Author: dev_

At the beginning of this 2016, the Executive Power has initiated a process of modernization of the procedures prior to the registration of corporations (SA) and limited liability companies (SRL) in the relevant sections of the General Directorate of Public Registries, which must be carried out before the offices of the Department of Registration and Control of Companies of the Treasury Attorney's Office, a dependency of the Ministry of Finance. By virtue of said modernization process, as of July 1, 2016, the procedures for the incorporation of companies in Paraguay will be carried out by electronic file.

To this end, the President of the Republic decided to take advantage of the legal tools contained in Laws No. 4017/10 (on digital signature) and No. 4679/12 (on administrative procedures), issuing Decree No. 4962/16, which was followed by Resolution MH No. 175/16 of the Ministry of Finance and Resolution AT No. 3/16 of the Treasury Attorney's Office. The first two provisions contain authorizations for lower level agencies to implement electronic means in the reengineering of their procedures and to issue a new regulation for the registration and control of SA and SRL.

On the other hand, Resolution AT No. 3/16 established that until June 30 of this year, applications for the incorporation, modification, merger, transformation and dissolution of SA and SRL will be accepted in physical form before the Department of Registration and Control of Companies, and that as of July 1, they may only be processed through the electronic file, for which users of this management system may register as such as of May 2, by accessing www.abogacía.gov.py and following the instructions contained therein.

This Resolution of the Treasury Counsel's Office also contains the new regulations for the registration and control of SA and SRL, which in short does not modify the requirements to be met by the constitutive acts of the referred companies, the documents related to the meetings to be communicated after their realization or the instruments registered in the General Directorate of Public Registries to be submitted to said entity; however, it extends the term for the latter, which from ten (10) working days from the registration became thirty (30).

In the following links you can download Decree No. 4962/16, Resolution MH No. 175/16 and Resolution AT No. 3/16, as well as a comparative table with the differences and similarities that the current regulation for the registration and control of SA and SRL presents with the previous one.

Should you require further information, please do not hesitate to contact us:

Andrés Vera – avera@vouga.com.py or Carlos Vouga – cvouga@vouga.com.py

Note: This publication is intended to provide preliminary information about the subject matter in Paraguay, as well as to cover some practical considerations. It is not a complete information material, and anyone interested in the subject matter should seek specific advice.

Copyright © 2016 by Vouga Abogados. All rights reserved.

The purpose of this article is to provide a practical guide on the procedures for the registration of trademarks in Paraguay.  

The procedure for the registration of trademarks in Paraguay is relatively simple. First of all, it is recommended to perform a trademark availability check, which aims at identifying possible similar trademarks that could have been applied for, in order to determine whether the registration of the trademark is feasible, or if on the contrary, its registration would be unfeasible due to similarities with other trademarks already applied for or granted.

Once the non-existence of similar antecedents to the trademark to be registered has been ascertained, the application for registration shall be prepared and filed before the National Directorate of Intellectual Property - DINAPI. Such application must contain: i) the name of the trademark, ii) the logo (if any), iii) the description of the services or products to be protected, and, iv) the name and domicile of the applicant.

Once the trademark application has been filed with the above mentioned requirements, DINAPI must carry out a formal examination in order to verify that the application meets all the formalities. Once the formal examination has been approved, the trademark application is published.

In turn, the trademark application must be published in a newspaper of circulation in Asunción for a period of three (3) consecutive days. Once the trademark application has been published, and as from the first working day following the last publication, the opposition period begins, which is 60 (sixty) working days.

Within the opposition period, any holder of a granted or pending trademark (if its application is earlier) may oppose the application for registration in writing, for duly grounded reasons, such as trademark similarity or others.

If there are no oppositions within the established term, DINAPI will carry out a substantive examination of the trademark application. The purpose of such examination is to verify that the trademark application does not fall under any of the prohibitions, such as generic signs or a trademark identical or very similar to another that may cause confusion in the consumer.

If the substantive examination by DINAPI is approved, the Director of DINAPI will proceed to grant the registration of the trademark.

The whole process takes approximately 9 to 12 months on average, if there are no inconveniences such as oppositions or others.

