Economy Profile of Paraguay Highlights Key Business Indicators

Doing Business 2019 Paraguay
Economy Profile
Paraguay
Page 1
Economy Profile of Paraguay
Doing Business 2019 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 post-filing 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
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2
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 labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation 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 reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports 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 report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report 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.
More about Doing Business (PDF, 5MB)
Page 3
Ease of Doing Business in DB 2019 Rank

Region Latin America & Caribbean
190 1
Paraguay
Income Category Upper middle income 113
DB 2019 Ease of doing business score
Population 6,811,297
0 100
City Covered Asuncion 59.40
DB 2019 Ease of Doing Business Score
0 100
71.81: Chile (Rank: 56)
60.01: Brazil (Rank: 109)
59.40: Paraguay (Rank: 113)
58.97: Regional Average (Latin America & Caribbean)
58.80: Argentina (Rank: 119)
50.32: Bolivia (Rank: 156)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Paraguay
28
55
74
79
82 91
Rank
101 103
109
124 127 127
136 140
151
163
190
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
Ease of Doing Business Score on Doing Business topics - Paraguay
100
80 77.47
70.51 70.20
66.12 65.10
63.73
57.92
Score
60
40.00 41.67 41.31

40
20
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
Page 4
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 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the 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 - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a
business or to leave the home to register the also collected for the second largest business city.
company - The entire office space is approximately 929 square meters (10,000 square feet).
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card
- Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2
procedures cannot start on the same day) - Does not qualify for investment incentives or any special benefits.
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final
document is received The owners:
• No prior contact with officials - Have reached the legal age of majority. If there is no legal age of majority, they are
assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per

capita)
• Funds deposited in a bank or with third party

before registration or up to 3 months after
incorporation
Page 5
Starting a Business - Paraguay
Standardized Company
Legal form Corporation (Sociedad Anónima or SA)
Paid-in minimum capital requirement PYG 0
City Covered Asuncion
Indicator Paraguay Latin America OECD high Best Regulatory

& Caribbean income Performance
Procedure – Men (number) 7 8.2 4.9 1 (New Zealand)
Time – Men (days) 35 28.5 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 40.3 37.8 3.1 0.0 (Slovenia)
Procedure – Women (number) 7 8.2 4.9 1 (New Zealand)
Time – Women (days) 35 28.5 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 40.3 37.8 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 0.0 1.5 8.6 0.0 (117 Economies)
Figure – Starting a Business in Paraguay and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
89.08: Chile (Rank: 72)
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 6
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 7
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 : Commercial Registry
Business entrepreneurs must verify the availability of the proposed company name.
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 company
regulations, 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

Agency : Notary Public paid-in capital stock
Company deeds must be notarized. The public notary’s fee for notarizing company deeds of the company,
is established in the Notary’s Fees Law. A licensed attorney usually drafts the bylaws but depending on the
a licensed public notary notarizes the deed (the public deed is to be included in the
capital
notary’s protocol and registered at the public registries). Attorneys are not legally
authorized to notarize or certify documents.
4 Buy and certify the company's books at the Commercial Registry 1 day 22 USD (Books) +
Agency : Commercial Registry (Registro Público de Comercio) USD 6.56
The company's books must be acquired and certified by the Commercial Registry. The (Authorization of
cost to buy these books is approx. USD 22 for hardcover books in any bookstore. The books)+ 0.21 USD
books must be submitted to the Commercial Registry to have all the pages sealed. On the
(Employee
first page, a seal indicates how many sealed pages the book contains and that it was
registration with
registered, specifying the court order number, the date, and the name of the judge who
Ministry of Labor and
rendered the order.
Justice)
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. A special request to use computer forms
instead of books may be filed with the court and the tax authority. 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 8
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 4 days USD 19 Official
newspaper (simultaneous with Gazette + USD 133
Agency : Official Gazette previous procedure) 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 2 days GRN 7,600
License (simultaneous with
Agency : Municipality 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.
Takes place simultaneously with previous procedure.
Page 9
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 2018. See the methodology for more information
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
other employees who are technical or licensed experts, such as geological or
• Registering and selling the warehouse after its
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule
929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials
documentation or getting prior approvals from external agencies, these are counted
Cost required to complete each procedure (% of as procedures.
income per capita) - Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
• Quality control before construction (0-1) no sewerage infrastructure, a septic tank in the smallest size available will be
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - 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 10
Dealing with Construction Permits - Paraguay
Standardized Warehouse
Estimated value of warehouse PYG 1,150,904,822.80

Procedures (number) 14 15.4 12.7 None in 2017/18
Time (days) 121 199.0 153.1 None in 2017/18
Cost (% of warehouse value) 1.6 3.2 1.5 None in 2017/18
Building quality control index (0-15) 8.0 8.9 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Paraguay and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
75.90: Chile (Rank: 33)
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.
Figure – Dealing with Construction Permits in Paraguay – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)

120 0.7
0.6
Cost (% of warehouse value)
100
0.5
80
Time (days)
0.4
60
0.3
40
0.2
20
0.1
0 0
1 *2 *3 4 5 6 7 8 9 10 * 11 * 12 13 14
Procedures (number)
Page 11
Figure – Dealing with Construction Permits in Paraguay and comparator economies – Measure of Quality
15
13.0
11.0
Index score
10 9.0 8.9
8.0
7.0
Paraguay Argentina Bolivia Brazil Chile Latin America & Caribbean
Details – Dealing with Construction Permits in Paraguay – Procedure, Time and Cost
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 10 days PYG 157,010

interdicción) duly notarized 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
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

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.
Page 12
7 Receive inspection by the Municipality 1 day no charge

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).
8 Request final project approval and final inspection 1 day no charge

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

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 79 days no charge

authorities
Upon the final inspection request, BuillCo. receives the final approval certificate.
Request and connect to sewage service 15 days PYG 1,195,200

11 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 1 day PYG 20,000
by a public notary
Agency : Escribano Público (Public Notary)
Registration of the warehouse will facilitate its sale and increase its value. This is a
commonly practiced procedure.
Page 13
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; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 0.0
regulations or on any 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 Licensed 1.0
compliance with existing building regulations? (0-1) architect;
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? Unscheduled 0.0
(0-2) 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 Yes, final 2.0
with the approved plans and regulations? (0-2) inspection 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 Architect or 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
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 . 0.0
structural flaws or 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 University degree 1.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) in architecture or
engineering;
Being a
registered
architect or
engineer.
What are the qualification requirements for the professional who supervises the construction University degree 1.0
on the ground? (0-2) in engineering,
construction or
construction
management;
Being a
registered
architect or
engineer.
Page 14
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 2018. See the methodology
for more information.
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:

all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and
obtaining final supply - Has two stories with a total surface area of approximately 1,300.6 square meters
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
• Does not include time spent gathering kilowatt (kW).
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials
the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
Cost required to complete each procedure (% of carried out on public land. There is no crossing of other owners’ private property
income per capita) because the warehouse has access to a road.
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
• Value added tax excluded switchboard and the meter base.
The reliability of supply and transparency of The monthly consumption:

tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
• Tools to monitor power outages (0–1) there are no electricity cuts (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
• Regulatory monitoring of utilities’ performance supplier.
(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
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• 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 the ranking on the ease of
getting electricity.
Page 15
Getting Electricity - Paraguay
Standardized Connection
Price of electricity (US cents per kWh) 6.5
Name of utility Administracion Nacional de Electricidad (ANDE)

Procedures (number) 5 5.5 4.5 3 (25 Economies)
Time (days) 67 65.5 77.2 18 (3 Economies)
Cost (% of income per capita) 165.5 946.3 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff 3 4.3 7.5 8.0 (27 Economies)
index (0-8)
Figure – Getting Electricity in Paraguay and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
85.67: Chile (Rank: 36)
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.
Page 16
Figure – Getting Electricity in Paraguay – Procedure, Time and Cost
Time (days) Cost (% of income per capita)

160
60
140
Cost (% of income per capita)

50 120
Time (days)
100
40
80
30
60
20
40
10
20
0 0
1 2 *3 4 5
Procedures (number)
Figure – Getting Electricity in Paraguay and comparator economies – Measure of Quality
8
7
7
6 6
6
Index score
5
5 4.3
4
3
3
2
1
0
Page 17
Details – Getting Electricity in Paraguay – Procedure, Time and Cost
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 5,792,661.77

