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.