
company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their
scores for starting a business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate a company To make the data comparable across economies, several assumptions about the business and the
(number) procedures are used. It is assumed that any required information is readily available and that the
entrepreneur will pay no bribes.
• Preregistration (for example, name verification or reservation,
notarization)
The business:
• Registration in the economy’s largest business city -Is a limited liability company (or its legal equivalent). If there is more than one type of limited
• Postregistration (for example, social security registration, liability company in the economy, the limited liability form most common among domestic firms is
company seal) chosen. Information on the most common form is obtained from incorporation lawyers or the
statistical office.
• Obtaining approval from spouse to start a business or to leave
-Operates in the economy’s largest business city. For 11 economies the data are also collected for
the home to register the company
the second largest business city.
• Obtaining any gender specific document for company -Performs general industrial or commercial activities such as the production or sale to the public of
registration and operation or national identification card goods or services. The business does not perform foreign trade activities and does not handle
products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily
Time required to complete each procedure (calendar days)
polluting production processes.
• Does not include time spent gathering information -Does not qualify for investment incentives or any special benefits.
-Is 100% domestically owned.
• Each procedure starts on a separate day (2 procedures cannot -Has five business owners, none of whom is a legal entity. One business owner holds 30% of the
start on the same day)
company shares, two owners have 20% of shares each, and two owners have 15% of shares
• Procedures fully completed online are recorded as ½ day each.
-Is managed by one local director.
• Procedure is considered completed once final document is
received -Has between 10 and 50 employees one month after the commencement of operations, all of them
domestic nationals.
• No prior contact with officials -Has start-up capital of 10 times income per capita.
-Has an estimated turnover of at least 100 times income per capita.
Cost required to complete each procedure (% of income per
-Leases the commercial plant or offices and is not a proprietor of real estate.
capita)
-Has an annual lease for the office space equivalent to one income per capita.
• Official costs only, no bribes -Is in an office space of approximately 929 square meters (10,000 square feet).
-Has a company deed that is 10 pages long.
• No professional fees unless services required by law or
commonly used in practice
The owners:
Paid-in minimum capital (% of income per capita)
-Have reached the legal age of majority and are capable of making decisions as an adult. If there
• Funds deposited in a bank or with third party before registration is no legal age of majority, they are assumed to be 30 years old.
or up to 3 months after incorporation -Are in good health and have no criminal record.
-Are married, the marriage is monogamous and registered with the authorities.
-Where the answer differs according to the legal system applicable to the woman or man in
question (as may be the case in economies where there is legal plurality), the answer used will be
the one that applies to the majority of the population.
Page 5Doing Business 2020 Paraguay
Starting a Business - Paraguay
Standardized Company
Legal form Corporation (Sociedad Anónima or SA)
Paid-in minimum capital requirement No minimum
City Covered Asuncion
Indicator Paraguay Latin America & OECD high Best Regulatory
Caribbean income Performance
Procedure – Men (number) 7 8.1 4.9 1 (2 Economies)
Time – Men (days) 35 28.8 9.2 0.5 (New Zealand)
Cost – Men (% of income per capita) 52.2 31.4 3.0 0.0 (2 Economies)
Procedure – Women (number) 7 8.1 4.9 1 (2 Economies)
Time – Women (days) 35 28.8 9.2 0.5 (New Zealand)
Cost – Women (% of income per capita) 52.2 31.4 3.0 0.0 (2 Economies)
Paid-in min. capital (% of income per capita) 0.0 0.4 7.6 0.0 (120 Economies)
Figure – Starting a Business in Paraguay – Score
64.7 65.3 73.9 100.0
Procedures Time Cost Paid-in min. capital
Figure – Starting a Business in Paraguay and comparator economies – Ranking and Score
DB 2020 Starting a Business Score
0 100
91.4: Chile (Rank: 57)
89.6: Uruguay (Rank: 66)
82.1: Peru (Rank: 133)
80.4: Argentina (Rank: 141)
79.6: Regional Average (Latin America & Caribbean)
76.0: Paraguay (Rank: 160)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of
the scores for each of the component indicators.
Page 6Doing Business 2020 Paraguay
Figure – Starting a Business in Paraguay – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
35 25
30
Cost (% of income per capita)
20
25
Time (days)
15
20
15
10
10
5
5
0 0
1 2 3 4 5 *6 *7
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.