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

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 7 calendar days PYG 0
by 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.
Page 18
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) 30.8
System average interruption frequency index (SAIFI) 27.6
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 No
supply?
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 No
exceed a certain cap?
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/docs/tarifas/PLIE
GO21.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 19
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 2018. See the methodology for more information.
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):

checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
• Each procedure starts on a separate day - 10 years.
though procedures that can be fully completed - Is registered in the land registry or cadastre, or both, and is free of title disputes.
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received
located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
• Official costs only (such as administrative fees, - Has no trees, natural water sources, natural reserves or historical monuments of
duties and taxes). any kind.
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)

• 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 20
Registering Property - Paraguay

Procedures (number) 6 7.2 4.7 1 (4 Economies)
Time (days) 46 63.3 20.1 1 (New Zealand)
Cost (% of property value) 1.8 5.8 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 12.0 11.9 23.0 None in 2017/18
Figure – Registering Property in Paraguay and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
70.90: Chile (Rank: 61)
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.
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)
Page 21
Figure – Registering Property in Paraguay and comparator economies – Measure of Quality
30
25
Index score
20
15 13.5 13.8 14.0

12.0 11.9
10
7.0
5
Details – Registering Property in Paraguay – Procedure, Time and Cost
1 Obtain tax clearance from the Municipality 20 days PYG 157,010; (2

Agency : Municipality "jornales". The value
The notary obtains a tax clearance certificate regarding the payment of Property Taxes of each jornal is Gs
and Special Urban Taxes at the Municipality. 78,505.)
2 Obtain a non-encumbrance certificate ("Certificado de libre gravamen o 10 days PYG 314,020; (2

condiciones de dominio") and a Certificate on Free Disposability of Assets "jornales" per
("Certificado de anotaciones personales") certificate. 2
Agency : Public Registry ("Direccion General de los Registros Publicos") certificates are
The notary obtains a certificate of conditions of ownership (Non-encumbrance
required.)
Certificate) and a certificate stating that the selling 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 in 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.
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 online option applies
only for the Certificate on Free Disposability of Asset, not for the Non-encumbrance
Certificate.
The non-encumbrance certificate is issued within 10 days, and 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 157,010; (2

Agency : National Service of Cadastre ("Servicio nacional de catastro") "jornales". The value
According to the cadastral law (Law 125/91 "Establishing the New Tax System," Article of each jornal is Gs
64), it is mandatory for the notary to obtain a Certificate of Cadastre (or Zoning 78,505.)
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
Page 22
4 Preparation and notarization of the transfer deed by a public notary 10 days PYG 8,631,786.17;
Agency : Public notary (Notary fees
Once all the previous documents have been collected, a notary public prepares and according to the
notarizes the transfer deed. As this is a transfer between two tax-registered companies the following schedule,
notary will not retain the 1.5% VAT on the sale.
(plus 10% VAT):
Value of property (in
The documentation shall include:
Gs) : Notary fees (%
Company’s tax declarations of the previous year on VAT and corporate income
Certificate of conditions of ownership of property value)
Certificate of inhibition of seller - Below 1,000,000: 5
Municipal tax clearance certificate (obtained in Procedure 1) minimum wages
Cadastre Certificate (obtained in Procedure 3) (jornales)
Certificate of payment of water and electricity services - From 1,000,001 to
Photocopy of buyer and seller’s ID 50,000,000: 2.00%
Property title - From 50,000,000 to
75,000,000: 1.75%
- From 75,000,000 to
100,000,000: 1.50%
- From 100,000,000
to 150,000,000:
1.25%
- From 150,000,000
to 200,000,000:
1.00%
- Above 200,000,000:
0.75%
As of 2006, the seller
must also pay 1.5%
of property value as
VAT (5% VAT rate,
applied to 30% of the
value of the property=
1.5% of the value of
the property)
according to art. 7° of
resolution 1421/05,
regulating art. 91° of
law 2421/04.)
5 Payment of the Municipal Tax on transfers 1 day PYG 3,452,714.47;

Agency : Municipality of Asuncion (0.3% of property
The Municipal Tax on transfers is paid (usually by the notary) at the Municipality after price)
the contract has been notarized. In Asuncion, the tax is 0.3% of the property value. In
other cities of the country it is 0.2%. The amount of the tax will be estimated according to
the same principles applied to the Judiciary Fee.
6 Registration of the notarized documents at the Public Registry 15 days PYG 8,548,097.69;
Agency : Public Registry ("Direccion General de los Registros Publicos") (Charges for
The notarized deed is recorded at the Directorate General of Public Records. Court fees administrative
can be paid online at the authorized banks, payment is no longer performed in the expenses, 0.4
Directorate General of Public Records. The documentation shall include:
jornales + 0.74% of
- The testimony or copy of the deed issued by a notary public (obtained in procedure 4);
property value
- Municipal tax compliance certificate issued by the Municipality of Asuncion.
(registration fee))
Payment of fees can be done online through Web Banking at the Judicial Branch's
website: http://ingresosjudiciales.csj.gov.py/LiquidacionesWeb/home.seam
Page 23
Details – Registering Property in Paraguay – Measure of Quality
Answer Score
Reliability of infrastructure index (0-8) 3.0
What is the institution in charge of immovable property registration? Dirección

General de los
Registros
Publicos
In what format are the majority of title or deed records kept in the largest business city—in a Paper 0.0
paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions No 0.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Dirección
Nacional de
Catastro
In what format are the majority of maps of land plots kept in the largest business city—in a Computer/Fully 2.0
paper format or in a computerized format (scanned or fully digital)? digital
Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral Separate 0.0
or mapping agency kept in a single database, in different but linked databases or in separate databases
databases?
Do the immovable property registration agency and cadastral or mapping agency use the No 0.0
same identification number for properties?
Transparency of information index (0–6) 1.0
Who is able to obtain information on land ownership at the agency in charge of immovable Only 0.0
property registration in the largest business city? intermediaries
and interested
parties
Is the list of documents that are required to complete any type of property transaction made No 0.0
publicly available–and if so, how?
Link for online access:
Is the applicable fee schedule for any property transaction at the agency in charge of No 0.0
immovable property registration in the largest business city made publicly available–and if
so, how?
Does the agency in charge of immovable property registration commit to delivering a legally No 0.0
binding document that proves property ownership within a specific time frame–and if so, how
does it communicate the service standard?
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?
Contact information:
Are there publicly available official statistics tracking the number of transactions at the No 0.0
immovable property registration agency?
Number of property transfers in the largest business city in 2017:
Who is able to consult maps of land plots in the largest business city? Anyone who 0.5
pays the official
fee
Is the applicable fee schedule for accessing maps of land plots made publicly available— Yes, online 0.5
and if so, how?
Page 24
Link for online access: http://www.catast

