Doing Business with Honduras

A comprehensive guide to doing business, exporting, investing, and manufacturing in Honduras.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Albanian Investment Development Agency

Tel: +355 42 251 001
Email: info@aida.gov.al
Web: www.aida.gov.al

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General Directorate of Customs

Albania General Directorate of Customs - International Trade Council

 

Tel: +355 42 253 820
Email: helpdesk.dpd@dogana.gov.al
Web: www.dogana.gov.al

National Chamber of Commerce

Albanian Chamber of Commerce and Industry

Albanian Chamber of Commerce and Industry - International Trade Council

Tel: +355 45 800 932
Email: cci.tirana@cci.al
Web: www.cci.al

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Ministry of Finance and Economy, Albania

  • Type of Government: Republic
  • Population: Approximately 10 million
  • GDP: Around $27 billion USD
  • Corporate Tax Rate: 25%
  • Personal Income Tax Rate: 10% to 25%
  • Major Exports: Coffee, textiles, bananas, palm oil
  • Major Imports: Machinery, chemicals, fuel, foodstuffs

 

Exporting to Honduras involves several key steps. Here’s a comprehensive guide:

  1. Research Market Requirements

    • Understand Honduras’s import regulations and standards for your product.
    • Check for any product-specific certifications needed.
  2. Identify Local Partners

    • Establish relationships with local distributors or agents in Honduras.
  3. Prepare Export Documentation

    • Include commercial invoices, packing lists, and certificates of origin.
    • Ensure compliance with labeling and packaging requirements.
  4. Arrange Logistics and Shipping

    • Choose a reliable shipping company experienced with exports to Honduras.
    • Ensure accurate completion of shipping documents, such as bills of lading.
  5. Customs Declaration

    • Work with a customs broker to facilitate the clearance process.
    • Pay any necessary duties and taxes.
  6. Understand Duties and Taxes

    • Familiarize yourself with Honduras’s import duties and applicable taxes.
  7. Distribution and Sales

    • Establish distribution channels within Honduras.
    • Consider partnerships with local businesses for effective market penetration.

Key Contacts

Importing goods into Honduras involves several steps. Here’s a comprehensive guide:

  1. Verify Import Regulations

    • Ensure your goods comply with Honduras’s import regulations.
    • Check if products require specific permits or certifications.
  2. Classify Your Goods

    • Determine the correct tariff classification using the Harmonized System (HS) codes.
  3. Obtain Necessary Licenses

    • Apply for any required import licenses or permits for specific goods.
  4. Prepare Import Documentation

    • Necessary documents include commercial invoices, packing lists, and certificates of origin.
  5. Arrange Shipping and Logistics

    • Choose a reliable logistics provider experienced with imports to Honduras.
    • Ensure proper packaging and labeling of goods.
  6. Customs Declaration

    • Submit a customs declaration to Honduran customs authorities.
    • Pay any applicable duties and taxes.
  7. Customs Clearance

    • Work with a customs broker to facilitate clearance if needed.
    • Ensure compliance with all import requirements.
  8. Receive Goods

    • Coordinate with your logistics provider to receive and inspect goods upon arrival.

Key Contacts

Incorporating a company in Honduras involves several steps. Here’s a comprehensive guide:

  1. Choose a Company Name

    • Ensure the name is unique and complies with local regulations.
    • Check availability with the Mercantile Registry.
  2. Draft the Articles of Incorporation

    • Prepare the necessary documents outlining the company’s structure and purpose.
  3. Notarize Documents

    • Have the Articles of Incorporation notarized by a local notary public.
  4. Register with the Mercantile Registry

    • Submit the notarized documents to the Mercantile Registry.
    • Pay the registration fee.
  5. Obtain a Tax Identification Number (RTN)

    • Register with the Honduran Tax Authority (SAR) to get an RTN for tax purposes.
  6. Register for Social Security

    • Enroll employees with the Honduran Institute of Social Security (IHSS).
  7. Open a Bank Account

    • Open a corporate bank account in Honduras to manage finances.
  8. Obtain Necessary Permits and Licenses

    • Depending on your industry, apply for relevant business permits or licenses.

Costs

  • Registration Fees: Vary depending on company size and capital.
  • Notary Fees: Depend on the complexity of the documents.
  • Legal Fees: If using an attorney, costs will vary based on services.

