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Honduras offers unmatched logistics and cost advantages. With robust free-trade frameworks (ZOLI) granting tax exemptions, it excels in nearshoring. Home to Puerto Cortés, the region's deepest deepwater port, it ensures lightning-fast, low-cost shipping to the US, giving exporters a distinct competitive edge.
Registration is entry-friendly with minimal capital rules for limited liability companies and corporations. While company directors can be of any nationality or residency, you must legally appoint a local representative. The specialized online portal also allows fast digital submission of documents.
Honduras has no double tax treaty with the US, only tax info exchange agreements (TIEA & FATCA). Since there are no reduced treaty rates, cross-border payments are fully subject to standard local withholding taxes in each country.
Main industriesfor Business in Honduras
Coffee-Led Agribusiness
Honduras is Central America's largest coffee producer. Its agricultural sector is uniquely anchored by coffee, African palm oil, and commercial fruit cultivation.
Textile and Knitwear Maquila
This industrial powerhouse serves major US brands. It commands a far higher share of the national export basket here compared to its neighbors.
Electrical Wire and Automotive Harnesses
A true standout from Guatemala, this fast-growing light manufacturing niche produces over $1.2 billion annually in insulated wiring for global markets.
Commercial Aquaculture and Seafood
Anchored by major shrimp and lobster farming operations along both coasts, this specialized sector forms a vital and unique export pillar for the nation.
How long does it take to legally set up a business in Honduras?
Establishing an entity takes roughly 42 days across 11 steps. It requires a notary public for the deed, filing with the Mercantile Registry, getting a National Tax Registry (RTN) number, and obtaining local municipal operating permits, which take weeks.
Can foreign investors fully own a business in Honduras?
Yes, 100% foreign ownership is legal for most sectors under the Investment Law. Exceptions apply to small businesses (capital under $6,300), domestic aviation, commercial fishing, forestry, and local media, which require majority Honduran ownership.
What are the labor restrictions regarding hiring foreign nationals?
Honduran labor law enforces a strict quota: at least 90% of a company’s workforce must be Honduran citizens, and at least 85% of the total payroll must be paid to them. Additionally, hourly employment laws were repealed, making all workers salaried.
What are the major infrastructure and operational risks for businesses?
Investors face high-cost and unreliable electricity with frequent blackouts, regulatory delays, and land disputes. Recent unconstitutionality rulings against special economic zones (ZEDEs) and withdrawal from ICSID have also heightened legal uncertainty.
Does Honduras offer tax incentives or free trade zones for foreign trade?
Yes. Honduras offers tax-advantaged frameworks like Free Trade Zones (ZOLI), Industrial Export Processing Zones (ZIP), and the Temporary Import Law (RIT). These regimes grant corporate income tax exemptions and duty-free import of raw materials and machinery.
What is the minimum share capital required to start a company in Honduras?
While historical minimums were higher, recent commercial law flexibilities allow companies to be formed with nominal initial capital (often starting around HNL 5,000 for an S. de R.L. or HNL 25,000 for an S.A.). However, it is structurally recommended to deposit an amount sufficient to cover initial operating and administrative costs.
Can the incorporation process be done entirely online?
Honduras has introduced digital components through platforms like Mi Empresa en Línea for certain simplified setups. However, complex foreign investments involving foreign corporate shareholders, specific customized bylaws, or special tax regimes (like ZOLI) still require formal physical execution via a Honduran Notary Public and physical filings at the Mercantile Registry.
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Why H&CO?
We specialize in guiding global investors, families, and multinational businesses through the complexities of cross-border investments and business expansion. With offices in over 30 countries, we are a trusted partner for those seeking to relocate, invest, or expand their business abroad providing tax, advisory, and integrated global solutions.
1,000+ multilingual professionals, providing local expertise with a global perspective.
Client-focused leadership with deep industry experience in global markets.
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