Doing Business in Honduras (2025): Official Websites, Policy Updates and Practical Steps

This guide compiles the main Honduran government and department portals relevant to foreign companies operating locally—covering company registration, taxes, labor law, social security and visas—and summarizes 2025 policy trends, step-by-step operational actions and practical precautions . Use this as a practical checklist and verify links and legal interpretations with local counsel or the issuing authority.

Key government portals (at-a-glance)

2025 policy trends and official interpretations (high level)

• Tax digitalization: SAR continues to expand electronic invoicing (e-invoice) and online filing. Expect stricter validation steps and heavier enforcement of late-filing penalties.
• Enhanced compliance and AML scrutiny: Authorities are increasing due diligence on cross-border payments and beneficial ownership; foreign companies should strengthen Know‑Your‑Customer (KYC) and record-keeping.
• Labor enforcement: The Secretaría de Trabajo is prioritizing inspections of payroll, overtime and occupational safety—especially in export and manufacturing sectors.
• Visa and immigration digitization: DGME is expanding online application channels for some types of work permits and temporary residency, but in-person steps may still be required for biometrics.
• One‑stop registration: Honduras is accelerating single-window efforts to simplify incorporation and permit issuance—however, full automation is incremental by region and sector.

Practical step-by-step procedures

1) Company formation (typical path)

1. Decide legal form (e.g., Sociedad Anónima (S.A.), Sociedad de Responsabilidad Limitada (S.R.L.) or branch). Seek local legal counsel for tax and liability implications.
2. Reserve company name at the commercial registry or online portal.
3. Draft and notarize articles of incorporation, list directors and legal representatives.
4. Register the company with the Company Registry / Registro Mercantil and obtain an official registration number.
5. Apply for the Registro Tributario Nacional (RTN) at SAR (tax ID) and register for VAT if applicable.
6. Open a local bank account and, if required, register the investment with the Central Bank for capital inflows and repatriation rules.
7. Register employees with IHSS and set up payroll withholdings and employer contributions.

Key documents usually required

• Articles of incorporation / bylaws and notarized powers of attorney
• Identification documents for owners and directors (passports or national IDs)
• Proof of registered office address
• Bank confirmation of capital deposit (if required)

2) Tax registration and ongoing compliance

1. Obtain RTN at SAR and register for required taxes (income tax, VAT, municipal taxes).
2. Enroll in SAR’s electronic invoicing platform (Factura Electrónica) if your activity or turnover requires it.
3. File monthly VAT returns and periodic income tax prepayments; file annual corporate tax return within statutory deadlines.
4. Keep full transactional records and export/import documentation for audits.

3) Hiring and labor compliance

1. Register new hires with IHSS and enroll with relevant pension schemes if applicable.
2. Use written employment contracts that align with local labor law provisions on hours, overtime, leave and termination.
3. Maintain payroll records, pay minimum wage and legally required benefits (vacation, annual bonus where applicable).
4. Prepare for labour inspections: maintain occupational safety documentation and proof of social contributions.

4) Work visas and residency for foreign staff

1. Determine correct visa category (temporary work permit, residency for investors, or intra-company transfer).
2. Gather supporting documents: contract of employment, corporate registration docs, proof of qualifications and passport copies.
3. File with DGME and attend biometric appointments if requested; some processes begin online but end with in‑person verification.
4. Renew permits on time; non-compliance can affect both employee status and company operations.

Notes / Practical cautions

• Verify official URLs before submitting sensitive documents—use the main government portal (gob.hn) as an entry point to avoid fraudulent pages.
• Local representation: appoint a local legal representative with a registered address in Honduras for procedural service and communications.
• Currency & capital movements: confirm Central Bank and tax reporting requirements for cross-border capital transfers and dividends.
• Language and translation: official filings are typically in Spanish—use certified translations for key corporate documents.
• Deadlines and penalties: electronic systems can still have transitional issues—submit filings early to avoid fines.
• Data privacy: when sharing employee personal data cross-border, check Honduran data protection rules and secure consent where required.

Illustrative cases

Case A: Software exporter (US SME)

A US-based software company registered a Honduran S.R.L. to hire local developers. Key lessons: (1) Register for the RTN immediately so contractors can be paid; (2) enroll in e-invoicing for recurring sales to local customers; (3) use contractor agreements for flexible engagements but ensure labor law criteria do not reclassify contractors as employees.

Case B: Manufacturing investor

An Asian manufacturer used the national Single Window to coordinate customs, environmental permits and business registration. Early coordination with the investment promotion agency secured temporary incentives but required strict job-creation reporting and monthly tax compliance checks.

Checklist before market entry

1. Confirm corporate structure and register company name.
2. Obtain RTN and set up e-invoicing if needed.
3. Open bank accounts and register foreign investment with the Central Bank.
4. Establish payroll processes and register with IHSS.
5. Secure necessary municipal permits and sectoral licenses.
6. Plan immigration steps for foreign executives early (visa backlog possible).

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Where to confirm and next steps

This guide presents a practical roadmap but does not replace professional advice. Before filing, consult:

• A local corporate attorney for incorporation and contractual matters
• A licensed accountant or tax advisor familiar with SAR e-invoicing and reporting
• An immigration specialist for DGME procedures

Use the government portal (https://www.gob.hn) to find the definitive current links and contact points for each agency. Keep copies of all filings and receipts in country and off-site to meet audit and compliance requirements.