A Complete Guide to Honduras Company Registration

Honduras Company RegistrationThe Republic of Honduras is in the Latin America and Caribbean (LAC) region. Rich in natural resources, the Honduran Government promotes a business-friendly environment with sustainable, policy-driven strategies. The country’s foreign direct investments (FDIs) are increasing, with access to open markets and a growing industrial base. With some professional assistance in Honduras company registration, entrepreneurs can get off to a great start in business here.

 

Type of Business Entities in Honduras

Knowing which entity is the most suitable before beginning the process is essential. The company formation process can take four to six weeks, and costs range from USD 250 to USD 1,300. Honduras offers several types of business vehicles, but the most popular, which can be wholly foreign-owned, are as follows:

  • Limited Liability Company (LLC): the Sociedad de Responsabilidad Limitada, or SdeRL, is an incorporated company with low minimum share capital. The liability of social partners is limited to their capital contribution.
  • Public Limited Company (PLC): Sociedad Anónima, or S.A., is incorporated with publicly traded shares. It requires a minimum of two directors and has a higher share capital than an LLC.

Other types of company structures include the following:

  • Branch Office or Sucursale: Facilitates foreign companies doing business in the country. It has unlimited liability and requires the appointment of a Honduran permanent resident.
  • Representative Office or Oficina de Representacion: only allows non-income generating activities such as market research or promotional activities.
  • Sole Proprietorship: fastest and easiest to set up as the company is unincorporated, but the owner has unlimited liability.
  • Partnership: an unincorporated company where partners share liability.

 

Company Registration Process in Honduras

Generally, the Honduras company registration process is one of the most straightforward in the LAC region. Businesspeople can initiate the process by opening a Honduran bank account and depositing an initial capital. This will then facilitate the next steps in the process, which are:

  • Drafting and registering the company’s articles of incorporation and other constitutional documents
  • Applying for a Honduran tax identification code
  • Registering with the Honduran Chamber of Commerce, both locally and nationally

 

Once these steps are successful, applications for zoning certificates and operational permits become due. Company formation will be complete upon registration with the local authorities with all the relevant documentation and licences. This step also includes registering for the following:

  • The SAR or Revenue Administration Service in the Ministry of Finance for taxes
  • The IHSS or Social Security Institute
  • The FOSOVI or Social Housing Fund
  • The INFOP or Professional Training Institute

 

Modern Enterprise Solutions

Entrepreneurs and businesspeople looking for seamless and hassle-free Honduras company registration will benefit from our enterprise solution range. We offer customisable and comprehensive packages for all your modern business needs. Contact us today to explore the most viable way to start your company in Honduras.

Honduras Company Registration