ro.gov.py/archivo
s/costos%20y%2
0requisitos/costo
s/RES%20SNC%
20N%C2%BA%2
0214-16.-
%20POR%20LA
%20CUAL%20S
E%20DISPONE
%20NUEVA%20
ESCALA%20AR
ANCELES%2020
16.-.pdf
Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0
specific time frame—and if so, how does it communicate the service standard?
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the cadastral or mapping agency?
Contact information:
Geographic coverage index (0–8) 2.0
Are all privately held land plots in the economy formally registered at the immovable property No 0.0
registry?
Are all privately held land plots in the largest business city formally registered at the No 0.0
immovable property registry?
Are all privately held land plots in the economy mapped? No 0.0
Are all privately held land plots in the largest business city mapped? Yes 2.0
Land dispute resolution index (0–8) 6.0
Does the law require that all property sale transactions be registered at the immovable Yes 1.5
property registry to make them opposable to third parties?
Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
Is there a specific compensation mechanism to cover for losses incurred by parties who No 0.0
engaged in good faith in a property transaction based on erroneous information certified by
the immovable property registry?
Does the legal system require a control of legality of the documents necessary for a property Yes 0.5
transaction (e.g., checking the compliance of contracts with requirements of the law)?
If yes, who is responsible for checking the legality of the documents? Notary;
Does the legal system require verification of the identity of the parties to a property Yes 0.5
transaction?
If yes, who is responsible for verifying the identity of the parties? Notary;
Is there a national database to verify the accuracy of identity documents? Yes 1.0
For a standard land dispute between two local businesses over tenure rights of a property Juzgado de
worth 50 times gross national income (GNI) per capita and located in the largest business Primera Instancia
city, what court would be in charge of the case in the first instance? en lo Civil y
Comercial
How long does it take on average to obtain a decision from the first-instance court for such a Between 1 and 2 2.0
case (without appeal)? years
Are there any statistics on the number of land disputes in the first instance? No 0.0
Number of land disputes in the largest business city in 2017:
Equal access to property rights index (-2–0) 0.0
Do unmarried men and unmarried women have equal ownership rights to property? Yes
Do married men and married women have equal ownership rights to property? Yes 0.0
Page 25
Getting Credit
This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in
facilitating lending. The most recent round of data collection for the project was completed in May 2018. See the methodology for more
information.
Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of
borrowers and lenders with respect to secured transactions through 2 sets of
• Rights of borrowers and lenders through indicators. The depth of credit information index measures rules and practices
collateral laws (0-10)
affecting the coverage, scope and accessibility of credit information available
• Protection of secured creditors’ rights through through a credit registry or a credit bureau. The strength of legal rights index
bankruptcy laws (0-2) measures the degree to which collateral and bankruptcy laws protect the rights of
borrowers and lenders and thus facilitate lending. For each economy it is first
Depth of credit information index (0–8) determined whether a unitary secured transactions system exists. Then two case
• Scope and accessibility of credit information scenarios, case A and case B, are used to determine how a nonpossessory security
distributed by credit bureaus and credit registries interest is created, publicized and enforced according to the law. Special emphasis
(0-8) is given to how the collateral registry operates (if registration of security interests is
possible). The case scenarios involve a secured borrower, company ABC, and a
Credit bureau coverage (% of adults) secured lender, BizBank.
• Number of individuals and firms listed in largest In some economies the legal framework for secured transactions will allow only case
credit bureau as a percentage of adult population
A or case B (not both) to apply. Both cases examine the same set of legal provisions
Credit registry coverage (% of adults) relating to the use of movable collateral.
• Number of individuals and firms listed in credit Several assumptions about the secured borrower (ABC) and lender (BizBank)
registry as a percentage of adult population are used:
- ABC is a domestic limited liability company (or its legal equivalent).

- ABC has up to 50 employees.
- ABC has its headquarters and only base of operations in the economy’s largest
business city. For 11 economies the data are also collected for the second largest
business city.
- Both ABC and BizBank are 100% domestically owned.
The case scenarios also involve assumptions. In case A, as collateral for the loan,
ABC grants BizBank a nonpossessory security interest in one category of movable
assets, for example, its machinery or its inventory. ABC wants to keep both
possession and ownership of the collateral. In economies where the law does not
allow nonpossessory security interests in movable property, ABC and BizBank use a
fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory
security interests).
In case B, ABC grants BizBank a business charge, enterprise charge, floating

charge or any charge that gives BizBank a security interest over ABC’s combined
movable assets (or as much of ABC’s movable assets as possible). ABC keeps
ownership and possession of the assets.
Page 26
Getting Credit - Paraguay

Strength of legal rights index (0-12) 1 5.4 6.1 12 (5 Economies)
Depth of credit information index (0-8) 7 4.9 6.7 8 (42 Economies)
Credit registry coverage (% of adults) 24.4 14.6 21.8 100.0 (4 Economies)
Credit bureau coverage (% of adults) 24.5 44.5 65.3 100.0 (25 Economies)
Figure – Getting Credit in Paraguay and comparator economies – Ranking and Score
DB 2019 Getting Credit Score
0 100
55.00: Chile (Rank: 85)
Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the
sum of the scores for the strength of legal rights index and the depth of credit information index.
Figure – Legal Rights in Paraguay and comparator economies
8
7
6 5.4
Index Score
5
4
4
3
3
2
2
1
1
0
0
Page 27
Details – Legal Rights in Paraguay
Strength of legal rights index (0-12) 1
Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and No
enforcement of functional equivalents to security interests in movable assets exist in the economy?
Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No
requiring a specific description of collateral?
Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a No
specific description of collateral?
May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds and No
replacements of the original assets?
Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be Yes
secured between parties; and can the collateral agreement include a maximum amount for which the assets are
encumbered?
Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by No
asset type, with an electronic database indexed by debtor's name?
Does a notice-based collateral registry exist in which all functional equivalents can be registered? No
Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed No
online by any interested third party?
Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No
procedure?
Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated? No
Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization No
procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and sets a time
limit for it?
Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow No
the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep
the asset in satisfaction of the debt?
Figure – Credit Information in Paraguay and comparator economies
8 8
8
7 7 7
7
6
Index Score
4.9
5
4
3
2
1
0
Page 28
Details – Credit Information in Paraguay
Depth of credit information index (0-8) Credit Credit Score

bureau registry
Are data on both firms and individuals distributed? Yes Yes 1
Are both positive and negative credit data distributed? Yes No 1
Are data from retailers or utility companies - in addition to data from banks and Yes No 1
financial institutions - distributed?
Are at least 2 years of historical data distributed? (Credit bureaus and registries No No 0
that distribute more than 10 years of negative data or erase data on defaults as
soon as they are repaid obtain a score of 0 for this component.)
Are data on loan amounts below 1% of income per capita distributed? Yes Yes 1
By law, do borrowers have the right to access their data in the credit bureau or Yes Yes 1
credit registry?
Can banks and financial institutions access borrowers’ credit information online Yes Yes 1
(for example, through an online platform, a system-to-system connection or
both)?
Are bureau or registry credit scores offered as a value-added service to help Yes No 1
banks and financial institutions assess the creditworthiness of borrowers?
Total Score ("yes" to either public bureau or private registry) 7
Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or
covers less than 5% of the adult population, the total score on the depth of credit information index is 0.
Coverage Credit bureau Credit registry
Number of individuals 1,038,302 1,054,577
Number of firms 32,784 12,960
Total 1,071,086 1,067,537
Percentage of adult population 24.5 24.4
Page 29
Protecting Minority Investors
This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain
as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most
recent round of data collection for the project was completed in May 2018. See the methodology for more information.
• Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several
approval requirements for related-party
assumptions about the business and the transaction.
transactions; Disclosure requirements for related-
party transactions
The business (Buyer):
• Extent of director liability index (0–10): Ability - Is a publicly traded corporation listed on the economy’s most important stock
of minority shareholders to sue and hold exchange. If there are fewer than ten listed companies or if there is no stock
interested directors liable for prejudicial related- exchange in the economy, it is assumed that Buyer is a large private company with
party transactions; Available legal remedies multiple shareholders.
(damages, disgorgement of profits, fines, - Has a board of directors and a chief executive officer (CEO) who may legally act on
imprisonment, rescission of the transaction) behalf of Buyer where permitted, even if this is not specifically required by law.
• Ease of shareholder suits index (0–10): - Has a supervisory board in economies with a two-tier board system on which Mr.
Access to internal corporate documents; James appointed 60% of the shareholder-elected members.
Evidence obtainable during trial and allocation of - Has not adopted bylaws or articles of association that go beyond the minimum
legal expenses requirements. Does not follow codes, principles, recommendations or guidelines that
are not mandatory.
• Extent of conflict of interest regulation index
- Is a manufacturing company with its own distribution network.
(0–10): Simple average of the extent of
disclosure, extent of director liability and ease of
The transaction involves the following details:
shareholder indices
- Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two
• Extent of shareholder rights index (0-10): directors to Buyer’s five-member board.
Shareholders’ rights and role in major corporate - Mr. James also owns 90% of Seller, a company that operates a chain of retail
decisions hardware stores. Seller recently closed a large number of its stores.
• Extent of ownership and control index (0-10): - Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand
Governance safeguards protecting shareholders Buyer’s distribution of its food products, a proposal to which Buyer agrees. The price
from undue board control and entrenchment is equal to 10% of Buyer’s assets and is higher than the market value.
- The proposed transaction is part of the company’s principal activity and is not
• Extent of corporate transparency index (0-10): outside the authority of the company.
Corporate transparency on ownership stakes,
- Buyer enters into the transaction. All required approvals are obtained, and all
compensation, audits and financial prospects
required disclosures made—that is, the transaction was not entered into fraudulently.
• Extent of shareholder governance index (0– - The transaction causes damages to Buyer. Shareholders sue Mr. James and the
10): Simple average of the extent of shareholders executives and directors that approved the transaction.
rights, extent of ownership and control and extent
of corporate transparency indices
• Strength of minority investor protection index