Page 7Doing Business 2020 Paraguay
Details – Starting a Business in Paraguay – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Check the availability of the proposed company name 1 day no charge
Agency : Treasury Attorney Office
Business entrepreneurs must verify the availability of the proposed company name. Despite there
is available an online database, entrepreneurs usually check the availability at the Treasury
Attorney Office.
2 Draft the company deeds, signed by an attorney 5 days 1 - 3% of the paid-in
Agency : Attorney capital stock of the
Because company formation documents must comply with corporate laws and regulations, company
companies customarily resort to legal professionals. Registration and filing of applications (e.g.,
bylaws to the Treasury Attorney Office, to the court, to the registries) must be signed by an
attorney either as the founders’ agent or counsel.
The organization of companies by attorneys acting through powers of attorney is also a common
practice. The fee for this formality is about 1% to 3% of the company’s paid-in capital stock. Article
72 (1) of Law No. 1376/88 establishes the official legal fee for this task.
3 Notarize the company deeds 3 days 0.75% or 2% of the paid-in
Agency : Notary Public capital stock of the
Company deeds must be notarized. The public notary’s fee for notarizing company deeds is company, depending on
established in the Notary’s Fees Law. A licensed attorney usually drafts the bylaws but a licensed the capital
public notary notarizes the deed (the public deed is to be included in the notary’s protocol and
registered at the public registries). Attorneys are not legally authorized to notarize or certify
documents.
4 Obtain the judicial authorization for the company digital books 1 day GRN 28.062 (Judicial
Agency : Commercial Registry (Registro Público de Comercio) authorization of books) +
The article 78 of Commercial Law requires that certification of the company's books the Judicial GRN 35.078 per digital
Authority. Since June 2017, it is possible to use digital books for keeping the accounting records. record book
In order to obtain the judicial authorization, the company must file at the Commercial Registry the
following documents:
i) Application Form No.18;
ii) notification of the accounting system to be used (books or digital records);
iii) copy of the legal representative ID;
iv) copy of the certificate of incorporation and RUC;
v) and payment receipt.
The judicial authority will issue the authorization within the following 45 days, but meanwhile the
company can start formally to operate. If the company will opt for the digital accounting record, it
will receive a confirmation email with a digital signature ("sello digital"). The digital signature must
be stamped in all loose pages of the accounting records.
The company can also keep using the traditional books. They must be submitted to the
Commercial Registry to have all the pages sealed. On the first page, a seal indicates how many
sealed pages the book contains and that it was registered, specifying the court order number, the
date, and the name of the judge who rendered the order.
The company must keep special commercial books at their registered office. The number of books
and the accounting system to be used are left to the merchant’s discretion. At a minimum,
however, a daily record of business transactions (daily record book) must be kept, and an
accounting of current inventory must also be maintained in a separate book (inventory record
book). Other books may be required for certain types of commercial activities according to law.
Accounting books and documentation must be kept by a merchant for 5 years following the date
that the last entry was made. All corresponding business receipts or vouchers must also be kept
and maintained by the merchant during that 5-year time frame, to allow for auditing of the
company’s books or records. Corporate books are required to keep the records of the minutes of
the board of directors and shareholders’ meetings, as well as the labor books pursuant to the
Labor Code and regulations. Books must also be authorized and sealed by each corresponding
agency (corporate, tax, labor, social security).
Page 8Doing Business 2020 Paraguay
5 Register the company at the Single Window (SUACE) 25 days see procedure details
Agency : Single Window (Sistema Unificado de Apertura y Cierre de Empresas - SUACE)
Companies can be registered at each government agency or at SUACE (Sistema Unificado de
Apertura y Cierre de Empresas), the one-stop shop to register a company established in
December 2006 by the Ministry of Industry and Commerce. Through SUACE, founders are able to
comply with the following procedures to register a company with the relevant authorities:
- Submit all documentation at the Single Window at SUACE for revision and approval. Once
approved, the documents are scanned, and the information is uploaded to a single application
form (formulario único). SUACE assigns an identification number that allows the founder to
monitor the registration process through the Web site.
- The bylaws and other company formation documents are submitted to the Treasury Attorney
Office (Abogacía del Tesoro) which reviews them and issues a registration and publication order.
- An application for tax registration is submitted to a delegate of the Ministry of Finance (Ministerio
de Hacienda).
