Countries › Paraguay › Guide › 4. Entities and setup › Empresa individual de responsabilidad limitada (EIRL) in Paraguay: sole trader with ring fenced capital, minimum capital and registry

Empresa individual de responsabilidad limitada (EIRL) in Paraguay: sole trader with ring fenced capital, minimum capital and registry

Last verified: 2026-10-28 · Status: Stable

The EIRL under Ley 1034/83 lets one individual, never a company, carry on business with a separate, ring fenced capital: liability is limited to the capital assigned unless there is fraud or a breach of the law. It needs a public deed, a newspaper publication five times in 15 days ordered by the judge, registration in the Public Registry of Commerce before trading, and a minimum capital of 2,000 daily minimum wages (PYG 234,154,000, about US$40,041, from 1 July 2026) paid in full at formation. Since the 2020 EAS law a single person can get the same limited liability online with no minimum capital, so the EIRL now matters mainly for existing businesses and for readers comparing options.

USD figures use PYG 5,847.90 per US dollar, the Banco Central del Paraguay reference quotation for 27 October 2026, the latest daily sheet published on the verification date. Amounts set in jornales or minimum wages use the daily minimum wage of PYG 117,077 and the monthly minimum wage of PYG 3,044,000 in force from 1 July 2026 (Resolución MTESS 670/2026). Conversions are for orientation only.

Key facts

Minimum capital of an EIRL (2,000 daily minimum wages)	234154000 PYGLey 1034/83 art. 21; Resolución MTESS 670/2026, as of 2026-10-28 · in force
Minimum capital of an EIRL in daily minimum wages	2000 jornalesLey 1034/83 art. 21, as of 2026-10-28 · in force
Who may form an EIRL	One individual only Ley 1034/83 art. 15, as of 2026-10-28 · in force
EIRL publication before registration	5 times within 15 days Ley 1034/83 art. 19, as of 2026-10-28 · in force
Share of EIRL capital paid at formation	100 %Ley 1034/83 art. 21, as of 2026-10-28 · in force
Loss of declared capital that ends an EIRL	50 %Ley 1034/83 art. 25 e), as of 2026-10-28 · in force

The rule

1. Who may form it and liability. Any individual able to carry on commerce may form an EIRL and assign it a set capital. The assets forming the capital are a separate estate answering for the EIRL's obligations, and the founder's liability is limited to that capital; in case of fraud, deceit or breach of the law's requirements the founder is liable without limit with the rest of their assets. The EIRL is commercial for all legal purposes.
Example: A foreign individual resident in Paraguay can form an EIRL; a foreign company cannot, because only individuals may. / A parent company needs an EAS, S.A., S.R.L. or branch instead.Ley Nº 1034/83 Del Comerciante, Art. 15 and 17, 1983-12-06 official text · verified 2026-10-28

2. Deed, publication and registration. The EIRL must be formed by public deed stating the founder's details, a name that always includes the founder's full name followed by Empresa Individual de Responsabilidad Limitada, the capital and location, the specific purpose, the capital assigned (cash or other assets), the value given to each asset and the manager, who may be the founder or a representative. It cannot start business before registration in the Public Registry of Commerce, for which the judge first orders publication of a summary of the deed in a newspaper of wide circulation five times within 15 days. Books, documents and notices must show the founder's name, the full words Empresa Individual de Responsabilidad Limitada and the capital; breach of this or of the publication rule makes the founder liable without limit.
Cost to do it: Notary deed, newspaper publication five times and court registration fees; amounts are not set in the law.
Example: Name format: Juan Pérez Empresa Individual de Responsabilidad Limitada.Ley Nº 1034/83, Art. 16, 18, 19 and 20, 1983-12-06 official text · verified 2026-10-28

3. Minimum capital, fully paid. The capital cannot be less than the equivalent of 2,000 legal daily minimum wages for unspecified activities in the capital, and must be fully contributed at formation. The judge orders registration of any real estate in the Real Estate Registry and the deposit of cash in a bank account in the EIRL's name. The founder is liable without limit for any overvaluation of non cash assets and for unpaid cash capital.
Cost to do it: Minimum capital PYG 234,154,000 on the PYG 117,077 daily minimum wage in force from 1 July 2026.
Example: 2,000 x PYG 117,077 = PYG 234,154,000. / About US$40,041.Ley Nº 1034/83; Resolución MTESS Nº 670/2026, Ley 1034 art. 21 and 23; daily minimum wage from 1 July 2026, 1983-12-06 official text · verified 2026-10-28