Should you require further information, please do not hesitate to contact us:

Christian Echeverría – cecheverría@vouga.com.py or Carlos Vouga – cvouga@vouga.com.py 

Note: This publication is intended to provide preliminary information about the subject matter in Paraguay, as well as to cover some practical considerations. It is not a complete information material, and anyone interested in the subject matter should seek specific advice.

Copyright © 2016 by Vouga Abogados. All rights reserved.

The ISDA Master Agreement is a broad contract that establishes the general contracting conditions between parties wishing to trade over-the-counter (OTC) derivatives, and can be used to perform swaps or exchanges of currencies, securities, stocks and even interest rates, as well as other derivatives that may be subject to OTC transactions.

Although the Foreign Exchange Forward is covered by the ISDA Master Agreement, this type of transactions are regulated in Paraguay by the Foreign Exchange Forward Transactions Regulations. A condition of said Regulations that deserves special consideration is that disputes arising between the parties to a transaction of this type must be settled before the Courts of Asuncion whenever the transactions are with residents of the country.

However, the ISDA Master Agreement as drafted and published provides for the possibility of choosing between two laws, that of New York or that of the United Kingdom; but the aforementioned Regulation does not refer to the applicable law, but only to the jurisdiction. This is very relevant considering the great differences of the Anglo-Saxon legal systems vis-a-vis the Paraguayan legal system.

For more information, please see the attached file. 

In case you need further information, please do not hesitate to contact us:

Carlos Vouga – cvouga@vouga.com.py; Cynthia Fatecha – cfatecha@vouga.com.py; Mauricio Salgueiro – msalgueiro@vouga.com.py

The Paraguayan Government sanctioned and enacted on December 16, 2015 Law No. 5,542/15 (the “Law”), which guarantees the invariability of the Income Tax rate, equal treatment and legal certainty for those companies that avail themselves of the regime established therein by signing an investment contract with the governmental authorities. It also provides for additional benefits such as the exemption of the additional income tax rate for profit distribution and the reduction of the withholding of the same tax on the remittance of dividends abroad up to 50%, when the investments have a high social content.

The Law is applicable to new investments, as well as to investments made prior to its entry into force, provided that the investment complies with the established requirements, including the approval of the project and the execution of an investment contract.

The Law shall be regulated by the Executive Branch within 120 days of its enactment.

In the attached file you will find a summary of the Law.

In case you need further information, please do not hesitate to contact us:

Rodolfo G. Vouga – rgvouga@vouga.com.py; Jorge Figueredo – jfigueredo@vouga.com.py; Mauricio Salgueiro – msalgueiro@vouga.com.py; Andrés Vera – avera@vouga.com.py

The unstoppable global growth of the population brings with it, among other things, the constant development of industry. As a result, we are surrounded daily by products whose origin and preparation we are seldom aware of. Likewise, it can be seen that large hypermarket stores nowadays present to the final consumer, products known as “organic” products. white markings.

These situations may generate confusion in the consumer since he does not know to whom to complain in case of damage or dissatisfaction with products. At the same time, the Paraguayan jurist is faced with a “globalized” legislation, and this term does not refer to a global legislation in the sense that it includes several countries, but rather when it comes to identifying the responsible party. This is because national legislation does not distinguish between the various parties responsible for the production, importation or marketing of products, but simply “lumps them together” in a single definition. In the following, the reader will find a distinction between these subjects that tends to clarify these doubts that may arise. The analysis is an opening for discussion as the subject lends itself to a much broader analysis.

On March 25, 2015, the Works Commission of the Chamber of Deputies submitted to the Presidency of the Chamber of Deputies for its consideration the Bill “On Prevention of Occupational Risks”.

Vouga Abogados is currently representing the Paraguayan Industrial Union (UIP) in the working group in charge of the review and modification of the Bill.

Professionals of the firm are working together with representatives of the Legislative Branch, MTESS, IPS, MSPyBS, representatives of unions and trade unions, among others.

On October 12, 2015, the Executive Branch of Paraguay officially enacted Law No. 5,407 “On Domestic Work” (the “Law”), thus regulating different aspects of domestic labor relations with a broader scope than that established in the Labor Code. Its scope of application extends to subordinate, regular, remunerated, with or without retirement, domestic services.

