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The National Directorate of Intellectual Property (DINAPI) informed that, since November 2018, Resolution DINAPI RG No. 20/2018 is in force, which expands and establishes new requirements for registration in the registry of importers of magnetic and optical media and raw materials.

The receiving office of the documentation will be the Importers Registration Unit -depending on the General Directorate of Enforcement-. The main task of this office is the authorization of prior import license applications for the products described in Decrees No. 603/2003 and No. 4212/2015.

The forms can be downloaded from the website (https://www.dinapi.gov.py/index.php/formularios) in both Word and PDF format.

If you need more information on this or any other intellectual property matter, please do not hesitate to contact Laura Lezcano (llezcano@vouga.com.py).

In the latest risk assessment for the country, recently released by Fitch Ratings, Paraguay's rating was upgraded from “BB” to “BB+”, which represents an important step towards investment grade, starting with a “BBB” rating. These indicators measure a government's ability to service its debt and inform potential investors about the risk involved in investing in a country.

The report highlights the country's economic resilience in the face of the regional situation and the government's fiscal discipline, maintaining the lowest ratio of public debt to Gross Domestic Product (GDP) among all 'BB' countries, with a public debt/GDP ratio of 17%, when the average for other countries is 46%.

Among other positive aspects, it also mentions that Paraguay maintained an economic growth of 4.3% in the last five years, even experiencing the effects of a deep recession in Brazil in 2015-2016, the drop in commodity prices in 2014-2015 and the depreciation of the Argentine peso this year. The rating agency expects the Paraguayan economy to continue to grow favorably over the next two years at a rate of 3.9%.

He also emphasizes that the national economy has diversified with the introduction of new productive sectors from the maquila regime, producing auto parts, garments and others.

As for economic prospects, they remain in the “stable” category.

If you would like to learn more about investment possibilities in Paraguay, please contact

Since the fight against and prevention of corrupt behavior has been an essential premise in the international business community for some time now, we wanted to evaluate the reality in our country and for this purpose we conducted the “Compliance Diagnostic Survey”, which would allow us to know the degree of implementation of compliance programs in national companies. To this end, we surveyed representatives of leading local companies on the main questions related to the subject.

The results and conclusions of the survey are not only encouraging, but also highlight the growing importance that compliance programs are acquiring, demonstrating that complying with the correct rules of the game and maintaining ethical behavior are no longer ancillary issues, but are now fundamental for business development at the local level.

Duly documented policies and procedures, written commitments for the implementation of compliance programs, the existence of Codes of Conduct, compliance processes, and the existence of a due dilligence, The existence of whistleblower channels for reporting suspicious behavior, the figure of compliance officers, risk matrices, training programs and external support to the company's compliance area, are all relevant indicators to know the degree of development that this area is reaching and that we have analyzed to obtain this interesting vision of business conduct at the national level.

If you would like to receive the results and conclusions of the “Diagnostic Compliance Survey”, please contact Rodolfo G. Vouga (rgvouga@vouga.com.py), Rodrigo Fernández de Nestosa (rfernandez@vouga.com.py) or Marta Martínez (mmartinez@vouga.com.py). 

Download Compliance Diagnostic Survey

Bearing in mind that micro, small and medium-sized enterprises (MSMEs) represent 75% of the Gross Domestic Product and employ 70% of the Economically Active Population, the Government decided to take measures to achieve their formalization. The benefits of doing so are several, among them, better tariffs, information and access to training, as well as advice on procedures.

The formalization of a company is achieved in three phases:

1. Obtaining the Single Taxpayer Registry (RUC): it is a free procedure and is obtained in 48 hours at the Undersecretariat of Taxation (SET),
2. Registration with the Ministry of Labor and the Social Security Institute (IPS): the fees are not high and take about 30 days; and
3. Application for the commercial patent to the municipality: this is sometimes the most complicated phase, since the municipalities are autonomous and, therefore, have their own rules, which is something we are still trying to solve.