4. Reserve, insolvency and termination. The EIRL must make the legal reserve of at least 5 percent of net profit until it reaches 20 percent of capital. Its bankruptcy does not bankrupt the founder, but limited liability lapses by law if the founder or manager breaches the law or the founding act to the possible prejudice of third parties, or if the bankruptcy is culpable or fraudulent. It ends for the causes in the founding act, the founder's decision (with the same formalities as formation), the founder's death, bankruptcy, or the loss of at least 50 percent of declared capital or a fall below the legal minimum, after which it must be liquidated.
Example: If an EIRL formed with PYG 234,154,000 loses half its capital, it must be wound up.Ley Nº 1034/83, Art. 22, 24, 25 and 91, 1983-12-06 official text · verified 2026-10-28

5. How the MIC compares the EIRL and the EAS. The MIC presentation of the EAS law lists the EIRL as needing a minimum capital of 2,000 jornales, a public deed and publication of notices, allowing only one person, and not allowing sale of the business without liquidating it, while the EAS has no minimum capital, no deed or notices, may have one or more members and can be sold without liquidation.Ley Nº 6480/2020 as presented by the MIC (undated presentation), Comparison table EIRL against EAS, 2020-01-08 official text · verified 2026-10-28

6. Tax treatment. The EIRL law makes it commercial for all purposes, and Ley 6380 lists as IRE taxpayers, besides named company types, private entities and businesses of any nature with or without legal personality not mentioned elsewhere; IRE is 10 percent of net income. Treat the EIRL as an IRE taxpayer and check its IDU position with DNIT, because art. 40 lists one person businesses (empresas unipersonales) and companies but does not name the EIRL.Ley Nº 6380/2019, Art. 2 num. 8, 21 and 40, 2019-09-25 official text · verified 2026-10-28

Point	EIRL	EAS with one shareholder
Who	One individual	One individual or one company
Minimum capital	2,000 daily minimum wages (PYG 234,154,000)	None
Payment	In full at formation	Within 2 years
Document	Public deed	Model bylaws online, private document or deed
Publication	Newspaper, 5 times in 15 days	SUACE website
Registry	Public Registry of Commerce	Ministry registry via SUACE
Sale of the business	Not without liquidation (MIC)	Shares can be sold

EIRL against single shareholder EAS (Ley 1034/83; Ley 6480/2020; MIC; verified 28 October 2026)

Worked example

A resident individual wants limited liability for a trading business. As an EIRL, the minimum capital is PYG 234,154,000 (about US$40,041), paid in full, with cash deposited in the EIRL's bank account by court order.
The deed, five publications in 15 days and registry filing come before any trading.
The same person could form a single shareholder EAS online with no minimum capital and two years to pay, and could later sell its shares; that is why the EAS is usually preferred.

Step by step

Confirm the founder is an individual able to trade and has 2,000 daily minimum wages of capital to commit in full.
Sign the deed with the required name format, assets and valuations, and manager.
Request registration from the judge, publish the summary five times within 15 days and register in the Public Registry of Commerce; deposit cash and register any real estate as ordered.
Obtain the RUC and employer registrations, stamp the books and file beneficial ownership if the registry treats the EIRL as a covered legal structure.
Watch the 50 percent capital loss trigger every year.

Common traps

Trading before registration, or omitting the full name and capital on documents, makes the founder liable without limit (art. 18 and 20).
Overvalued assets or unpaid cash capital make the founder liable without limit for the difference (art. 23).
Losing 50 percent of capital, or falling below the minimum as it is indexed to the daily minimum wage, ends the EIRL (art. 25 e).
The EIRL dies with the founder (art. 25 c) and cannot be sold as such without liquidation according to the MIC, which complicates succession and exit.
The BACN text of Ley 1034 is the 1983 original; check for later amendments before relying on it in a transaction.

Sources

← Branch of a foreign company in Paraguay: Civil Code art. 1197, SUACE filing, registered powers, IRE, IDU on remittances and head office chargesBeneficial ownership, share registers and transfer reporting in Paraguay: Ley 6446 registry, 10 and 25 percent tests, 45 and 15 day deadlines, sanctions →

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