Honduras Info
Joined: 16 Nov 2006
Posts: 17
Home Country: honduras
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 Posted: Wed Nov 22, 2006 9:47 pm Post subject: DOING BUSINESS IN HONDURAS / HONDURAS BUSINESS GUIDE |
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DOING BUSINESS IN HONDURAS
STARTING A BUSINESS
STANDARDIZED COMPANY
Legal Form: Private Limited Company
Minimum Capital Requirement: 25,000
City: Tegucigalpa
Registration Requirements:
Procedure 1. Procure a certificate of deposit at a local bank; pay the registry fee
Time to complete: 1 day
Cost to complete: no charge
Procedure 2. Constitute the company before a Notary Public, who is to draw up the instrument of organization
Time to complete: 2 days
Cost to complete: 5% until HNL 25,000 and 3% over HNL 25,000 of the capital.
Comment: The process is known as "Simultaneous Organization" (Fundación Simultánea). The company may be formed: a) Simultaneous Organization; or, b) Public Subscription.
The constitution instrument should be written in a special paper called stamped paper (Papel sellado). The sealed paper has a value of Lps. 5.00 and it is used by the Notary for its protocol which is the collection of original signed documents in Notary custody and for the Both the Notary protocol first copy or "testimonio" ).
Procedure 3. Publish the registration notice in "La Gaceta", the official journal or an ordinary newspaper
Time to complete: 1 day
Cost to complete: USD 35 for one advertisement in "La Gaceta"; USD 15 in a newspaper
Comment: The cost has been increased to about US$35 for one advertisement.
Procedure 4. Purchase the bar stamps from the Banco Atlántida S.A
Time to complete: 1 day
Cost to complete: included below
Comment: Bar Stamps (Timbres del Colegio de Abogados) have their own particular design and values and can it buy officially only in Banco Atlántida S.A.
Procedure 5. File the articles of incorporation with the Mercantile Registry at the Chamber of Commerce
Time to complete: 7 days
Cost to complete: In Tegucigalpa, with Decree 253-2005, company registration was transferred from the Property Registry (Instituto de Propiedad) to the Chamber of Commerce.
Art. 53 Law of Property
HNL 1.5 for each HNL 1,000 of corporation capital (Derechos de registro/registration fees) + HNL 30 up to HNL 300,000 of the capital and HNL 10 for each HNL 100,000 after HNL 300,000 (Bar stamps/Timbres del Colegio de Abogados).
Procedure 6. Apply for the tax identification code (Registro Tributario Nacional, RTN) at the Dirección Ejecutiva de Ingresos (DEI), Ministry of Finance
Time to complete: 1 day
Cost to complete: no charge
Comment: All natural or juridical persons must obtain the RTN. The Notary who authorizes an incorporation deed must send a note to the administrative authority informing of such incorporation, in order to obtain the RTN.
Procedure 7. Acquire legal accounting and minutes books
Time to complete: 1 day
Cost to complete: USD 180
Comment: The minutes books can now be authorized as separate bound sheets and not precisely as a book.
Procedure 8. Apply for an operational permit (Permiso de Operación) from the municipal authorities via an attorney
Time to complete: 30 days
Cost to complete: HNL 1,250 + HNL 1,000 professional fee
Comment: To obtain the operational permit it is necessary to file some or all of the following requirements, depending on the type of industrial or commercial activity
a) Copies of the personal identification card and municipality tax solvency of the General Manager.
b) Copy of the RTN.
d) Copy of the cadastral code (Clave cadastral) corresponding to the place in which the corporation will do its business.
c) Copy of the constitution instrument (escritura de constitución de la compañía)
e) Zoning constancy.
g) Tenancy agreement and constancy of income tax solvency corresponding to the owner of the place in which the corporation will do its business.
f) Environmental impact statement
h) Cadastral inspection in the place in which the corporation will do its business.
i) Paid the following taxes:
Nomenclature tax; Zoning tax; Inspection tax; Code tax; Environmental tax; Payment of the annual tax fire department and annual tax garbage department. (Variable cost according to corporation's income)
To obtain the operational permit it is necessary to hire a lawyer and pay up to Lps. 5,000 for a larger business, Lps.1,000 for a small business.
The applicable municipal taxes for obtaining the permit have changed in Tegucigalpa under the new city tax regulation in 2003. Now they amount to a total of lps.1,250 distributed in the different concepts listed above.
One can proceed to the following procedures with an official receipt issued upon the submission of application..
Procedure 9*. Register for Sales tax and acquire the authorization of the company books
Time to complete: 7 days (simultaneous with procedure 8)
Cost to complete: nominal
Comment: According to the Tributary Code (Código Tributario), the corporation is obliged to recording constitution instrument and the operation permit before the Minister of Finance, in order to pay sales taxes imposed on the sale of goods or services.
Procedure 10*. Register at the Hand Labor Training Institute (Instituto Nacional de Formación Profesional - INFOP)
Time to complete: 1 day (simultaneous with procedure 8)
Cost to complete: no charge
Comment: Employers are obliged to contribute 1% of the company's total payroll to INFOP.
Procedure 11*. Register at Social Security Institute (Instituto Hondureño de Seguridad Social - IHSS)
Time to complete: 7 days (simultaneous with procedure 8)
Cost to complete: no charge
Comment: IHSS is the national social security hospital and out-patient care institution for workers and their dependants. The corporation is obliged to contribute 5% of each employee's salary, for illness and maternity (enfermedad y maternidad, EM), plus 2% for disability, old age and death, (invalidez, vejez y muerte,IVM), a total of 7% until a maximum of Lps.2,400.00.
Procedure 12*. Register at Social Fund for Housing (Régimen de Aportación, (RAP) al Fondo Social de la Vivienda (FOSOVI))
Time to complete: 1 day (simultaneous with procedure 8)
Cost to complete: no charge
Comment: If the corporation has more than 10 employees, are obliged to contribute 1.5% of each employee's salary.
Procedure 13*. Register with local and national Chambers of Commerce
Time to complete: 1 day (simultaneous with procedure 8)
Cost to complete: nominal
Note: Procedures sometimes take place simultaneously. Instances of this are marked with an asterisk (*).
TAXATION
Personal income in Honduras is taxed according to a progress schedule with rates running from 10% to 25%. The top bracket went from 40% in 1997 to 30% in 1998 to 25% since 2000. In 2001, the personal exemption level equaled six times the average income in Honduras whereas the threshold for the 25% bracket was 36 times the average income (down from over 100 times the average in 1997). Social security taxes are also collected. No distinction is made for tax purposes between individuals and businesses. Agricultural activities and industries classified as "basic" receive favorable depreciation rates. The corporate tax rate is 15% on the first L100,000 of taxable income and 35% on the excess. The main indirect tax is a value-added tax (VAT) introduced in January 1976 with a standard rate of 3%. In 2002, the standard rate was 12%, with an increased rate of 15% applied to some items. Excise taxes are imposed mainly on beer and cigarettes, but also on imported matches, soft drinks, imported sugar, and new motor vehicles. New industries are exempted from income and production taxes and import duties for up to 10 years. |
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