Paragroups play a central role in the study and classification of subfactors. In the first place, the author defines a notion of extremality for paragroups, shown to be compatible with the notion of extremal inclusions of type \(II_1\) factors considered by \textit{M. Pimsner} and \textit{S. Popa} [Ann. Sci. Éc. Norm. Supér., IV. Sér. 19, 57-106 (1986; Zbl 0646.46057)]. It is proved that the paragroup of an extremal inclusion of \(II_1\) factors is extremal and conversely, that an extremal paragroup is isomorphic to the paragroup of an extremal inclusion. The main part of the paper is concerned with the free composition of paragroups. This notion is defined by the author modelling on the free composition of subfactors introduced by \textit{D. Bisch} and \textit{V. Jones} [Invent. Math. 128, No.~1, 89-157 (1997; Zbl 0891.46035)] and on that of fusion algebras defined by \textit{F. Hiai} and \textit{M. Izumi} [Int. J. Math. 9, 669-722 (1998; Zbl 0978.46043)]. Finally, the existence of an extremal paragroup that realizes the free composition of two given extremal paragroups is established.
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