(0–10): Simple average of the extent of conflict of
interest regulation and extent of shareholder
governance indices
Page 30
Protecting Minority Investors - Paraguay

Extent of disclosure index (0-10) 6.0 4.1 6.5 10 (13 Economies)
Extent of director liability index (0-10) 5.0 5.2 5.3 10 (Cambodia)
Ease of shareholder suits index (0-10) 6.0 6.7 7.3 10 (Djibouti)
Extent of shareholder rights index (0-10) 3.0 5.4 6.4 10 (Kazakhstan)
Extent of ownership and control index (0-10) 3.0 3.2 5.4 None in 2017/18
Extent of corporate transparency index (0-10) 2.0 3.9 7.6 10 (6 Economies)
Figure – Protecting Minority Investors in Paraguay and comparator economies – Ranking and Score
DB 2019 Protecting Minority Investors Score
0 100
60.00: Chile (Rank: 64)
Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority
investors. These scores are the simple average of the scores for the extent of conflict of interest regulation index and the extent of
shareholder governance index.
Figure – Protecting Minority Investors in Paraguay and comparator economies – Measure of Quality
Paraguay 2 5 6 3 3 6
Argentina 7 2 7 7 8 6
Bolivia 4 5 1 2 6 6
Brazil 9 8 5 6 7 4
Chile 2 6 8 4 9 7
OECD high income 7.4 5.5 6.5 5.2 6.3 7.4
Latin America & Caribbean 4.2 5.4 4.4 3.5 5.6 6.5
0 5 10 15 20 25 30 35 40 45
Sub-Indicator Score
Extent of corporate transparency index (0-10) Extent of director liability index (0-10) Extent of disclosure index (0-10)
Extent of ownership and control index (0-10) Extent of shareholder rights index (0-10) Ease of shareholder suits index (0-10)
Page 31
Details – Protecting Minority Investors in Paraguay – Measure of Quality
Answer Score
Extent of conflict of interest regulation index (0-10) 5.7
Extent of disclosure index (0-10) 6.0
Whose decision is sufficient to approve the Buyer-Seller transaction? (0-3) Board of 2.0
directors
excluding
interested
members
Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0
Must Mr. James disclose his conflict of interest to the board of directors? (0-2) Existence of a 1.0
conflict without
any specifics
Must Buyer disclose the transaction in periodic filings (e.g. annual reports)? (0-2) Disclosure on the 2.0
transaction and
on the conflict of
interest
Must Buyer immediately disclose the transaction to the public? (0-2) Disclosure on the 1.0
transaction only
Extent of director liability index (0-10) 5.0
Can shareholders representing 10% of Buyer's share capital sue for the damage the No 0.0
transaction caused to Buyer? (0-1)
Can shareholders hold Mr. James liable for the damage the transaction caused to Buyer? (0- Liable if negligent 1.0
2)
Can shareholders hold the other directors liable for the damage the transaction caused to Liable if negligent 1.0
Buyer (0-2)
Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0
shareholders? (0-1)
Must Mr. James repay profits made from the transaction upon a successful claim by No 0.0
shareholders? (0-1)
Is Mr. James disqualified upon a successful claim by shareholders? (0-1) Yes 1.0
Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if 1.0
negligently
concluded
Ease of shareholder suits index (0-10) 6.0
Before suing, can shareholders representing 10% of Buyer's share capital inspect the No 0.0
transaction documents? (0-1)
Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0
document
Can the plaintiff request categories of documents from the defendant without identifying No 0.0
specific ones? (0-1)
Can the plaintiff directly question the defendant and witnesses at trial? (0-2) Yes 2.0
Is the level of proof required for civil suits lower than that of criminal cases? (0-1) No 0.0
Can shareholder plaintiffs recover their legal expenses from the company? (0-2) Yes if successful 1.0
Extent of shareholder governance index (0-10) 2.7
Extent of shareholder rights index (0-10) 3.0
Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0
Can shareholders representing 10% of Buyer's share capital call for a meeting of No 0.0
shareholders?
Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0
Page 32
Do shareholders automatically receive preemption rights every time Buyer issues new No 0.0
shares?
Must shareholders approve the election and dismissal of the external auditor? No 0.0
Are changes to the rights of a class of shares only possible if the holders of the affected Yes 1.0
shares approve?
Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0
member approval?
Assuming that Buyer is a limited company, can members representing 10% call for a No 0.0
meeting of members?
Assuming that Buyer is a limited company, must all or almost all members consent to add a Yes 1.0
new member?
Assuming that Buyer is a limited company, must a member first offer to sell their interest to No 0.0
the existing members before they can sell to non-members?
Extent of ownership and control index (0-10) 3.0
Is it forbidden to appoint the same individual as CEO and chairperson of the board of No 0.0
directors?
Must the board of directors include independent and nonexecutive board members? Yes 1.0
Can shareholders remove members of the board of directors without cause before the end Yes 1.0
of their term?
Must the board of directors include a separate audit committee exclusively comprising board No 0.0
members?
Must a potential acquirer make a tender offer to all shareholders upon acquiring 50% of No 0.0
Buyer?
Must Buyer pay declared dividends within a maximum period set by law? No 0.0
Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0
Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve Yes 1.0
disagreements among members?
Assuming that Buyer is a limited company, must a potential acquirer make a tender offer to No 0.0
all shareholders upon acquiring 50% of Buyer?
Assuming that Buyer is a limited company, must Buyer distribute profits within a maximum No 0.0
period set by law?
Extent of corporate transparency index (0-10) 2.0
Must Buyer disclose direct and indirect beneficial ownership stakes representing 5%? No 0.0
Must Buyer disclose information about board members’ primary employment and No 0.0
directorships in other companies?
Must Buyer disclose the compensation of individual managers? No 0.0
Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0
Can shareholders representing 5% of Buyer’s share capital put items on the general meeting Yes 1.0
agenda?
Must Buyer's annual financial statements be audited by an external auditor? No 0.0
Must Buyer disclose its audit reports to the public? No 0.0
Assuming that Buyer is a limited company, must members meet at least once a year? No 0.0
Assuming that Buyer is a limited company, can members representing 5% put items on the Yes 1.0
meeting agenda?
Assuming that Buyer is a limited company, must Buyer's annual financial statements be No 0.0
audited by an external auditor?
Page 33
Paying Taxes
This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the
administrative burden of paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent
round of data collection for the project was completed in May 2018 covering for the Paying Taxes indicator calendar year 2017 (January 1,
2017 – December 31, 2017). See the methodology for more information.
Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory contributions a
2017 (number per year adjusted for electronic medium size company must pay in a year, and measures the administrative burden
and joint filing and payment) of paying taxes, contributions and dealing with postfiling processes. Information is
also compiled on frequency of filing and payments, time taken to comply with tax
• Total number of taxes and contributions paid or laws, time taken to comply with the requirements of postfiling processes and time
withheld, including consumption taxes (value
waiting.
added tax, sales tax or goods and service tax)
• Method and frequency of filing and payment To make data comparable across economies, several assumptions are used:
- TaxpayerCo is a medium-size business that started operations on January 1, 2016.
Time required to comply with 3 major taxes It produces ceramic flowerpots and sells them at retail. All taxes and contributions
(hours per year) recorded are paid in the second year of operation (calendar year 2017). Taxes and
• Collecting information, computing tax payable mandatory contributions are measured at all levels of government.
• Preparing separate tax accounting books, if The VAT refund process:

required - In June 2017, TaxpayerCo. makes a large capital purchase: the value of the
• Completing tax return, filing with agencies machine is 65 times income per capita of the economy. Sales are equally spread per
month (1,050 times income per capita divided by 12) and cost of goods sold are
• Arranging payment or withholding equally expensed per month (875 times income per capita divided by 12). The
Total tax and contribution rate (% of commercial machinery seller is registered for VAT and excess input VAT incurred in June will be
fully recovered after four consecutive months if the VAT rate is the same for inputs,
profits)
sales and the machine and the tax reporting period is every month. Input VAT will
• Profit or corporate income tax exceed Output VAT in June 2017.
• Social contributions, labor taxes paid by
The corporate income tax audit process:
employer
- An error in calculation of income tax liability (for example, use of incorrect tax
• Property and property transfer taxes depreciation rates, or incorrectly treating an expense as tax deductible) leads to an
• Dividend, capital gains, financial transactions incorrect income tax return and a corporate income tax underpayment. TaxpayerCo.
taxes discovered the error and voluntarily notified the tax authority. The value of the
underpaid income tax liability is 5% of the corporate income tax liability
• Waste collection, vehicle, road and other taxes due. TaxpayerCo. submits corrected information after the deadline for submitting the
annual tax return, but within the tax assessment period.
Postfiling Index
• Time to comply with a VAT refund (hours)

