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.
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
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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