ASUNCIÓN, Paraguay – According to a recent announcement by the Paraguayan Ministry of Industry and Commerce (MIC), only 10% of the 450,000 micro, small, and medium-sized enterprises (MiPymes) in Paraguay are officially operating with full legal compliance.

"Of the 450,000 MiPymes registered in Paraguay, only 43,000 meet the essential requirements for legal operation," said Deputy Minister of Small Businesses, Gustavo Giménez, in an interview with Radio Universo 970 AM.

To be recognized as a formal business, MiPymes must meet three basic requirements: obtain a taxpayer identification number (RUC), register with the Ministry of Labor, and register employees with the Social Security Institute (IPS).

The MIC is making various efforts to encourage the formalization of MiPymes. In particular, under the new MiPymes Law, formalization fees are waived for the first three years of business operation, and MiPymes are supported in joining the IPS to receive health insurance and pension benefits. In addition, unnecessary administrative procedures are being eliminated, and an online registration platform is being established to simplify the formalization process.

"It is important to instill in entrepreneurs the perception that formalization is not just an obligation but a benefit," said Deputy Minister Giménez. "The government will support MiPymes to gain more opportunities and achieve sustainable growth through formalization."

According to the MIC report, the Paraguayan MiPymes sector creates approximately 7.6 million jobs and serves as a major driver of the national economy. However, most of these jobs are informal, resulting in workers not properly enjoying labor and social benefits.

Furthermore, 60% of MiPymes do not have bank accounts, excluding them from the formal financial system. This leads them to rely on high-interest informal loans, which hinders their competitiveness and growth.

The Paraguayan government must actively support the formalization of MiPymes, improve financial accessibility, and continue efforts to address informal employment issues. This will help MiPymes establish themselves as key players in Paraguay's economic growth.