Among other things, the Law regulates the following:

• Subjects considered domestic workers
• Modalities of domestic contracts
• Legal presumptions
• Legal minimum salary
• Workday
• Obligatory breaks
• Social security and determination of contributions
• Employment agencies
• Guild protection

En fecha 28 de octubre de 2015, se ha promulgado la Ley Nº 5.508 de «Promoción, Protección de la Maternidad y Apoyo a la Lactancia Materna», en adelante la «Ley», introduciendo importantes cambios en la legislación vigente, que enumeramos a continuación:

Las  disposiciones de la Ley se aplican a personas que desempeñen funciones bajo cualquier modalidad laboral establecida en el Código del Trabajo y/o Ley de la Función Pública.

I. Lactancia:

La Ley establece las siguientes definiciones y distinciones:

a. Lactancia Materna Exclusiva: alimentación de un lactante exclusivamente con leche materna sin el agregado de agua, jugos, té u otros líquidos o alimentos.

b. Lactancia Materna Complementada: cuando el lactante, además de leche materna, recibe cualquier alimento sólido o semisólido, con la finalidad de complementarlo y no de sustituirlo.

El Código de Trabajo anteriormente establecía una protección y descansos adicionales durante el período de lactancia para la trabajadora sin establecer un plazo determinado de duración. Esta Ley establece que se promoverá, protegerá y apoyará la lactancia materna exclusiva hasta los 6 (seis) meses de edad y la lactancia materna complementaria hasta los 24 (veinticuatro) meses de edad.

Durante el periodo de lactancia se concederá a las madres trabajadoras, un permiso al día de 90 (noventa) minutos para amamantar a sus hijos durante los primeros 6 (seis) meses, los cuales podrán ser usufructuados por la madre de la forma en que ella estime conveniente, en función a las necesidades del niño, computados desde el primer día de reintegro al trabajo después del Permiso de Maternidad; pudiendo extenderse dicho permiso según indicación médica, desde los 7 (siete) meses incluso hasta 24 (veinticuatro) meses de edad que en este caso será de 60 (sesenta) minutos al día.

Dicho permiso será considerado como período trabajado, con goce de salario. En caso de parto múltiple, dicho permiso se incrementará 60 (sesenta) minutos más por día a partir del segundo hijo. Además, el empleador dará el tiempo necesario a la madre trabajadora en su empleo, para realizar la extracción de la leche materna, para lo cual brindará las condiciones necesarias y contará con una sala de lactancia.

II. Maternidad:

La Ley establece como Permiso de Maternidad un período de 18 (dieciocho) semanas ininterrumpidas, toda vez que presente un certificado médico expedido o visado por el Instituto de Previsión Social o el Ministerio de Salud Pública y Bienestar Social, en el que indique su gravidez y su posible fecha de parto. En interés superior del niño la trabajadora podrá tomar el permiso 2 (dos) semanas antes del parto.

Así también se dispone que cuando el parto se produjese antes de iniciada la semana número 35 (treinta y cinco) de gestación, o si el niño al nacer pesare menos de 2.000 (dos mil) gramos o naciera con enfermedades congénitas que ameriten incubadora o cuidados especiales, justificados con certificación médica, el permiso de maternidad será de 24 (veinticuatro) semanas.

En caso de embarazos múltiples el período de permiso de maternidad establecido, se incrementará en razón de 1 (un) mes por cada niño a partir del segundo niño.

Si la madre muriera en el parto o durante el período de permiso posterior a éste, dicho permiso o el resto del tiempo que faltase transcurrir hasta el término del permiso, será destinado al padre o a quien fuera designado por la familia de la madre como cuidador del niño o de los niños, siempre que este período de tiempo, sea destinado en forma exclusiva al cuidado.

El ejercicio del derecho de usufructo del permiso de maternidad, tendrá por efecto la prohibición de realizar trabajo alguno o prestar servicios en forma parcial, aleatoria u ocasional a favor de terceros.

Durante el Permiso de Maternidad, la trabajadora recibirá un subsidio con cargo al Régimen de Seguridad Social del Instituto de Previsión Social (IPS) equivalente al 100% (cien por ciento) de su remuneración al momento de ocurrido el parto.