- An application for the taxpayer’s registry number (Registro Único de Contribuyentes, RUC) is
submitted.
- An application for the relevant Municipal licenses and permits (Patente de Comercio, Resolución
y Certificado de Licencia de Habilitación de Establecimiento) is submitted to the Municipality of
Asunción for fee verification and assessment. The Municipality issues the licenses upon
inspecting the site and approving the documentation.
- An application for registration with Social Security Institute (Instituto de Previsión Social) is
submitted.
- An application for registration with the Ministry of Justice and Labor (Ministerio de Justicia y
Trabajo) to start hiring employees is submitted.
The fees are as follows: GRN 39,253 (Commercial Registry fee) + GRN 39,253 (Public Registries
of Legal Entities and Associations) + GRN 62,804 (Special Tax).
The fees for the business license are: 2 stamps of GRN 1000, 1 stamp of GRN300 and 1 sealed
paper of GRN 300.
6 Publication of an extract of the bylaws in the Official Gazette and a newspaper 4 days (simultaneous USD 19 Official Gazette +
Agency : Official Gazette with previous procedure) USD 133 newspaper
The treasury attorney orders the publication of an extract of the bylaws in the Official Gazette and
another newspaper of wide circulation in the market in which the company is located. The extract
is published for 3 consecutive business days.
7 Receive a site inspection from the Municipality to obtain a Business License 2 days (simultaneous see procedure details
Agency : Municipality with procedure 5)
Before conferring the business license, municipal inspectors perform an onsite inspection of the
company’s main office to verify compliance with municipal ordinances.
The fees for obtaining the municipal license are the following:
i) administrative fees for issuing the license: 12 stamps of GRN 300, 4 stamps of GRN 1,000;
ii) report of the company land use: GRN 115,000;
iii) payment for the business license ('patente comercial') for a company with assets between GRN
100,000,001 and GRN 300,000,000: the fee is GRN 273,700 plus 0.2% of the exceed to the
inferior limit;
iv) payment of the municipal license ('licencia municipal') for a company with more than 350
square meters: 0.077604 of the minimum daily salary for each additional square meter from 350;
v) transfer fee for the inspection: 0.099778 of the minimum daily salary.
Takes place simultaneously with previous procedure.
Page 9Doing Business 2020 Paraguay
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications,
requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building
quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional
certification requirements. The most recent round of data collection was completed in May 2019. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction
company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining all necessary
clearances, licenses, permits and certificates
The construction company (BuildCo):
• Submitting all required notifications and receiving all necessary - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest
inspections
business city. For 11 economies the data are also collected for the second largest business city.
• Obtaining utility connections for water and sewerage - Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a
licensed architect and a licensed engineer, both registered with the local association of architects
• Registering and selling the warehouse after its completion
or engineers. BuildCo is not assumed to have any other employees who are technical or licensed
Time required to complete each procedure (calendar days) experts, such as geological or topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse upon its
• Does not include time spent gathering information completion.
• Each procedure starts on a separate day—though procedures
that can be fully completed online are an exception to this rule The warehouse:
• Procedure is considered completed once final document is - Will be used for general storage activities, such as storage of books or stationery.
received - Will have two stories, both above ground, with a total constructed area of approximately 1,300.6
square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be
• No prior contact with officials located on a land plot of approximately 929 square meters (10,000 square feet) that is 100%
owned by BuildCo, and the warehouse is valued at 50 times income per capita.
Cost required to complete each procedure (% of income per
- Will have complete architectural and technical plans prepared by a licensed architect. If
capita)
preparation of the plans requires such steps as obtaining further documentation or getting prior
• Official costs only, no bribes approvals from external agencies, these are counted as procedures.
- Will take 30 weeks to construct (excluding all delays due to administrative and regulatory
Building quality control index (0-15) requirements).
• Quality of building regulations (0-2)
The water and sewerage connections:
• Quality control before construction (0-1)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water
• Quality control during construction (0-3) delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage
• Quality control after construction (0-3) infrastructure, a septic tank in the smallest size available will be installed or built.
- Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow
• Liability and insurance regimes (0-2) of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and
• Professional certifications (0-4) a peak wastewater flow of 1,136 liters (300 gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the year; will be 1
inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.
