From the Super Mario Wiki, the Mario encyclopedia
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Paper Ninjis are paper forms of Ninjis that appear as enemies in Mario & Luigi: Paper Jam. Like with their regular counterpart that also appears in the game, Paper Ninjis can camouflage themselves in the overworld and jump out when the player gets near. Both variants of the Ninjis can duplicate themselves, though the fake versions of the Paper Ninjis are identified by them folding before attacking. If there is both a regular Ninji and a Paper Ninji in the battle, the Paper Ninji can be folded into a shuriken to be thrown by the regular Ninji. Paper Ninjis are commonly found at Gloomy Woods, and one is fought in Neo Bowser Castle alongside a regular Ninji, a Spiny and a Paper Spiny as one of Bowser's last lines of defense.
Rare, shiny variants can also appear in place of the regular Paper Ninjis in the same areas. These Ninjis have greater stats and will always drop a Candy and Shiny Battle Card when defeated, though their methods of attack remain the same.