Investing in Honduras: A Look at Options and Procedures

Honduras, a country with significant economic growth potential, presents a range of investment opportunities for both domestic and foreign investors. The "Law for the Promotion and Protection of Investments" (Decree No. 51-2011) outlines the various forms through which investments can be made in this Central American nation. These include participation in companies, various contractual agreements, tangible or intangible property rights, movable or immovable assets, and property rights such as leases, mortgages, liens, and pledges.

Investment through Companies: The Common Route

The most common way to invest in Honduras is by establishing a company. Whether a national or a foreign investor, the creation of a mercantile society involves meeting information and documentation requirements and undertaking procedures with government entities. The process begins with the declaration and/or constitution of the mercantile society before a Notary Public authorized by the Supreme Court of Justice. In this declaration, shareholders specify key aspects such as the form of governance, social denomination, capital, the purpose of the society, social domicile, and the form of administration.

The second step is the publication, meaning the registration of the Deed of Constitution in the Public Registry of Commerce. This action involves the payment of registration fees calculated based on the social capital established in the Deed. Subsequently, the society must register with the tax authority (Service of Tax Administration) to obtain the National Tax Registry (RTN). Once these steps are completed, the company can open bank accounts and protect its intellectual property, if applicable.

Additional Steps for Successful Operation

For a society to be ready to operate, it must adhere to the billing regime before the Tax Administration Service and obtain the Operating Permit granted by the Municipal Mayor's Office of the social domicile. Additionally, depending on the nature of the business, additional permits may be required, such as the Sanitary License for establishments selling food, registration with the Honduran Social Security Institute (IHSS), among others.

Incorporation of Foreign Companies: Detailed Procedures

If a foreigner chooses to incorporate their foreign company in Honduras, the process involves several key steps:

• Make the decision or agreement to incorporate in a Shareholders' or Partners' Assembly.

• Authorize before a Notary the Assembly Minutes with the corresponding Agreement.

• Apostille the authorization of the Assembly Minutes and the Deed of Constitution in the country of origin.

• Bring the apostilled original documents and register them in the Public Registry of Commerce in Honduras.

Once these steps are completed, the foreign company will be legally established in Honduras but must follow the aforementioned processes to successfully operate in the country.

In summary, investing in Honduras offers various options and opportunities, but it is essential to follow the procedures established by local legislation to ensure a successful and legal operation in this Central American nation.

Galindo & Asociados: Your Trusted Partner for Investing in Honduras.

If you're considering investing in Honduras, having the support of experts is crucial. In this regard, Galindo & Asociados emerges as a strategic ally to streamline the establishment of your company or investment in the Honduran market. With years of experience in legal and commercial fields, the Galindo & Asociados team provides comprehensive guidance, navigating you through complex regulatory processes, and offering customized solutions to ensure the success of your venture in Honduras.

For more information on how this innovation may affect your operation or investment in Honduras, the Galindo & Asociados team is at your disposal.

Carlos Galindo

Socio Director

carlos@galindoyasociados.com

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