Page 10Doing Business 2020 Paraguay
Dealing with Construction Permits - Paraguay
Standardized Warehouse
Estimated value of warehouse PYG 1,635,018,313.70
City Covered Asuncion
Indicator Paraguay Latin America & OECD high Best Regulatory
Caribbean income Performance
Procedures (number) 14 15.5 12.7 None in 2018/19
Time (days) 121 191.2 152.3 None in 2018/19
Cost (% of warehouse value) 1.1 3.6 1.5 None in 2018/19
Building quality control index (0-15) 8.0 9.0 11.6 15.0 (6 Economies)
Figure – Dealing with Construction Permits in Paraguay – Score
64.0 72.6 94.5 53.3
Procedures Time Cost Building quality control index
Figure – Dealing with Construction Permits in Paraguay and comparator economies – Ranking and Score
DB 2020 Dealing with Construction Permits Score
0 100
75.9: Chile (Rank: 41)
72.5: Peru (Rank: 65)
71.1: Paraguay (Rank: 75)
63.2: Regional Average (Latin America & Caribbean)
57.5: Uruguay (Rank: 151)
56.4: Argentina (Rank: 155)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores
are the simple average of the scores for each of the component indicators.
Page 11Doing Business 2020 Paraguay
Figure – Dealing with Construction Permits in Paraguay – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
120 0.45
0.4
Cost (% of warehouse value)
100
0.35
80 0.3
Time (days)
0.25
60
0.2
40 0.15
0.1
20
0.05
0 0
1 *2 *3 4 5 6 7 8 9 10 * 11 * 12 13 14
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.
Page 12Doing Business 2020 Paraguay
Figure – Dealing with Construction Permits in Paraguay and comparator economies – Measure of Quality
14 13.0 13.0
12 11.0
Index score
10 9.0 9.0
8.0
8
6
4
2
0
Paraguay Argentina Chile Peru Uruguay Latin
America
&
Caribbean
Details – Dealing with Construction Permits in Paraguay – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain results of geotechnical study / soil test 10 days USD 1,175
Agency : Private licensed company
BuildCo will request a soil test for the structural calculations for the foundation. Contractors ask for
a soil test to ensure that the foundation of the building is solid. The engineer must understand the
suitability of the soil for the proposed construction work. It allows to build a solid foundation and
avoid structures to be damaged or collapsed or leaned. This procedure is required by Ordenanza
Municipal N. 26.04/90.
2 Request and obtain a no-objection certificate (certificado de no interdicción) duly notarized 10 days PYG 162,504
by a public notary
Agency : General Department of Public Registries (Dirección General de los Registros Públicos)
The no-objection certificate ("certificado de no interdicción") is a statement issued by public
registries certifying that an individual (or legal entity) does not have any legal prohibition or
restriction to sell or encumber a property. It is mandatory for all types of construction projects.
3 Obtain results of topographical study 7 days USD 725
Agency : Private licensed company
A topographical study is conducted prior to construction to measure the levels on the specific
terrain. It is a general technical requirement when building a structure of this class. The results of
a topographical study must be presented to the Municipality before obtaining the building permit.
4 Request and obtain calculation basis form and affidavit 1 day no charge
Agency : Municipality
After the certificate of no-objection is issued, BuildCo. can request and obtain calculation basis
form and affidavit.
5 Hold a pre-approval consultation with the Municipality about the project 1 day PYG 611,000
Agency : Municipality
It is common practice in Asuncion to consult with the relevant department at the Municipality over
the project drawings and designs before submitting the documents.
6 Request and obtain building permit 21 days PYG 4,536,513
Agency : Municipality
The application must be accompanied by the following documents:
• The property title
• The identity card of the landowner
• Proof of payment of municipal taxes (sewage service and garbage collection)
• The builder’s identity card and a valid municipal registration or license
• Three sets of plan copies signed by the responsible builder and the owner of the land
• A structural calculation of the concrete structure signed by an engineer and the owner of the land
• The construction work budget signed by the owner and the responsible builder
• Fire prevention maps, if required
The legal time limit is 30 days.
7 Receive inspection by the Municipality 1 day no charge
Agency : Municipality
According to Municipal Regulation No. 26104/90 (Ordenanza Municipal 26104/90):
• All inspections must be carried out within 2 to 5 business days, excluding the day of the request.