• Time to obtain a VAT refund (weeks)
• Time to comply with a corporate income tax
correction (hours)
• Time to complete a corporate income tax

correction (weeks)
Page 34
Paying Taxes - Paraguay

Payments (number per year) 20 27.1 11.2 3 (Hong Kong SAR,

China)
Time (hours per year) 378 330.0 159.4 49 (Singapore)
Total tax and contribution rate (% of profit) 35.0 46.7 39.8 26.1% (32 Economies)
Postfiling index (0-100) 46.56 47.04 84.41 None in 2017/18
Figure – Paying Taxes in Paraguay and comparator economies – Ranking and Score
DB 2019 Paying Taxes Score
0 100
75.28: Chile (Rank: 76)
Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the
simple average of the scores for each of the component indicators, with a threshold and a nonlinear transformation applied to one of the
component indicators, the total tax and contribution rate. The threshold is defined as the total tax and contribution rate at the 15th percentile
of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a
total tax and contribution rate below this threshold receive the same score as the economy at the threshold.
Figure – Paying Taxes in Paraguay and comparator economies – Measure of Quality
100
80
Index score
60 57.03
47.94 50.00 47.04
46.56
40
20
7.80
0
Page 35
Details – Paying Taxes in Paraguay
Tax or Payments Notes on Time Statutory Tax base Total tax Notes on
mandatory (number) Payments (hours) tax rate and TTCR
contribution contribution
rate (% of
profit)
Employer 12.0 96.0 16.5% gross salaries 18.62

paid - Social
security
contributions
Corporate 1.0 online 138.0 10% taxable profit 9.62

income tax
Municipal 2.0 1% (variable) total assets 5.25

duties
Property tax 1.0 1% property 1.48

value
Stamp duty 1.0 0.00
Employee 0.0 jointly 9% gross salaries 0.00 withheld

paid - Social
security
contributions
Fuel tax 1.0 0.00 small amount
Value added 1.0 online 144.0 10% value added 0.00 not included
tax (VAT)
Vehicle Tax 1.0 0.00 not included
Totals 20 378 35.0
Page 36
Details – Paying Taxes in Paraguay – Tax by Type
Taxes by type Answer
Profit tax (% of profit) 9.6
Labor tax and contributions (% of profit) 18.6
Other taxes (% of profit) 6.7
Page 37
Details – Paying Taxes in Paraguay – Measure of Quality
Answer Score
Postfiling index (0-100) 46.56
VAT refunds
Does VAT exist? Yes
Does a VAT refund process exist per the case study? No
Restrictions on VAT refund process Restricted to

international
traders
Percentage of cases exposed to a VAT audit (%) Not applicable
Is there a mandatory carry forward period? No
Time to comply with VAT refund (hours) No VAT refund 0

per case study
scenario
Time to obtain a VAT refund (weeks) No VAT refund 0

per case study
scenario
Corporate income tax audits
Does corporate income tax exist? Yes
Percentage of cases exposed to a corporate income tax audit (%) 0% - 24%
Time to comply with a corporate income tax correction (hours) 9.0 86.24
Time to complete a corporate income tax correction (weeks) No tax audit per 100
case study
scenario
Notes: Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate
income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.
The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a
corporate income tax correction and time to complete a corporate income tax correction.
N/A = Not applicable.
Page 38
Trading across Borders
Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures
the time and cost (excluding tariffs) associated with three sets of procedures—documentary compliance, border compliance and domestic
transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project
was completed in May 2018. See the methodology for more information.
Documentary compliance To make the data comparable across economies, a few assumptions are made
about the traded goods and the transactions:
• Obtaining, preparing and submitting documents
during transport, clearance, inspections and port
Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 days are
or border handling in origin economy
recorded as 22×24=528 hours). If customs clearance takes 7.5 hours, the data are
• Obtaining, preparing and submitting documents recorded as is. Alternatively, suppose documents are submitted to a customs agency
required by destination economy and any transit at 8:00a.m., are processed overnight and can be picked up at 8:00a.m. the next day.
economies The time for customs clearance would be recorded as 24 hours because the actual
procedure took 24 hours.
• Covers all documents required by law and in
practice, including electronic submissions of
Cost: Insurance cost and informal payments for which no receipt is issued are
information
excluded from the costs recorded. Costs are reported in U.S. dollars. Contributors
Border compliance are asked to convert local currency into U.S. dollars based on the exchange rate
prevailing on the day they answer the questionnaire. Contributors are private sector
• Customs clearance and inspections experts in international trade logistics and are informed about exchange rates.
• Inspections by other agencies (if applied to more
than 20% of shipments) Assumptions of the case study:
- For all 190 economies covered by Doing Business, it is assumed a shipment is in a
• Handling and inspections that take place at the warehouse in the largest business city of the exporting economy and travels to a
economy’s port or border
warehouse in the largest business city of the importing economy.
- It is assumed each economy imports 15 metric tons of containerized auto parts (HS
Domestic transport
8708) from its natural import partner—the economy from which it imports the largest
• Loading or unloading of the shipment at the value (price times quantity) of auto parts. It is assumed each economy exports the
warehouse or port/border product of its comparative advantage (defined by the largest export value) to its
• Transport between warehouse and port/border natural export partner—the economy that is the largest purchaser of this product.
Shipment value is assumed to be $50,000.
• Traffic delays and road police checks while - The mode of transport is the one most widely used for the chosen export or import
shipment is en route product and the trading partner, as is the seaport or land border crossing.
- All electronic information submissions requested by any government agency in
connection with the shipment are considered to be documents obtained, prepared
and submitted during the export or import process.
- A port or border is a place (seaport or land border crossing) where merchandise
can enter or leave an economy.
- Relevant government agencies include customs, port authorities, road police,
border guards, standardization agencies, ministries or departments of agriculture or
industry, national security agencies and any other government authorities.
Page 39
Trading across Borders - Paraguay

Time to export: Border compliance (hours) 120 61.9 12.5 1 (19 Economies)
Cost to export: Border compliance (USD) 815 529.8 139.1 0 (19 Economies)
Time to export: Documentary compliance (hours) 24 52.5 2.4 1 (26 Economies)
Cost to export: Documentary compliance (USD) 120 110.4 35.2 0 (20 Economies)
Time to import: Border compliance (hours) 24 62.6 8.5 0 (25 Economies)
Cost to import: Border compliance (USD) 500 647.2 100.2 0 (28 Economies)
Time to import: Documentary compliance (hours) 36 79.1 3.4 1 (30 Economies)
Cost to import: Documentary compliance (USD) 135 116.3 24.9 0 (30 Economies)
Figure – Trading across Borders in Paraguay and comparator economies – Ranking and Score
DB 2019 Trading Across Borders Score
0 100
80.56: Chile (Rank: 71)
Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These
scores are the simple average of the scores for the time and cost for documentary compliance and border compliance to export and import.
Figure – Trading across Borders in Paraguay – Time and Cost
Time (hours) Cost (USD)

140 815 900
120 800
120
700
Time (hours)
100
Cost (USD)
600
500
80 500
60 400
36 300
40
24 120 24 135 200
20 100
0 0
Export Export Import Import

