Countries › Paraguay › Guide › 16. What is normal abroad but not here › Stamped accounting books, a registered accountant and a legal reserve

Stamped accounting books, a registered accountant and a legal reserve

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

Abroad, companies keep ledgers in any software and distribute profits once solvent. In Paraguay, merchants above 1,000 daily minimum wages of capital keep a Journal and an Inventory book stamped by the Public Commerce Registry, kept by a registered accountant, and need court approval for computerised systems. Share companies and S.R.L.s set aside 5 percent of net profit until the reserve reaches 20 percent of capital, and cannot pay dividends until past losses are covered.

USD figures use PYG 5,868.31 per US dollar, the Banco Central del Paraguay reference quotation for 28 October 2026 (planilla de cotizaciones). Conversions are for orientation only.

Key facts

Capital threshold for mandatory accounting books	1000 daily minimum wagesLey 1034/1983 art. 74, as of 1983-12-06 · in force
Minimum annual allocation to legal reserve	5 % of net profitLey 1034/1983 art. 91, as of 1983-12-06 · in force
Legal reserve cap	20 % of subscribed capitalLey 1034/1983 art. 91, as of 1983-12-06 · in force
Retention of accounting books	5 yearsLey 1034/1983 art. 85, as of 1983-12-06 · in force
Minimum daily wage (jornal mínimo) from 1 July 2026	117077 PYGDecreto 6225/2026; Res. MTESS 670/2026, as of 2026-07-01 · in force
BCP reference rate, PYG per US dollar, 28 October 2026	5868.31 PYGBCP planilla de cotizaciones, as of 2026-10-28 · in force

The rule

1. Books and accountant. Every merchant whose capital exceeds 1,000 daily minimum wages must keep orderly accounts, with at least a Journal and an Inventory book, through a registered accountant who is jointly liable for faithful entries. Books must be presented to the Public Commerce Registry with numbered pages to be stamped before use, and be kept in the official language, chronologically, without blanks or erasures.
Cost to do it: Threshold of 1,000 daily minimum wages, PYG 117,077,000 at the July 2026 jornal; professional fees for the accountant.
Example: A trading company with capital above the threshold has its Journal and Inventory book stamped before the first entry. / Threshold about US$19,951.Ley Nº 1034/1983, Del Comerciante (promulgated 6 December 1983, published 16 December 1983), art. 74, 75, 77, 78 and 79, 1983-12-06 official text · verified 2026-10-28

2. Computerised accounts need authorisation. Using mechanical or other modern accounting systems requires judicial authorisation, unless special laws say otherwise, given by reasoned resolution after the opinion of the competent control authority and recorded in the Public Commerce Registry. Journal entries may be global but not cover more than a month.
Cost to do it: Court filing and lawyer time; no fee set in the law.
Example: A subsidiary running a global ERP seeks the authorisation before relying on system printouts as its books. / Not applicable.Ley Nº 1034/1983, art. 76, 1983-12-06 official text · verified 2026-10-28

3. Balance and retention. Every merchant prepares the general balance sheet within the first three months of each year; a fiscal year may not exceed one year. Books are kept for five years from the last entry and vouchers for five years from their date. Share companies also keep a share register recording transfers.
Cost to do it: No fee; storage for five years.
Example: A company with a 31 December year end prepares its balance by 31 March. / Not applicable.Ley Nº 1034/1983, art. 83, 84, 85 and 87, 1983-12-06 official text · verified 2026-10-28

4. Legal reserve and dividends. Share companies and limited liability companies must allocate at least 5 percent of net profit of each year to a legal reserve until it reaches 20 percent of subscribed capital. Dividends may only come from profits actually earned in a balance approved by the competent body, and not until losses of prior years are covered.
Cost to do it: At least 5 percent of net profit retained each year until the cap.
Example: With capital of PYG 500,000,000 the reserve target is PYG 100,000,000; on a net profit of PYG 200,000,000 at least PYG 10,000,000 goes to the reserve. / Target about US$17,041; at least about US$1,704 retained.Ley Nº 1034/1983, art. 89, 91 and 93, 1983-12-06 official text · verified 2026-10-28

Duty	Rule	Article
Who	Capital above 1,000 daily minimum wages	74
Books	Journal and Inventory at least	75
Computer systems	Judicial authorisation	76
Accountant	Registered, jointly liable	77
Stamping	Public Commerce Registry before use	78
Balance	Within 3 months of year start	83
Retention	5 years	85
Legal reserve	5% a year to 20% of capital	91

Bookkeeping duties under Ley 1034/1983

Worked example

A foreign owned S.A. with PYG 500,000,000 (US$85,203) of capital earns PYG 200,000,000 in its first year. It retains at least PYG 10,000,000 as legal reserve, can distribute the rest only after the balance is approved, and must first absorb any prior losses before the next dividend.

Step by step

Have the Journal and Inventory book numbered and stamped at the registry before first use.
Engage a registered accountant.
If using an ERP, seek the judicial authorisation in art. 76.
Approve the balance and allocate the legal reserve before declaring dividends.

Common traps

Treating ERP output as the legal books without authorisation (art. 76).
Declaring dividends while prior losses remain (art. 93).
Forgetting the reserve in group cash planning: 5 percent of profit each year until 20 percent of capital (art. 91).

Sources

← Consumer contracts: no automatic renewal, no forced arbitrationElectronic invoicing replaces pre authorised paper invoices →

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