The final inspection should be undertaken in a time frame that varies from 15 to 20 days (Article
46).
• If inspections are not carried out within the stated time frames, the applicant is entitled to file a
claim before the relevant municipality. The municipality must then take the necessary steps so that
the inspection is completed within 48 hours (Article 47).
The site is inspected when the building permit application is filed. In practice, however, there is not
much follow-up, and a maximum of two inspections are done throughout the process (the initial
and final inspections).
Page 13Doing Business 2020 Paraguay
8 Request final project approval and final inspection 1 day no charge
Agency : Municipality
The final approval includes the architecture, structure and fire prevention, and use restriction. The
municipal inspector checks the site, after which a final inspection certificate is granted. A final
certificate of inspection is produced and signed by the Director of Works at the Municipality
9 Receive final inspection by municipal authorities 1 day no charge
Agency : Municipality
Once the final approval is issued, BuildCo. can receive the final inspection by municipal
authorities.
10 Obtain final approval (certificado de terminación de trabajos) by municipal authorities 79 days no charge
Agency : Municipality
Upon the final inspection request, BuillCo. receives the final approval certificate.
11 Request and connect to sewage service 15 days PYG 1,195,200
Agency : Essap S.A
Assuming a 0.75 inch water/sewage meter and a PVC pipeline on an asphalt-paved street, the
cost is 40% of the minimum wage + PYG 100,800.00 per ml of branch sewer (average 8 ml).
Request and connect to potable water service 15 days PYG 528,000
12 Agency : Water Company
In parallel with the sewage service, BuildCo. can also request the connection of water services.
13 Register the building with the Treasury Department (Cadastre Office) 4 days PYG 40,000
Agency : Ministerio de Hacienda (Departamento de Catastro)
Once the water connection is done, Buildco is ready to register the warehouse at the Treasury
14 Request and obtain authenticated photocopy of the registration notarized by a public 1 day PYG 81,252
notary
Agency : Escribano Público (Public Notary)
Registration of the warehouse will facilitate its sale and increase its value. This is a commonly
practiced procedure.
Takes place simultaneously with previous procedure.
Page 14Doing Business 2020 Paraguay
Details – Dealing with Construction Permits in Paraguay – Measure of Quality
Answer Score
Building quality control index (0-15) 8.0
Quality of building regulations index (0-2) 1.0
How accessible are building laws and regulations in your economy? (0-1) Available online; Free 1.0
of charge.
Which requirements for obtaining a building permit are clearly specified in the building regulations or on any List of required 0.0
accessible website, brochure or pamphlet? (0-1) documents.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in compliance with existing Licensed architect; 1.0
building regulations? (0-1) Licensed engineer.
Quality control during construction index (0-3) 0.0
What types of inspections (if any) are required by law to be carried out during construction? (0-2) Unscheduled 0.0
inspections.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0
inspections are not
always done in
practice during
construction.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance with the approved Yes, final inspection 2.0
plans and regulations? (0-2) is done by
government agency.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use Architect or engineer; 1.0
(Latent Defect Liability or Decennial Liability)? (0-1) Professional in
charge of the
supervision;
Construction
company; Owner or
investor.
Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or . 0.0
problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1)
Professional certifications index (0-4) 2.0
What are the qualification requirements for the professional responsible for verifying that the architectural plans University degree in 1.0
or drawings are in compliance with existing building regulations? (0-2) architecture or
engineering; Being a
registered architect or
engineer.
What are the qualification requirements for the professional who supervises the construction on the ground? (0- University degree in 1.0
2) engineering,
construction or
construction
management; Being
a registered architect
or engineer.
Page 15Doing Business 2020 Paraguay
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally,
the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data
collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection (number) To make the data comparable across economies, several assumptions about the warehouse, the
electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining all necessary
clearances and permits
The warehouse:
• Completing all required notifications and receiving all necessary - Is owned by a local entrepreneur and is used for storage of goods.
inspections
- Is located in the economy’s largest business city. For 11 economies the data are also collected for
• Obtaining external installation works and possibly purchasing the second largest business city.
material for these works - Is located in an area where similar warehouses are typically located and is in an area with no
physical constraints. For example, the property is not near a railway.
• Concluding any necessary supply contract and obtaining final
- Is a new construction and is being connected to electricity for the first time.
supply
- Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square
Time required to complete each procedure (calendar days) feet). The plot of land on which it is built is 929 square meters (10,000 square feet).