- - - -
Border Documentary Border Documentary
Compliance Compliance Compliance Compliance
Page 40
Details – Trading across Borders in Paraguay
Characteristics Export Import
Product HS 12 : Oil seeds and oleaginous fruits; HS 8708: Parts and accessories of motor
miscellaneous grains, seeds and fruit; vehicles
industrial or medicinal plants; straw and
fodder
Trade partner Germany Brazil
Border Puerto Pilar port Ciudad del Este border crossing
Distance (km) 370 337
Domestic transport time (hours) 144 6
Domestic transport cost (USD) 1000 800
Details – Trading across Borders in Paraguay – Components of Border Compliance
Time to Complete (hours) Associated Costs (USD)
Export: Clearance and inspections required 48.0 250.0

by customs authorities
Export: Clearance and inspections required 24.0 80.0

by agencies other than customs
Export: Port or border handling 48.0 485.0
Import: Clearance and inspections required 24.0 250.0

by customs authorities
Import: Clearance and inspections required 0.0 0.0

by agencies other than customs
Import: Port or border handling 24.0 250.0
Page 41
Details – Trading across Borders in Paraguay – Trade Documents
Export Import
Phytosanitary Certificate Conocimiento de Transporte Terrestre
Bill of Lading Commercial Invoice
Commercial Invoice Consular Invoice
Packing List Packing List
Customs Export Declaration Customs Import Declaration
Inspection Report Certificate of Origin
Transit Document Inspection Report
Foreign Exchange Authorization Tax Certificate
Terminal Handling Receipts
SOLAS certificate
Page 42
Enforcing Contracts
The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the
quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and
efficiency in the court system. The most recent round of data collection was completed in May 2018. See the methodology for more
information.
Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract between 2
courts (calendar days) domestic businesses. The case study assumes that the court hears an expert on the
quality of the goods in dispute. This distinguishes the case from simple debt
• Time to file and serve the case enforcement.
• Time for trial and to obtain the judgment
To make the data comparable across economies, Doing Business uses several
• Time to enforce the judgment assumptions about the case:
Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller and
courts (% of claim) Buyer), both located in the economy’s largest business city. For 11 economies the
data are also collected for the second largest business city.
• Attorney fees - The buyer orders custom-made goods, then fails to pay alleging that the goods are
• Court fees not of adequate quality.
- The value of the dispute is 200% of the income per capita or the equivalent in local
• Enforcement fees currency of USD 5,000, whichever is greater.
- The seller sues the buyer before the court with jurisdiction over commercial cases
Quality of judicial processes index (0-18)
worth 200% of income per capita or $5,000.
• Court structure and proceedings (-1-5) - The seller requests the pretrial attachment of the defendant’s movable assets to
secure the claim.
• Case management (0-6)
- The dispute on the quality of the goods requires an expert opinion.
• Court automation (0-4) - The judge decides in favor of the seller; there is no appeal.
• Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable
assets.
Page 43
Enforcing Contracts - Paraguay
Standardized Case
Claim value PYG 43,816,375
Court name Asuncion First Instance Civil and Commercial Court

Time (days) 606 768.5 582.4 None in 2017/18
Cost (% of claim value) 30.0 31.4 21.2 None in 2017/18
Quality of judicial processes index (0-18) 8.5 8.5 11.5 None in 2017/18
Figure – Enforcing Contracts in Paraguay and comparator economies – Ranking and Score
DB 2019 Enforcing Contracts Score
0 100
65.79: Chile (Rank: 49)
Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These
scores are the simple average of the scores for each of the component indicators.
Figure – Enforcing Contracts in Paraguay – Time and Cost
Time (days) Cost (% of claim value)

1200 35
Cost (% of claim value)

31.4
995 30.0
1000 30
25.0 25.6
Time (days)
22.5 768.5 25
800 731 22.0 21.2
591 582.4 606 20
600 480 15
400
10
200 5
0 0
Argentina Bolivia Brazil Chile Latin OECD Paraguay

America high
& income
Caribbean
Page 44
Figure – Enforcing Contracts in Paraguay and comparator economies – Measure of Quality
Paraguay 2.5 1.5 1.5 3
Argentina 2 4 1 4.5
Bolivia 2.5 1.5 0 1.5
Brazil 3 3 3 4.1
Chile 1.5 3.5 2 3
OECD high income 2.5 3.1 2.3 3.6
Latin America & Caribbean 2.4 2.1 0.9 3.5
0 2 4 6 8 10 12 14
Sub-Indicator Score
Alternative dispute resolution (0-3) Case management (0-6) Court automation (0-4) Court structure and proceedings (-1-5)
Details – Enforcing Contracts in Paraguay
Indicator
Time (days) 606
Filing and service 30
Trial and judgment 466
Enforcement of judgment 110
Cost (% of claim value) 30.0
Attorney fees 20
Court fees 5.5
Enforcement fees 4.5
Quality of judicial processes index (0-18) 8.5
Court structure and proceedings (-1-5) 3.0
Case management (0-6) 1.5
Court automation (0-4) 1.5
Alternative dispute resolution (0-3) 2.5
Page 45
Details – Enforcing Contracts in Paraguay – Measure of Quality
Answer Score
Quality of judicial processes index (0-18) 8.5
Court structure and proceedings (-1-5) 3.0
1. Is there a court or division of a court dedicated solely to hearing commercial cases? No 0.0
2. Small claims court 1.0
2.a. Is there a small claims court or a fast-track procedure for small claims? Yes
2.b. If yes, is self-representation allowed? No
3. Is pretrial attachment available? Yes 1.0
4. Are new cases assigned randomly to judges? Yes, automatic 1.0
5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0
Case management (0-6) 1.5
1. Time standards 0.5
1.a. Are there laws setting overall time standards for key court events in a civil Yes
case?
1.b. If yes, are the time standards set for at least three court events? Yes
1.c. Are these time standards respected in more than 50% of cases? No
2. Adjournments 0.0
2.a. Does the law regulate the maximum number of adjournments that can be No
granted?
2.b. Are adjournments limited to unforeseen and exceptional circumstances? Yes
2.c. If rules on adjournments exist, are they respected in more than 50% of cases? No
3. Can two of the following four reports be generated about the competent court: (i) time to Yes 1.0
disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single
case progress report?
4. Is a pretrial conference among the case management techniques used before the No 0.0
competent court?
5. Are there any electronic case management tools in place within the competent court for No 0.0
use by judges?
6. Are there any electronic case management tools in place within the competent court for No 0.0
use by lawyers?
Court automation (0-4) 1.5
1. Can the initial complaint be filed electronically through a dedicated platform within the no 0.0
competent court?
2. Is it possible to carry out service of process electronically for claims filed before the No 0.0
competent court?
3. Can court fees be paid electronically within the competent court? Yes 1.0
4. Publication of judgments 0.5
4.a Are judgments rendered in commercial cases at all levels made available to the No
general public through publication in official gazettes, in newspapers or on the
internet or court website?
4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes
court level made available to the general public through publication in official
gazettes, in newspapers or on the internet or court website?
Alternative dispute resolution (0-3) 2.5
1. Arbitration 1.5
Page 46
1.a. Is domestic commercial arbitration governed by a consolidated law or Yes

consolidated chapter or section of the applicable code of civil procedure
encompassing substantially all its aspects?
1.b. Are there any commercial disputes—aside from those that deal with public No
order or public policy—that cannot be submitted to arbitration?
1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes
2. Mediation/Conciliation 1.0
2.a. Is voluntary mediation or conciliation available? Yes
2.b. Are mediation, conciliation or both governed by a consolidated law or Yes

consolidated chapter or section of the applicable code of civil procedure
encompassing substantially all their aspects?
2.c. Are there financial incentives for parties to attempt mediation or conciliation No
(i.e., if mediation or conciliation is successful, a refund of court filing fees, income
tax credits or the like)?
Page 47
Resolving Insolvency
Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to
calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or
debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing
Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist
Intelligence Unit. The most recent round of data collection was completed in May 2018. See the methodology for more information.
Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies,
several assumptions about the business and the case are used:
• Measured in calendar years
• Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 suppliers.
The hotel experiences financial difficulties.
Cost required to recover debt (% of debtor’s - The value of the hotel is 100% of the income per capita or the equivalent in local
estate) currency of USD 200,000, whichever is greater.
- The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s
• Measured as percentage of estate value
real estate. The hotel cannot pay back the loan, but makes enough money to
• Court fees operate otherwise.
• Fees of insolvency administrators
In addition, Doing Business evaluates the quality of legal framework applicable to
• Lawyers’ fees judicial liquidation and reorganization proceedings and the extent to which best
• Assessors’ and auctioneers’ fees insolvency practices have been implemented in each economy covered.
• Other related fees