Key Contacts

Setting up a manufacturing plant in Honduras involves several steps. Here’s a comprehensive guide:

  1. Conduct Market Research

    • Analyze the market to understand demand, competition, and location advantages.
  2. Choose a Suitable Location

    • Consider factors such as proximity to raw materials, transportation, and labor availability.
  3. Incorporate Your Company

    • Follow the steps to incorporate a company in Honduras, including registration with the Mercantile Registry.
  4. Obtain Necessary Permits and Licenses

    • Apply for environmental, zoning, and construction permits through local authorities.
  5. Secure Financing

    • Explore financing options through banks or investment partners.
  6. Design and Construct the Facility

    • Hire local architects and contractors for design and construction.
    • Ensure compliance with local building codes and regulations.
  7. Install Equipment and Machinery

    • Purchase and install machinery necessary for production.
    • Ensure equipment meets safety and operational standards.
  8. Hire and Train Workforce

    • Recruit skilled labor and provide necessary training.
    • Register employees with the Honduran Institute of Social Security (IHSS).
  9. Set Up Supply Chain and Distribution

    • Establish relationships with suppliers and distributors to ensure smooth operations.
  10. Begin Operations

    • Start production and monitor operations for efficiency and quality control.

Key Contacts

Registering a trademark in Honduras involves several steps. Here’s a comprehensive guide:

  1. Conduct a Trademark Search

    • Ensure your trademark is unique and not already registered.
    • Use the database at the Honduran Intellectual Property Office.
  2. Prepare Your Application

    • Include details such as the trademark design, classification of goods/services, and applicant information.
  3. File Your Application

    • Submit the application to the Honduran Intellectual Property Office (IP Office).
  4. Pay the Application Fee

    • Fees vary; contact the IP Office for the latest costs.
  5. Examination Process

    • The office reviews the application for compliance and potential conflicts.
    • Respond promptly to any objections or requests for additional information.
  6. Publication and Opposition

    • If approved, the trademark is published for opposition. There is a period for third parties to challenge the registration.
  7. Registration and Certification

    • If no oppositions arise, the trademark is registered. You will receive a certificate of registration.
  8. Maintain and Renew the Trademark

    • Trademarks are valid for 10 years and can be renewed. Submit renewal applications before expiry to maintain protection.

Costs

  • Application Fees: Contact the Honduran Intellectual Property Office for specific costs.
  • Legal Fees: If using an attorney, costs will vary based on services.

Key Contacts

Resolving commercial disputes in Honduras involves several steps. Here’s a guide on the process:

  1. Attempt Negotiation

    • Begin by negotiating directly with the other party to reach an amicable solution.
  2. Mediation

    • Engage a mediator to facilitate discussions.
    • Mediation is often quicker and less formal than court proceedings.
  3. Arbitration

    • Consider arbitration for a private and binding resolution.
    • Provides a structured approach with enforceable decisions.
  4. Seek Legal Advice

    • Consult with a lawyer specializing in commercial law for guidance on your case.
  5. File a Lawsuit

    • If other methods fail, file a lawsuit in the appropriate commercial court.
    • Prepare necessary documentation and evidence.
  6. Court Proceedings

    • Attend hearings and present your case.
    • Follow the legal procedures as guided by your attorney.
  7. Judgment and Enforcement

    • If a judgment is made, ensure its enforcement through legal channels.

Costs

  • Mediation and Arbitration Fees: Vary depending on the service provider.
  • Court Filing Fees: Depend on the jurisdiction and case type; consult local courts.
  • Legal Fees: Vary based on the lawyer and complexity of the case.

Key Contacts

When considering doing business in Honduras, various social, cultural, political, and economic factors must be taken into account.

Social and Cultural Factors

  • Language: Spanish is the official language. Understanding local language and culture is crucial.
  • Business Etiquette: Personal relationships and trust are important in business dealings.

Political Factors

  • Government Structure: Honduras is a republic. Political stability can vary, affecting business operations.
  • Investment Incentives: The government offers incentives for foreign investment, especially in key sectors.

Economic Factors

  • Developing Economy: Honduras is working to improve its economic infrastructure, with opportunities in various sectors.
  • Foreign Exchange: The Honduran lempira (HNL) is the official currency. Be aware of exchange rate fluctuations.

Rule of Law

  • Legal Framework: The legal system is based on the Civil Code. Understanding local laws and regulations is essential.
  • Judiciary: The judiciary operates independently, but processes can be slow.

Business Environment

  • Infrastructure: Infrastructure development is ongoing, impacting logistics and operations.
  • Workforce: Honduras has a young and growing workforce, though skill levels may vary.

Key Contacts

Our Members Include Leading Organizations in Honduras

Ask our Experts on Doing Business in/with Honduras

If you’re looking to do business or invest in Honduras, we can provide expert guidance, market insights, and valuable connections to help you navigate the local landscape. Contact us today to discover how we can assist in making your venture a success.