Despite the benefits, so far only 3,000 of the 230,000 companies registered with RUC have the Mipymes card, and only 50,000 are registered with the IPS and the Ministry of Labor. To improve this situation, the Ministry of Industry and Commerce (MIC) is working to simplify the procedures digitally and reduce fees, which have already been reduced by half.

The formalization of MSMEs will also benefit them within the framework of the Cooperation Agreement on Intellectual Property signed in Rio de Janeiro by the National Director of DINAPI (National Directorate of Intellectual Property) and the President of ASIPI (Inter-American Association of Intellectual Property) on November 23. One of the axes of the agreement is the mutual cooperation for the training of actors in the field, as well as the creation of a pro-bono assistance system for MSMEs duly registered and registered with the Vice Ministry of MSMEs.

In addition, a working group has also been set up with representatives of the private sector to provide technology to MSMEs. The objectives include obtaining the fund for compliance with the law for the promotion of the National Software Industry and the promotion of the zero paper law, also including MSMEs in the digital economy. The massification of electronic government will benefit MSMEs by facilitating real-time access to the data of entrepreneurs' cards in open format and by implementing online procedures and the exchange between institutions involved in the management of this type of companies.

If you would like to know more about formalization and the benefits available to MSMEs, please do not hesitate to contact Marco Colmán (mcolman@vouga.com.py) and Walter David Vera (wvera@vouga.com.py).

The Ministry of Public Works and Communications (MOPC) estimates that the infrastructure projects planned for the next 5 years will require an investment of more than US$ 3.5 billion. The works will be financed partly with own resources, partly through bond issues and loans from multilateral organizations.

The first package of road works -of a package of almost 1,000 kilometers that will generate around 7,000 jobs, in addition to improving connectivity in the most vulnerable areas of the Republic- represents an investment of USD 120 million. The first award certificates, corresponding to 18 sections of work to be executed, have already been delivered. The goal is to award all 943 kilometers by the end of the year. At present, 53 kilometers are under study, 206 kilometers are in the tendering stage and 200 kilometers are in the bid evaluation process.

In addition, the construction of two new bridges with Brazil, financed by Itaipu Binacional, is foreseen. One of the bridges will be at Presidente Franco (Alto Paraná department) and the other will be built in Puerto Murtinho (Paraguayan Chaco). The latter will be part of the section of the bioceanic corridor that will cross the country.

Likewise, the opening of prequalifications and bids for the Commuter Train project will be held. So far there are 10 business groups interested in the project. Ferrocarriles del Paraguay (Fepasa) is already working to relocate the first group of squatters in order to free up the track strip. In addition, work is planned for the restoration of the railroad stations in Asunción, Luque, Bertoni and Yegros, with a combined investment of approximately 3.3 billion guaraníes.

If you would like to know more about participation in public works, please do not hesitate to contact Walter David Vera (wvera@vouga.com.py).

By Resolution MH N°150/2018, issued on November 27 of the current year, the Ministry of Finance decided to suspend the application of sanctions, fines and non-punitive measures derived from Law N° 5895/2017 “Establishing transparency rules in the regime of companies incorporated by shares” and Regulatory Decree N° 9043/2018, until February 17, 2019.

The aforementioned decree establishes the formalities and mechanisms for the execution of the exchange of bearer shares for registered shares, the transfer of shares and the application of fines generated as a consequence of non-compliance with the law. Among the consequences of non-compliance with the new regulations, there are also non-punitive measures such as the blocking of the company's RUC or the suspension of the economic rights of the shareholders.

The application of these measures had been previously suspended by other resolutions of the Ministry. However, the Treasury Attorney's Office and the Undersecretariat of State for Taxation are currently working on the technical adjustments that will allow the payment of fines through the Marangatú system, and require more time to carry out work and tests on such system.

