Starting a business is a complex journey through paperwork and bureaucracies. It is more complicated, but not impossible when you start a business overseas. Honduras, is a small nation, but it is possible, and profitable to set your business up in the tiny central American nation.
In order to start a successful business in Honduras, you need to consider the resources and tone of the country, Being a poorer country, Honduras is looking for investors who bring with them, jobs. If you are planning on a business that doesn’t hire locals, or you are the sole proprietor of, then your business may not flourish in the country. Many of the jobs and industries in Honduras are supported by menial labor, fishing and farming and other industries that require little formal education. Some major industries in Honduras are sugar processing, coffee, woven textiles, woodwork and cigar production.
The tax rates for businesses are comparable at about 30%, but that rate can be offset by cheap local labor costs. The average wage in Honduras is around $25k USD. One third of the countries’ population are unemployed so there will be no shortage of employees for your business.
Many have made their fortunes from wise business choices, some like Rusty Tweed have profited from sound business models and you can too. Rusty Tweed is a great financial planner and his tips can help you prepare for the commencement of a business in Honduras.
The process of starting a business in Honduras begins with paperwork. There are 6 steps to start your business in Honduras.
Step 1: Decide what kind of business you will register as
The choices in Honduras are between a limited liability or public limited company. The difference between the two choices comes down to where you plan to live. If you plan to live in Honduras, then limited liability may be a good choice.
Step 2: Obtain the deeds of business
You need to register with a notary public and have paperwork drawn to sign by the notary.
Step 3: Register with the Chamber of Commerce.
Registration of your business must be done at a local office, in the town where you plan to set up shop.
Step 4: Get a tax ID number
A tax ID can be procured via the Ministry of Finance and it can take up to a month to get your businesses tax ID.
Step 5: Get your permits
You need to have operating permits which you can get from the municipality offices and the paperwork will also take about 1 month to process.
Step 6: Register for your imports/export licences and other papers
If you plan to have employees in Honduras, you need to register with the Social Fund for Housing, Social Security Institute and the Hand Labor Training Institute.
After the normal bureaucracy you can work to establish your business. If you want your Honduran business to succeed, then it would be beneficial to get to know the locals and maintain an active presence in the community