• Is at least 1 calendar day The electricity connection:
• Each procedure starts on a separate day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-
• Does not include time spent gathering information kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).
- Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution
• Reflects the time spent in practice, with little follow-up and no network and is either overhead or underground, whichever is more common in the area where the
prior contact with officials
warehouse is located and requires works that involve the crossing of a 10-meter road (such as by
excavation or overhead lines) but are all carried out on public land. There is no crossing of other
Cost required to complete each procedure (% of income per
owners’ private property because the warehouse has access to a road.
capita)
- Does not require work to install the internal wiring of the warehouse. This has already been
• Official costs only, no bribes completed up to and including the customer’s service panel or switchboard and the meter base.
• Value added tax excluded
The monthly consumption:
The reliability of supply and transparency of tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours
• Duration and frequency of power outages (0–3) a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts
• Tools to monitor power outages (0–1) (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours
(kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.
• Regulatory monitoring of utilities’ performance (0–1) - Tariffs effective in January of the current year are used for calculation of the price of electricity for
the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.
• Financial deterrents limiting outages (0–1)
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial warehouse in case
study
*Note: Doing Business measures the price of electricity, but it is
not included in the ease of doing business score nor in the ranking
on the ease of getting electricity.
Page 16Doing Business 2020 Paraguay
Getting Electricity - Paraguay
Standardized Connection
Name of utility Administracion Nacional de Electricidad (ANDE)
Price of electricity (US cents per kWh) 6.6
City Covered Asuncion
Indicator Paraguay Latin America & OECD high Best Regulatory
Caribbean income Performance
Procedures (number) 5 5.5 4.4 3 (28 Economies)
Time (days) 67 66.8 74.8 18 (3 Economies)
Cost (% of income per capita) 113.4 407.2 61.0 0.0 (3 Economies)
Reliability of supply and transparency of tariff index (0-8) 3 4.4 7.4 8 (26 Economies)
Figure – Getting Electricity in Paraguay – Score
66.7 78.7 98.6 37.5
Reliability of supply and transparency of
Procedures Time Cost
tariff index
Figure – Getting Electricity in Paraguay and comparator economies – Ranking and Score
DB 2020 Getting Electricity Score
0 100
85.7: Chile (Rank: 39)
82.1: Uruguay (Rank: 65)
74.5: Peru (Rank: 88)
71.7: Regional Average (Latin America & Caribbean)
70.4: Paraguay (Rank: 109)
70.0: Argentina (Rank: 111)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the
scores for all the component indicators except the price of electricity.
Figure – Getting Electricity in Paraguay – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
120
60
Cost (% of income per capita)
100
50
80
Time (days)
40
60
30
40
20
10 20
0 0
1 2 *3 4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
Page 17Doing Business 2020 Paraguay
reflected here, see the summary below.
Figure – Getting Electricity in Paraguay and comparator economies – Measure of Quality
8
7
7
6 6
Index score
6
5
5 4.4
4
3
3
2
1
0
Paraguay Argentina Chile Peru Uruguay Latin
America
&
Caribbean
Page 18Doing Business 2020 Paraguay
Details – Getting Electricity in Paraguay – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Request feasibility study by ANDE 25 calendar days PYG 0
Agency : Administracion Nacional de Electricidad (ANDE)
The electrician of the customer first submits a request for a feasibility study with ANDE and awaits
the preparation of an estimate. No site inspection is necessary to prepare the feasibility study. The
electrician has to be registered with ANDE. For connections of electricity loads > 100kVA ANDE
requires that the electrician has to be of a qualification level A or B. 5 different levels exist and A
and B are the highest qualification levels. Level A electricians are electrical engineers with a
university education (ingenieros electricistas). Level B are civil engineer with a university
education (ingenieros civiles) but also some electricians with technical educations but a lot of
practical experience with more sizeable connection works.
2 Submit official service application to ANDE 21 calendar days PYG 5,419,550.54
Agency : Administracion Nacional de Electricidad (ANDE)
Once the feasibility of the project has been established, the electrician submits the official
application which has to include the following documents:
• Application for service signed by the responsible electrician
• Photocopy of the property title (only document that requires notarization)
• Photocopy of the national identification form of the owner of the property.
