On January 10th  the known as “Ley de Referencia” (Law 6446/2019) was regulated by Decree 3241, creating an Administrative Register of Legal Entities and Ultimate Beneficial owners of Paraguay. This Act introduces new obligations and charges for the obligated subjects. These are some of the provisions contained in the text.

Who should register?

Obligated Subjects to register and give information to the Implementing Authority (Autoridad de Aplicación) are companies, associations, foundations and, in general, all those legal persons regulated by Paraguayan legislation. This “Autoridad de Aplicación” is a new Agency, under the Ministry of Finance.

Register of Legal Entities

Subjects must inform and record information about their shareholders and the people involved in their administration and control. Likewise, those whose substantive participation of capital belongs wholly or partially to entities resident abroad, must inform and keep updated the information on the ownership of the shares, capital quotas, and powers granted in the country. The deadline for compliance is 9 months starting November 30, 2019.

Register of Ultimate Beneficial Owners

The Subjects must inform to the Authority about data, percentages of participation, final control of the shares related to the Beneficial owner. Likewise, those whose substantive participation of the capital belongs wholly or partially to entities resident abroad, when it is impossible to identify the Final Beneficiary, it will be presumed that the Final Beneficiary is the legal representative of the person or legal structure resident in Paraguay. Deadline: 9 months from November 30, 2019.

The Obliged Subjects must keep their Beneficial owner register updated, as well as keep the documents related to these obligations, available for review, for a period of 5 years.

Additional considerations

Those Subjects of both registers, that are constituted after the entry into force of the Law must communicate, the corresponding data and information, within 45 business days after its constitution.

Failure to comply with the obligations related to the Records entails sanctions; among others, direct fines ranging between 50 and 500 minimum wages or up to 30% of the profits or dividends generated by the Subjects.

The Ministry of Finance will enable an Integrated System that will enable the completion of the procedures required by the Reference Law.

Schedule of register deadlines

Constituted BEFORE Law No. 6446/2019 entered into force

RUC last number

Register deadline

0-3

29/02/2020

4-6

31/03/2020

7-9

30/04/2020

Constituted AFTER Law No. 6446/2019 entered into force

45 (forty-five) working days after it constitution

Information update: 15 working days after the event.

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Carolina Farfán Rojas

Carolina Farfán
Accounting, Compliance & Admin. Services

All information contained in this publication is up to date on 2020. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.