Recently, Decree No. 3988/2020 was issued to regulate Law No. 6480/2020 which created Simplified Joint Stock Companies (EAS). Said Decree establishes the process for opening EAS, registration and recordal procedures, and determining issues such as subscription and integration of capital stock.
The incorporation of this new legal figure in our legislation constitutes an additional option for investments in the country. The innovative aspects of this new tool include the possibility of having a single partner, short time for the establishment of the company, and a broad corporate purpose since it allows the creation of EAS to be engaged in any legal activity.
In this sense, we believe it is pertinent to mention that the procedure for opening an EAS can be carried out entirely via the web, through the SUACE portal and by filling out a single registration form. A pro forma bylaw can be used, or different bylaws, which must be approved. In both cases, speed in the opening process is guaranteed; setting a period of 3 business days in case the pro forma bylaws are used.
Additionally, notice on the approval of the file, and further start of the EAS, will be made via email to the user.
It is important to mention that, for the process of opening, closing, dissolving, liquidating and transforming an EAS, as well as any other modification that affects its structure, an electronic signature or digital signature may be used.
Regarding the limitations, it is important to bear in mind that the shares and other securities issued by the EAS may not be registered or traded at the Stocks and Products Exchange of Asuncion or at any other Stock Exchange entity.
Finally, we mention that Resolutions of the Ministry of Industry and Commerce and the Ministry of Finance that will establish the internal mechanisms to process the first EAS opening files are pending.
It will be a pleasure for the BKM team to assist you through the required legal advice.
For further information, please contact:
Carla Sosa: carla.sosa@berke.com.py
Leyla Apud: leyla.apud@berke.com.py