• Photocopy of the carnet of the responsible electrician.
• Receipt of the payment for the connection.
• Sketch of the location of the property.
• Signature of the owner or his authorized person for the contract.
• Receipt of the transformer purchase.
• Certification of the successful testing of the transformer.
• Certificate specifying the transfer of property of the transformer.
• The results of the feasibility study
• Security Deposit in the amount of one month of future consumption. The deposit is returned
without interest at the end of the contract.
The supply contract is signed at the same time as the application is submitted. A work order is
issued and the customer awaits the connection works. An internal wiring inspection is not
necessary. The utility ensures that the internal wiring of the customer is in order by requesting the
responsible electrician to sign the application for the connection.
3 Receive site inspection by ANDE 14 calendar days PYG 0
Agency : Administracion Nacional de Electricidad (ANDE)
ANDE does an inspection of the client's warehouse to determine how the connection to the
electricity network has to be done.
4 Purchase and install material for connection works 14 calendar days USD 5,500
Agency : Private firm
The electrician buys the transformer and installs it. A direct connection to the low voltage grid is
not possible because the load of 140kVA exceeds the allowed limit of 100kW. ANDE will prefer the
installation of a dedicated transformer because the demand will represent the highest demand in
the area and therefore determine the infrastructure needed. The customer pays for the
transformer but will be reimbursed by ANDE for a total of 50% of the cost via his monthly
consumption bill. The ownership of the transformer is transferred to ANDE.
Actual installation works are not more than one day. The transformer can be bought from
specialized local dealers. They usually have them on stock.
5 Receive transformer inspection, connection works and meter installation by ANDE 7 calendar days PYG 0
Agency : Administracion Nacional de Electricidad (ANDE)
The transformer and meter are installed in the same step and the electricity usually starts flowing
right away. There is no connection fee as such.
Takes place simultaneously with previous procedure.
Page 19Doing Business 2020 Paraguay
Details – Getting Electricity in Paraguay – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 3
Total duration and frequency of outages per customer a year (0-3) 0
System average interruption duration index (SAIDI) 21.9
System average interruption frequency index (SAIFI) 22.8
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 0
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? No
Financial deterrents aimed at limiting outages (0-1) 0
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap? No
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online http://www.ande.gov.py/do
cs/tarifas/PLIEGO21.pdf
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 20Doing Business 2020 Paraguay
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a
building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality
of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access
to property rights. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on immovable property To make the data comparable across economies, several assumptions about the parties to the
(number) transaction, the property and the procedures are used.
• Preregistration procedures (for example, checking for liens, The parties (buyer and seller):
notarizing sales agreement, paying property transfer taxes)
- Are limited liability companies (or the legal equivalent).
• Registration procedures in the economy's largest business city. - Are located in the periurban (that is, on the outskirts of the city but still within its official limits)
• Postregistration procedures (for example, filling title with area of the economy’s largest business city. For 11 economies the data are also collected for the
municipality) second largest business city.
- Are 100% domestically and privately owned.
Time required to complete each procedure (calendar days) - Perform general commercial activities.
• Does not include time spent gathering information
The property (fully owned by the seller):
• Each procedure starts on a separate day - though procedures
- Has a value of 50 times income per capita, which equals the sale price.
that can be fully completed online are an exception to this rule
- Is fully owned by the seller.
• Procedure is considered completed once final document is - Has no mortgages attached and has been under the same ownership for the past 10 years.
received - Is registered in the land registry or cadastre, or both, and is free of title disputes.
• No prior contact with officials - Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its
official limits), and no rezoning is required.
Cost required to complete each procedure (% of property - Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-
value) story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse
is 10 years old, is in good condition, has no heating system and complies with all safety standards,
• Official costs only (such as administrative fees, duties and building codes and legal requirements. The property, consisting of land and building, will be
taxes).
transferred in its entirety.
• Value Added Tax, Capital Gains Tax and illicit payments are - Will not be subject to renovations or additional construction following the purchase.
excluded - Has no trees, natural water sources, natural reserves or historical monuments of any kind.
- Will not be used for special purposes, and no special permits, such as for residential use,
Quality of land administration index (0-30) industrial plants, waste storage or certain types of agricultural activities, are required.
• Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it.