En el caso de que el empleador no haya inscripto o se encuentre en mora en relación al cumplimiento de las obligaciones establecidas en el Régimen de Seguridad Social del Instituto de Previsión Social (IPS), este deberá asumir el pago del 100% (cien por ciento) del monto correspondiente al subsidio establecido en el presente artículo, sin perjuicio de la aplicación de las demás sanciones administrativas que pudieran corresponder.

 
III. Otros permisos laborales:

Se establecen además los siguientes permisos laborales relacionados con la maternidad y la paternidad:

Permiso por Adopción: la madre adoptante, acreditada con sentencia judicial y la madre de la familia de acogimiento, declaradas como tales por sentencia judicial, tendrán derecho a acceder al permiso por maternidad de 18 (dieciocho) semanas cuando el adoptado o el niño acogido, fuere menor de 6 (seis) meses, y 12 (doce) semanas cuando fuere mayor de 6 (seis) meses.

Permiso por Paternidad: serán concedidos, con carácter irrenunciable, a todo trabajador padre de recién nacido, 2 (dos) semanas posteriores al parto, con goce de sueldo, a cargo del empleador. .

IV. Acciones nulas y otras disposiciones:

Desde el momento en que el empleador haya sido notificado del embarazo de la trabajadora y mientras esta usufructúe el Permiso de Maternidad, así como los demás permisos establecidos en la presente Ley, incluyendo los permisos de lactancia, será nulo el pre aviso y el despido comunicado al trabajador.

La mujer gozará de inamovilidad laboral hasta 1 (un) año después del nacimiento o adopción de la niña o el niño. En ningún caso el embarazo, la adopción, el nacimiento de la niña o el niño, o la lactancia puede constituir directa o indirectamente causa justificada de despido.

Las instituciones públicas y empresas del sector público y privado, en las cuales trabajen más de 30 (treinta) mujeres, implementarán salas de lactancia materna habilitadas por el Ministerio de Salud Pública y Bienestar Social, de acuerdo con la normativa vigente.

V. Implementación progresiva de los permisos de maternidad:

Los Permisos de Maternidad establecidos en la presente Ley serán efectivizados en forma progresiva, durante el período de tiempo descripto a continuación, hasta llegar a la concesión del 100% (cien por ciento) de los permisos dispuestos en la presente Ley.

A partir de la fecha de entrada en vigencia de la presente Ley y por el plazo de 6 (seis) meses, el Permiso de Maternidad será de 14 (catorce) semanas.

A partir de los 6 (seis) meses de la fecha de entrada en vigencia de la presente Ley y hasta el plazo de 1 (un) año de entrada en vigencia la presente Ley, el Permiso de Maternidad será de 14 (catorce) semanas.

A partir del plazo de 1 (un) año desde la fecha de entrada en vigencia de la presente Ley y hasta el plazo 3 (tres) años computados desde la fecha de entrada en vigencia de la presente Ley, el permiso de maternidad será de 18 (dieciocho) semanas.

La progresividad de la aplicación de la presente Ley con relación al pago del subsidio a cargo del Instituto de Previsión Social (IPS), será a partir de la fecha de su promulgación en razón de 50% (cincuenta por ciento) del salario hasta los 6 (seis) meses, del 75% (setenta y cinco por ciento) del salario hasta los 12 (doce) meses y del 100% (cien por ciento) del salario a partir del tercer año de promulgada la Ley.

El Ministerio de Salud Pública y Bienestar Social es la Autoridad de Aplicación de la Ley, dentro de su competencia. Así mismo la Ley establece que el Ministerio de Trabajo, Empleo y Seguridad Social, será el órgano fiscalizador estableciendo los procedimientos adecuados para esto.

Para mayor información o consultas contactar con palderete@vouga.com.py o wvera@vouga.com.py

Legal500, one of the world's leading law firm directories, has recently published its latest edition of law firm rankings in Latin America and the rest of the world.

Vouga Abogados topped the rankings with seven recommended practice areas - the highest number among firms in Paraguay and the only one with recommendations in all practice areas listed in the country. Vouga ranked first in three of them and second in three others - the only law firm in Paraguay with three areas in the top tier.

Thus, the Firm ranks at the top with the Corporate/M&A, Tax and Litigation practice areas. In addition, the Firm has recommendations for the practice areas of Banking and Finance, Environmental Law, Intellectual Property and finally, Labor Law and Social Security.

We thank our customers and friends for their continued trust.