Business entities in Honduras

Business entities in Honduras

Honduras business hub for foreignersSince 2003, Healy Consultants provides our Clients with the best corporate structures for business in the Honduras. There are several ways of doing business in Honduras, the most common being the setting up of a limited liability company (SdeRL). Alternatively, entrepreneurs may establishing a public limited company (SA). Foreign legal entities may also set up a Branch Office or a Representative Office.

The Honduras limited liability company (SdeRL)

The Honduras SdeRL is the most preferred legal body used by entrepreneurs setting up businesses in Honduras. An SdeRL requires at least 1 director and 2 shareholders of any nationality and are not required to be resident in Honduras. The shareholders may be individuals or corporate bodies. An SdeRL requires a minimum share capital of US$250 to be incorporated.

The Honduras public limited company (SA)

  • The Honduras SA requires at least 2 shareholder who can either be individuals or legal entities to be incorporated. An SA must also appoint at least 1 director who can be of any nationality and must not be resident in Honduras. A SA requires a minimum share capital of US$1,250 to be incorporated;
  • The Honduras SA is required by law to appoint a statutory auditor.

The Honduras branch (sucursale)

The Honduran Commercial Code allows foreign legal entities looking to do business in Honduras to establish branch offices for their entities in Honduras. A minimum share capital of US$1,300 is required when incorporating a branch. This entity’s scope of operations in Honduras is defined and controlled by the parent company. The branch must appoint at least 1 Honduran permanent resident of any nationality to be the company’s representative in Honduras.

The Honduras representative office (oficina de representacion)

Foreign entities are allowed to establish representative offices in Honduras to act as a liaison with the parent company but are not considered legal entities and are not allowed to engage in any commercial activities in Honduras. A rep office must appoint at least 1 resident representative of any nationality. This entity is only allowed to conduct i) market research and ii) promotional activities of the parent company’s products and services.

Comparison table between Honduras business entities

 LLCPLCBranch officeRep office
Also known asSdeRLSAsucursaleoficina de representación
How long to set the company up?6 weeks7 weeks10 weeks8 weeks
How long to open company bank account?4 weeks4 weeks4 weeks4 weeks
Legal liability?LimitedLimitedUnlimitedUnlimited
Wholly foreign owned?YesYesYesYes
Minimum share capital?US$250US$1,250US$1,300US$1
File annual tax return?YesYesYesNo
Tax registration certificate required?YesYesYesNo
Recommended corporate bank account?HSBC BankAtlantida BankBACDavivienda Bank
Does our Client need to travel?NoNoNoNo
Resident director required?NoNoNoNo
Resident shareholder required?NoNoNoNo
Resident legal representative required?NoNoYesYes
Minimum directors allowed?1111
Minimum shareholders?2211
Tax identification code (TIN) needed?YesYesYesNo
Honduras resident company secretary required?NoNoNoNo
Corporate shareholders allowed?YesYesYesYes
Corporate director(s) allowed?YesYesYesYes
Honduras corporate tax rate?25%25%25%0%
Annual financial statements required?YesYesYesNo
Statutory audit required?NoYesNoNo
Regulated by?Chamber of Commerce & IndustryChamber of Commerce & IndustryChamber of Commerce & IndustryChamber of Commerce & Industry
Allowed to issue sales invoices?YesYesYesNo
Allowed to sign contracts?YesYesYesNo
Allowed to import and export goods?YesYesYesNo
Can rent an office space in Honduras?YesYesYesYes
Can buy Honduras property?YesYesYesNo
Can own equity in other Honduras companies?YesYesYesNo
Total Honduras business setup costs in Yr. 1US$15,400US$17,400US$18,550US$18,550
Subsequent annual costs (incl. accounting and tax fee)US$6,300US$6,300US$6,300US$6,300
Sample engagement invoicedraft invoice for Honduras LLCdraft invoice for Honduras SAdraft invoice for Honduras branchdraft invoice for Honduras rep office

External videos

Contact us

For additional information on our business setup services in Honduras, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
Central Bank of Honduras honduras-mof Chamber of Commerce and Industry of Tegucigalpa