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 21Doing Business 2020 Paraguay
Registering Property - Paraguay
Indicator Paraguay Latin America & OECD high Best Regulatory
Caribbean income Performance
Procedures (number) 6 7.4 4.7 1 (5 Economies)
Time (days) 46 63.7 23.6 1 (2 Economies)
Cost (% of property value) 1.8 5.9 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 12.0 12.0 23.2 None in 2018/19
Figure – Registering Property in Paraguay – Score
58.3 78.5 87.8 40.0
Procedures Time Cost
Quality of the land administration index
Figure – Registering Property in Paraguay and comparator economies – Ranking and Score
DB 2020 Registering Property Score
0 100
72.1: Peru (Rank: 55)
71.1: Chile (Rank: 63)
66.1: Paraguay (Rank: 80)
57.6: Uruguay (Rank: 119)
56.7: Argentina (Rank: 123)
54.9: Regional Average (Latin America & Caribbean)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of
the scores for each of the component indicators.
Page 22Doing Business 2020 Paraguay
Figure – Registering Property in Paraguay – Procedure, Time and Cost
Time (days) Cost (% of property value)
0.8
45
40 0.7
Cost (% of property value)
35 0.6
30
Time (days)
0.5
25
0.4
20
0.3
15
0.2
10
5 0.1
0 0
1 *2 *3 4 5 6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.
Page 23Doing Business 2020 Paraguay
Figure – Registering Property in Paraguay and comparator economies – Measure of Quality
25 22.5
20 18.0
Index score
15 13.5 14.0
12.0 12.0
10
5
0
Paraguay Argentina Chile Peru Uruguay Latin
America
&
Caribbean
Details – Registering Property in Paraguay – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain tax clearance from the Municipality 20 days PYG 162,504; (2
Agency : Municipality "jornales". The value of
The notary obtains a tax clearance certificate regarding the payment of Property Taxes and each jornal is Gs 81.252.)
Special Urban Taxes at the Municipality.
2 Obtain a non-encumbrance certificate ("Certificado de libre gravamen o condiciones de 10 days PYG 325,008; (2 "jornales"
dominio") and a Certificate on Free Disposability of Assets ("Certificado de anotaciones per certificate. 2
personales") certificates are
Agency : Public Registry (Direccion General de los Registros Publicos) required.The value of each
The notary obtains a certificate of Non-encumbrance and a certificate stating that the selling
jornal is Gs 81.252.)
company has no inhibitions to sell the property (Certificate on Free Disposability of Assets) at the
General Direction of Public Registries.
According to law 879/1981, it is mandatory for notaries to obtain a Non-encumbrance Certificate.
The users can download the forms for free on the website of the Judiciary
http://ingresosjudiciales.csj.gov.py/LiquidacionesWeb/formulariosParticulares.seam. The payment
of the certificate can be made online from the Judicial Branch's website through Web Banking.
The non-encumbrance certificate is issued within 10 days.
Since the entry into force of law N° 886/14 of July 29, 2014, the notaries also have the option to
request online the certificate on Free Disposability of Assets through the official website of the
General Direction of Public Registries
http://gestiones.csj.gov.py/AnotacionesPersonales/login.seam. The Certificate on Free
Disposability of Assets could be issued in 24 hours using the online option.
3 Obtain a cadastre certificate 10 days PYG 162,504; (2
Agency : National Service of Cadastre (Servicio nacional de catastro) "jornales". The value of
According to the cadastral law (Law 125/91 "Establishing the New Tax System," Article 64), it is each jornal is Gs 81.252.)
mandatory for the notary to obtain a Certificate of Cadastre (or Zoning Certificate) from the
National Service of Cadastre. Each parcel will require one certificate ("cuenta corriente"). The
notary fees include the cadastral certificate fees and the certification established in the Resolution
of Cadaster SNC 214/2016.
Following the resolution SNC Nª401 of August 14, 2018, notaries can now request cadastral
certificates online accessing the electronic file SNC https://www.catastro.gov.py/servicio-linea/#!/.
For obtaining the cadastral certificate, the notary must fill the online form and upload the
corresponding supporting documents including the Property title, Photocopy of buyer and seller’s
ID and the non-encumbrance certificate. However, the certificate can be requested online only if
the electronic database matches with the required documents and the legal act is loaded in its
database. Most of the time the data do not match, or the legal act is not loaded. Therefore, the
procedure is often carried out in person.
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