The recent regulatory update that governs Law N\u00b0 4457\/2012, amended by Law N\u00b0 7444\/2025 and developed through Decree N\u00b0 4535\/2025, marks a turning point in the Paraguayan business ecosystem. For the first time, our country has a comprehensive framework that not only promotes the formalization of micro, small, and medium-sized enterprises (MSMEs), but also grants them unprecedented tax, labor, and financial advantages. <\/p>\n\n
Tax Benefits: Tax Relief and Simplified Regime<\/p>\n\n
The package of tax incentives is probably the most attractive point for the sector:<\/p>\n\n
\u2022 Full tax exemption for qualification and registration services provided by Central Government Agencies and decentralized entities, applicable to microenterprises during the first three years after the issuance of the MSME Certificate.<\/p>\n\n
\u2022 Discounts of 75% (micro) and 50% (small) from the fourth year onwards on fees and tariffs for services of the Central Government, decentralized entities, regional governments, and municipalities.<\/p>\n\n
\u2022 Simplified accounting: microenterprises can record their activity through a daily book of income and expenses, eliminating the burden of complex financial statements.<\/p>\n\n
These advantages are activated only when the company is correctly registered in the National MSME Registry (RENAMIPYMES) and keeps its basic obligations up to date with the National Directorate of Tax Revenues (DNIT).<\/p>\n\n
Streamlining Procedures: Digitalization and Single Window<\/p>\n\n
The Unified System for Opening and Closing Companies (SUACE) is consolidated as the central platform that allows:<\/p>\n\n
\u2022 To incorporate, modify, or close companies online, integrating RUC, municipal licenses, and labor records.<\/p>\n\n
\u2022 To interoperate with RENAMIPYMES to generate, at no additional cost, the MSME Certificate \u2014official document that certifies the business category and enables the foreseen benefits\u2014.<\/p>\n\n
By centralizing information in real time \u2014in coordination with the DNIT, Ministry of Labor (MTESS) and Social Security Institute (IPS)\u2014 the terms and costs of formalization are significantly reduced.<\/p>\n\n
Access to Financing and Promotion Programs<\/p>\n\n
Decree N\u00b0 4535\/2025 introduces decisive tools to resolve the historical credit gap:<\/p>\n\n
\u2022 FONAMIPYMES Trust, designed to grant operating capital and productive investment at preferential rates.<\/p>\n\n
\u2022 Promotion of reciprocal guarantee companies, which facilitate endorsements before banks and cooperatives.<\/p>\n\n
\u2022 Incentives for innovation: deductions and co-financing programs for technological or research projects, articulated with CONACYT and MITIC.<\/p>\n\n
Labor Facilities and Social Security<\/p>\n\n
The differentiated labor regime balances worker protection with the reality of emerging ventures:<\/p>\n\n
\u2022 Fixed-term contracts of up to 36 months, with simplified registration procedures.<\/p>\n\n
\u2022 Payment of up to 80% of the legal minimum wage during the first three years for microenterprises, reducing the initial payroll cost.<\/p>\n\n
\u2022 Inclusion of the owner-employer in the health insurance and retirement of the IPS, promoting formality and social coverage.<\/p>\n\n
5. Key points to maximize benefits<\/p>\n\n
\u2022 Correct classification: number of employees and annual turnover determine the category (micro, small or medium) and, therefore, the scope of the incentives.<\/p>\n\n
\u2022 Timely compliance: any tax or labor delinquency automatically suspends the benefits until its regularization.<\/p>\n\n
\u2022 Annual renewal: the MSME Certificate is valid for 12 months and is renewed with the updating of data before RENAMIPYMES.<\/p>\n\n
\u2022 Municipal synergy: the commercial patent may be subject to exemptions or discounts; it is advisable to verify the adhesion of the municipality and the documentary requirements.<\/p>\n\n
\u2022 Training as a lifeline: the regulations allow to replace, for once, certain formal fines through certified courses \u2014an option to avoid economic sanctions\u2014.<\/p>\n\n
How can BKM | BERKEMEYER help you?<\/p>\n\n
Our multidisciplinary team, with leading practice in corporate, financial, tax and labor law, offers comprehensive support that includes:<\/p>\n\n
\u2022 Eligibility diagnosis and corporate structuring to qualify as MSMEs without compromising future expansion plans.<\/p>\n\n
\u2022 Complete management of the SUACE process, registration in RENAMIPYMES and obtaining the MSME Certificate.<\/p>\n\n
\u2022 Negotiation and processing of FONAMIPYMES or private banking credit lines, including guarantee contracts and due diligence.<\/p>\n\n
\u2022 Implementation of labor policies under the special regime: contracts, internal regulations and compliance audits before MTESS and IPS.<\/p>\n\n
\u2022 Advice on public procurement, so that your company can access tenders with preferential treatment.<\/p>\n\n
The MSME Law opens an unprecedented window to reduce costs, access capital and professionalize business management in Paraguay. However, each incentive requires precise steps and times, as well as meticulous legal and fiscal planning. <\/p>\n\n
At BKM | BERKEMEYER we have the experience, legal knowledge and strategic vision necessary for your business to take full advantage of this new scenario.<\/p>\n\n
For more information, please contact: Carla Sosa: carla.sosa@berke.com.py<\/a> and\/or Antonio Villa Berkemeyer: antonio.villa@berke.com.py<\/a> and\/or Luciano Antonelli: luciano.antonelli@berke.com.py<\/a><\/p>\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" The recent regulatory update that governs Law N\u00b0 4457\/2012, amended by Law N\u00b0 7444\/2025 and developed through Decree N\u00b0 4535\/2025, marks a turning point in the Paraguayan business ecosystem. For the first time, our country has a comprehensive framework that not only promotes the formalization of micro, small, and medium-sized enterprises (MSMEs), but also grantsContinue reading “Boosting Competitiveness: New Regulations for MSMEs”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[65],"tags":[],"class_list":["post-6553","post","type-post","status-publish","format-standard","hentry","category-berke-report","entry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/posts\/6553","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/comments?post=6553"}],"version-history":[{"count":3,"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/posts\/6553\/revisions"}],"predecessor-version":[{"id":6562,"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/posts\/6553\/revisions\/6562"}],"wp:attachment":[{"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/media?parent=6553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/categories?post=6553"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/tags?post=6553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}