Outcome
• Whether business continues operating as a going

concern or business assets are sold piecemeal
Recovery rate for creditors
• Measures the cents on the dollar recovered by

secured creditors
• Outcome for the business (survival or not)

determines the maximum value that can be
recovered
• Official costs of the insolvency proceedings are

deducted
• Depreciation of furniture is taken into account

• Present value of debt recovered
Strength of insolvency framework index (0- 16)
• Sum of the scores of four component indices:

• Commencement of proceedings index (0-3)
• Management of debtor’s assets index (0-6)
• Reorganization proceedings index (0-3)
• Creditor participation index (0-4)
Page 48
Resolving Insolvency - Paraguay

Recovery rate (cents on the dollar) 21.6 30.9 70.5 None in 2017/18
Time (years) 3.9 2.9 1.7 0.4 (Ireland)
Cost (% of estate) 9.0 16.8 9.3 1.0 (Norway)
Outcome (0 as piecemeal sale and 1 as going 0 .. .. ..

concern)
Strength of insolvency framework index (0-16) 9.5 7.1 11.9 None in 2017/18
Figure – Resolving Insolvency in Paraguay and comparator economies – Ranking and Score
DB 2019 Resolving Insolvency Score
0 100
59.90: Chile (Rank: 51)
Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These
scores are the simple average of the scores for the recovery rate and the strength of insolvency framework index.
Figure – Resolving Insolvency in Paraguay – Time and Cost
Time (years) Cost (% of estate)

4.5 16.5 16.8 18
4.0 3.9
4 14.5 14.5 16
Cost (% of estate)
3.5 14
Time (years)
12.0 2.9
3 12
2.4 9.3 9.0
2.5 10
2.0
2 1.8 1.7 8
1.5 6
1 4
0.5 2
0 0
Argentina Bolivia Brazil Chile Latin OECD Paraguay

America high
& income
Caribbean
Page 49
Figure – Resolving Insolvency in Paraguay and comparator economies – Measure of Quality
Paraguay 4 2.5 2 1
Argentina 4 2.5 1 2
Bolivia 3 2.5 0 1
Brazil 5.5 2.5 3 2
Chile 4.5 2.5 3 2
OECD high income 5.3 2.8 2.2 1.9
Latin America & Caribbean 3.7 2.4 1.9 0.8
0 2 4 6 8 10 12 14
Sub-Indicator Score
Management of debtor's assets index (0-6) Commencement of proceedings index (0-3) Creditor participation index (0-4)
Reorganization proceedings index (0-3)
Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the
economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”
Figure – Resolving Insolvency in Paraguay and comparator economies – Recovery Rate

Recovery rate(cents on the dollar)
100
80
60
40.8 41.6
40
30.9
21.6 21.5
20 14.6
Page 50
Details – Resolving Insolvency in Paraguay
Indicator Answer Score
Proceeding foreclosure BizBank will have 3 alternatives: i) Start a foreclosure proceeding, or ii) request Mirage’s
insolvency and start a reorganization proceeding, or iii) Mirage or it creditors will request the
company’s insolvency and start a liquidation proceeding. In practice, the BizBank would start
foreclosure proceedings, as reorganization proceedings are rare in Paraguay and banks prefer to
enforce its collateral and get paid through foreclosure procedure. Foreclosure proceedings are not
normally converted into collective insolvency (liquidation or reorganization) proceedings.
Outcome piecemeal sale Having chosen the option of initiating foreclosure proceedings, the hotel will cease operations and
the property (assets) will be sold at public auction (assets will be sold piecemeal). Once the order
for the auction is issued by the Court, a public auctioneer will be in charge of the management of
the debtor’s assets. The public auctioneer is in charge of the sale of such assets and distribute the
proceeds of sale among the creditors according to the priority set forth by law. BizBank as a
secured creditor will have priority with respect to other creditors. There is no possibility for the
company to continue operating after the auction takes place.
Time (in years) 3.9 The foreclosure procedure in in Paraguay will take approximately 4 years from the moment of the
debtor's default until the debt is repaid to the secured creditor. It will take 1.5 years until the
approval to initiate foreclosure is handed down by the Court including all required notifications and
the debtor’s counter-claim. Henceforward, it is important to bear in mind that the debtor will file an
appeal which will add at least an additional year until the appeal is decided. After that, it will take
an additional year for the auction to take place (including the necessary time to appoint an
auctioneer, the scheduling of the auction and the sale of the real estate). It will take around 6
months for the judge to approve the auction, the sale of the estate and the distribution of the
remaining among unsecure creditors.
Cost (% of 9.0 The cost for a foreclosure proceeding will amount to approximately 9% of the value of Mirage’s
estate) estate. The main component of this expenditure would be the attorney’s fees, which would amount
7% of the value of Mirage’s estate). The rest of the cost (2%) is related to judicial and service
fees, and fees related to the public auction.
Recovery rate 21.6

