How Does a Company Incorporate in the Country of Honduras?

Incorporating a business in a foreign country requires careful adherence to that country's business laws.

According to the U.S. Embassy's report on doing business in Honduras, the country enjoys relative stability and welcomes foreign investments (see References 1). The country has lucrative tax incentives for doing businesses. Individuals do not have to pay income taxes for the first $5,600 of their income (as of 2010). Entrepreneurs looking to incorporate in Honduras must follow the procedures set forth by the Honduras government. According to flagsofconvenience.com, investors must employ a Honduras law firm to file the proper papers with the Honduras government.

Instructions

1. Find a business partner and raise sufficient capital. Honduras requires corporations to have at least two business partners and to have at least $1,600 in capital.

2. Invest the capital into a local Honduras bank. Obtain a certificate of deposit proving the amount of the corporation's capital.

3. Compile the following information: Names, addresses and photographs of each investor; name and description of the business (including any commercial names of the business and the market for the business) and designations as to who will operate the business.

4. Employ a law firm in Honduras to finalize the formal incorporation requirements. Grant the law firm power of attorney to form the corporation. Provide the law firm with information you compiled about the business and the certificate of deposit showing adequate capital.

References

• Honduras.USembassy.gov: Doing Business in Honduras
• Honduraslegal.com: General Information on Incorporation in Honduras
• Flagsofconvenience.com: Honduras