In addition, the significant increase in the number of procedures initiated as from the enactment of the new law and its decree has increased the average number of virtual procedures to around five thousand, and the number of telephone requests has also increased, with more than one thousand calls per day to the Department of Registration and Control of Companies. Consequently, the Ministry of Finance has found it prudent to extend this suspension to allow these institutions to regularize the relevant computer procedures that are overdue.

If you would like to know more about the requirements for joint stock companies, please do not hesitate to contact Perla Alderte (palderete@vouga.com.py) or Marco Colmán (mcolman@vouga.com.py)  

The joint work of the National Cadastre Service (SNC) and the Association of Notaries of Paraguay (CEP) seeks to simplify the structure of cadastral data and facilitate the processing of report requests through the incorporation of technology. The two institutions agreed to expand the topics of the Agreement of Intent for Public-Private Participation (APPP) signed in January 2016 to achieve this.

It is expected to reduce the time required to process files and to remedy cases of discrepancy between the certificates issued by the SNC and those registered with the General Directorate of Public Registries. This will facilitate the exercise of the property owner's ownership rights. It is also expected to reduce in 45 days the analysis of some 75,000 files through coordinated work with other institutions.

The CNS Director also informed that the files cancelled for exceeding the 365-day term in the possession of the appellants may be reentered into the CNS completely free of fees.

The formalization of small and medium-sized enterprises (MSMEs) is one of the government's objectives and, therefore, several actions have been undertaken to promote it. Among these actions, the creation of an inter-institutional round table between the Ministry of Industry and Commerce (MIC), the Undersecretary of State for Taxation (SET) and the Ministry of Labor, Employment and Social Security (MTESS) a few weeks ago stands out. In addition, the MIC's “Paraguay Trabaja Formal” program was launched, which will allow companies to register late without paying the corresponding fine until December 31.

The Vice-Minister of Employment pointed out that 90% of the companies that are registering fall into the category of MSMEs. Notably, 85% of them were in a state of informality. This is largely due to the lack of knowledge and clarity about the requirements needed to form a formal company. For this reason, the working group will consider the amounts and requirements necessary for formalization, in order to make them clearer and more accessible to citizens.

These steps are intended to boost the formalization of MSMEs and promote the creation of decent jobs.

If you have any questions about business start-ups or SMEs, please do not hesitate to contact Rodrigo Fernandez (rfernandez@vouga.com.py) or Marco Colmán (mcolman@vouga.com.py) 

The National Directorate of Intellectual Property (DINAPI) informed that, since November 2018, Resolution DINAPI RG No. 20/2018 is in force, which expands and establishes new requirements for registration in the registry of importers of magnetic and optical media and raw materials.

The receiving office of the documentation will be the Importers Registration Unit -depending on the General Directorate of Enforcement-. The main task of this office is the authorization of prior import license applications for the products described in Decrees No. 603/2003 and No. 4212/2015.

The forms can be downloaded from the website (https://www.dinapi.gov.py/index.php/formularios) in both Word and PDF format.

If you need more information on this or any other Intellectual Property topic, please do not hesitate to contact Laura Lezcano (llezcano@vouga.com.py)

The Procurement Operating Unit (UOC) of the National Directorate of Public Procurement (DNCP) launched the first call for bids whose bidding terms and conditions were generated electronically, as a pilot project. This is the bidding process for the acquisition of computer equipment for the DNCP -published in the portal www.contrataciones.gov.py- and the gradual implementation of this modality in the purchasing processes of the other State entities is foreseen for 2019.

The electronic bidding documents are generated through a system that facilitates their preparation and control by the UOC -which selects the clauses and conditions- and allows the bidder to view the document in PDF format. Likewise, the bidding process has a new functionality that allows bidders to download the Bid Form with the bidding data preloaded. This avoids errors at the time of submission.

A new electronic consultation module is also available, which allows bidders to inquire about a specific bid through the system and receive responses through the same channel. Both the inquiries and their responses will be publicly accessible, and will eliminate delays in intermediate processes and unnecessary paperwork. The electronic consultation module is available for calls for bids issued by the DNCP, and will be extended to all bids at a later date.