(cents on the
dollar)
Page 51
Details – Resolving Insolvency in Paraguay – Measure of Quality
Answer Score
Strength of insolvency framework index (0-16) 9.5
Commencement of proceedings index (0-3) 2.5
What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may 1.0
file for both
liquidation and
reorganization
Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (b) Yes, but a 0.5
creditor may file
for liquidation
only
What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0
insolvency framework? generally unable
to pay its debts
as they mature
Management of debtor's assets index (0-6) 4.0
Does the insolvency framework allow the continuation of contracts supplying essential goods Yes 1.0
and services to the debtor?
Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0
contracts?
Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
Does the insolvency framework provide for the possibility of the debtor obtaining credit after No 0.0
commencement of insolvency proceedings?
Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0
assigned to post-
commencement
creditors
Reorganization proceedings index (0-3) 1.0
Which creditors vote on the proposed reorganization plan? (c) Other 1.0
Does the insolvency framework require that dissenting creditors in reorganization receive at No 0.0
least as much as what they would obtain in a liquidation?
Are the creditors divided into classes for the purposes of voting on the reorganization plan, No 0.0
does each class vote separately and are creditors in the same class treated equally?
Creditor participation index (0-4) 2.0
Does the insolvency framework require approval by the creditors for selection or No 0.0
appointment of the insolvency representative?
Does the insolvency framework require approval by the creditors for sale of substantial No 0.0
assets of the debtor?
Does the insolvency framework provide that a creditor has the right to request information Yes 1.0
from the insolvency representative?
Does the insolvency framework provide that a creditor has the right to object to decisions Yes 1.0
accepting or rejecting creditors' claims?
Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the
economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”
Page 52
Labor Market Regulation
Doing Business presents detailed data for the labor market regulation indicators on the Doing Business website
(http://www.doingbusiness.org). The report does not present rankings of economies on these indicators or include the topic in the aggregate
ease of doing business score or ranking on the ease of doing business.
The most recent round of data collection was completed in May 2018. See the methodology for more information.
Hiring To make the data comparable across economies, several assumptions about the
(i) whether fixed-term contracts are prohibited for worker and the business are used.
permanent tasks; (ii) maximum cumulative duration
of fixed-term contracts; (iii) length of the The worker:
probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work
experience.
Working hours - Is a full-time employee.
(i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory.
week; (ii) premiums for work: at night, on a weekly
rest day and overtime; (iii) whether there are The business:
restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy).
day and for overtime work; (iv) whether - Operates a supermarket or grocery store in the economy’s largest business city.
nonpregnant and nonnursing women can work For 11 economies the data are also collected for the second largest business city.
same night hours as men; (v) length of paid annual - Has 60 employees.
leave. - Is subject to collective bargaining agreements if such agreements cover more than
50% of the food retail sector and they apply even to firms that are not party to them.
Redundancy rules - Abides by every law and regulation but does not grant workers more benefits than
(i) whether redundancy can be basis for terminating those mandated by law, regulation or (if applicable) collective bargaining
workers; (ii) whether employer needs to notify agreements.
and/or get approval from third party to terminate 1
redundant worker and a group of 9 redundant
workers; (iii) whether law requires employer to
reassign or retrain a worker before making worker
redundant; (iv) whether priority rules apply for
redundancies and reemployment.
Redundancy cost
(i) notice period for redundancy dismissal; (ii)
severance payments due when terminating a
redundant worker.
Job quality
(i) whether law mandates equal remuneration for
work of equal value and nondiscrimination based on
gender in hiring; (ii) whether law mandates paid or
unpaid maternity leave; (iii) length of paid maternity
leave; (iv) whether employees on maternity leave
receive 100% of wages; (v) availability of five fully
paid days of sick leave a year; (vi) eligibility
requirements for unemployment protection.
Page 53
Labor Market Regulation - Paraguay
Details – Labor Market Regulation in Paraguay
Answer
Hiring
Fixed-term contracts prohibited for permanent tasks? Yes
Maximum length of a single fixed-term contract (months) 12.0
Maximum length of fixed-term contracts, including renewals (months) No Limit
Minimum wage applicable to the worker assumed in the case study (US$/month) 347.6
Ratio of minimum wage to value added per worker 0.7
Maximum length of probationary period (months) 1.0
Working hours
Standard workday 8.0
Maximum number of working days per week 6.0
Premium for night work (% of hourly pay) 30.0
Premium for work on weekly rest day (% of hourly pay) 100.0
Premium for overtime work (% of hourly pay) 50.0
Restrictions on night work? Yes
Whether nonpregnant and nonnursing women can work the same night hours as men Yes
Restrictions on weekly holiday? No
Restrictions on overtime work? Yes
Paid annual leave for a worker with 1 year of tenure (working days) 12.0
Paid annual leave for a worker with 5 years of tenure (working days) 18.0
Paid annual leave for a worker with 10 years of tenure (working days) 30.0
Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 20.0
Redundancy rules
Dismissal due to redundancy allowed by law? Yes
Third-party notification if one worker is dismissed? Yes
Third-party approval if one worker is dismissed? Yes
Third-party notification if nine workers are dismissed? Yes
Third-party approval if nine workers are dismissed? Yes
Retraining or reassignment obligation before redundancy? No
Priority rules for redundancies? No
Priority rules for reemployment? Yes
Redundancy cost
Notice period for redundancy dismissal for a worker with 1 year of tenure 7.5
Notice period for redundancy dismissal for a worker with 5 years of tenure 10.0
Notice period for redundancy dismissal for a worker with 10 years of tenure 15.0
Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 10.8
Severance pay for redundancy dismissal for a worker with 1 year of tenure 2.1
Page 54
Severance pay for redundancy dismissal for a worker with 5 years of tenure 10.7
Severance pay for redundancy dismissal for a worker with 10 years of tenure 42.9
Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 18.6
Job quality
Equal remuneration for work of equal value? Yes
Gender nondiscrimination in hiring? No
Paid or unpaid maternity leave mandated by law? Yes
Minimum length of maternity leave (calendar days)? 126.0
Receive 100% of wages on maternity leave? No
Five fully paid days of sick leave a year? Yes
Unemployment protection after one year of employment? No
Minimum contribution period for unemployment protection (months)? n.a.
Page 55
Business Reforms in Paraguay
In the past year, Doing Business observed a peaking of reform activity worldwide. From June 2, 2017, to May 1, 2018, 128 economies
implemented a record 314 regulatory reforms improving the business climate. Reforms inspired by Doing Business have been implemented
by economies in all regions. The following are reforms implemented since Doing Business 2008.
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
DB2019
Getting Electricity: Paraguay increased the reliability of power supply by rolling out a Supervisory Control and Data Acquisition (SCADA)
automatic energy management system for the monitoring of outages.
Trading across Borders: Paraguay reduced the time needed to import by introducing an electronic signature for import customs clearance.
DB2018
Labor Market Regulation: Paraguay increased the mandatory the length of paid maternity leave
DB2017
Getting Credit: Paraguay reduced access to credit information by limiting the distribution of historical data on borrowers.
Trading across Borders: Paraguay made trading across borders easier by introducing a single window for exporting, which reduced the
time required of border and documentary compliance.
DB2014
Paying Taxes: Paraguay made paying taxes easier for companies by making electronic filing and payment mandatory for corporate
income and value added taxes.
DB2012
Dealing with Construction Permits: Paraguay made dealing with construction permits easier by implementing a risk-based approval
system and a single window for obtaining construction permits.
Getting Credit: Paraguay improved its credit information system by establishing an online platform for financial institutions to exchange
information with the public credit registry.
Paying Taxes: Paraguay made paying taxes more burdensome for companies by introducing new tax declarations that must be filed
monthly.
DB2011
Dealing with Construction Permits: Paraguay made dealing with construction permits easier by creating a new administrative structure
and a better tracking system in the municipality of Asunción.
DB2010
Trading across Borders: Paraguay reduced the time required for trading across borders by implementing an electronic single-window
system for exports and improving the risk-based inspection system.
DB2008
Starting a Business: Paraguay reduced the time required for starting a business by creating a one-stop shop and linking multiple agencies
to it.
Page 56
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Economy Profile of Paraguay Highlights Key Business Indicators

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Doing Business 2019 Paraguay

Economy Profile of Paraguay

Doing Business 2019 Indicators

Getting credit Movable collateral laws and credit information systems

About Doing Business

More about Doing Business (PDF, 5MB)

Ease of Doing Business in DB 2019 Rank

City Covered Asuncion 59.40

DB 2019 Ease of Doing Business Score

60.01: Brazil (Rank: 109)

59.40: Paraguay (Rank: 113)

58.97: Regional Average (Latin America & Caribbean)

58.80: Argentina (Rank: 119)

50.32: Bolivia (Rank: 156)

Rankings on Doing Business topics - Paraguay

Ease of Doing Business Score on Doing Business topics - Paraguay

40.00 41.67 41.31

What the indicators measure Case study assumptions

Paid-in minimum capital (% of income per

• Funds deposited in a bank or with third party

Starting a Business - Paraguay

Legal form Corporation (Sociedad Anónima or SA)

Paid-in minimum capital requirement PYG 0

City Covered Asuncion

Indicator Paraguay Latin America OECD high Best Regulatory

Procedure – Men (number) 7 8.2 4.9 1 (New Zealand)

Time – Men (days) 35 28.5 9.3 0.5 (New Zealand)

Procedure – Women (number) 7 8.2 4.9 1 (New Zealand)

Time – Women (days) 35 28.5 9.3 0.5 (New Zealand)

DB 2019 Starting a Business Score

89.08: Chile (Rank: 72)

81.99: Argentina (Rank: 128)

80.23: Brazil (Rank: 140)

79.40: Regional Average (Latin America & Caribbean)

77.47: Paraguay (Rank: 151)

64.33: Bolivia (Rank: 178)

Figure – Starting a Business in Paraguay – Procedure, Time and Cost

Time (days) Cost (% of income per capita)

Cost (% of income per capita)

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

2 Draft the company deeds, signed by an attorney 5 days 1 - 3% of the paid-in

The organization of companies by attorneys acting through powers of attorney is also a

3 Notarize the company deeds 3 days 0.75% or 2% of the

Takes place simultaneously with previous procedure.

Dealing with Construction Permits

What the indicators measure Case study assumptions

Dealing with Construction Permits - Paraguay

Estimated value of warehouse PYG 1,150,904,822.80

City Covered Asuncion

Indicator Paraguay Latin America OECD high Best Regulatory

Procedures (number) 14 15.4 12.7 None in 2017/18

Time (days) 121 199.0 153.1 None in 2017/18

Cost (% of warehouse value) 1.6 3.2 1.5 None in 2017/18

DB 2019 Dealing with Construction Permits Score

75.90: Chile (Rank: 33)

70.51: Paraguay (Rank: 79)

63.48: Regional Average (Latin America & Caribbean)

55.69: Bolivia (Rank: 160)

51.01: Argentina (Rank: 174)

49.86: Brazil (Rank: 175)