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Honduras is a Central American nation with CAFTA-DR trade benefits, free trade zone incentives, and growing manufacturing sector, particularly in textiles and apparel.
Region
CENTRAL AMERICA
Corporate Tax
25%
Setup Time
3 weeks
Currency
HNL
Positioned between Guatemala, El Salvador, and Nicaragua with both Caribbean and Pacific coastlines, Honduras has carved a niche as a manufacturing center for US-bound products. The combination of CAFTA-DR trade benefits, developed free trade zone infrastructure, and competitive labor costs has attracted substantial investment.
Life in Honduras centers on a few key areas. Tegucigalpa, the capital, sits in mountainous terrain. San Pedro Sula drives much of the country's manufacturing economy. The Bay Islands offer Caribbean diving and beach lifestyle.
The population of approximately 10 million is predominantly Spanish-speaking, with English common on the Bay Islands.
Healthcare is basic, with private facilities in major cities providing adequate care. Safety varies significantly by area—Honduras has faced serious gang violence, though tourist areas function with appropriate security measures.
Honduras has built a substantial manufacturing sector through free trade zones. The corporate tax rate of 25% applies to standard companies, but free zone operations enjoy significant exemptions.
The zones have attracted investment in textiles, apparel, and automotive parts. CAFTA-DR provides preferential US market access.
Company formation requires minimum capital of USD 5,000. Formation typically takes three weeks.
Foreign ownership is permitted at 100% in most sectors. Banking functions for domestic operations.
Honduras's free trade zone system offers exemptions on corporate income tax, import duties, and various other levies for 10-20 years. The zones have developed supporting infrastructure including workforce training programs.
Security is Honduras's primary challenge. Infrastructure varies significantly. The Honduran lempira is a small currency with limited international use.
Hurricane exposure is real—Honduras lies in the Caribbean hurricane belt. For manufacturing operations serving US markets through established supply chains, Honduras offers developed infrastructure and competitive costs.
Local: S. de R.L.
Local: S.A.
Local: Sucursal
| Corporate Tax Rate | 25% |
| Personal Income Tax Rate | 25% |
| VAT / Sales Tax | 15% |
| Capital Gains Tax | 10% |
| Withholding Tax | 10% |
| Reduced Corporate Tax Available | No |
| Non-Resident Withholding Exempt | Yes |
| Tax Treaty Network | No |
| Banking Access | MEDIUM |
| Financial Privacy | MEDIUM |
| Currency Controls | NONE |
| Local Bank Account Required | No |
| Non-Resident Bank Account Allowed | Yes |
| Physical Presence for Banking | No |
| Banks Restrictive (High Risk) | No |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Local Bookkeeping Required | No |
| Mandatory Audit | No |
No dedicated crypto licensing framework in Honduras. Cryptocurrency activities are permitted but unregulated.
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $500,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A |
| Business Plan Required | Business plan required |
| Personnel Required | Management team |
| Insurance Required | No |
| Insurance Details | Bank guarantee required |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 2 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Ministry maintains casino records |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Gaming Commission or equivalent |
| Licensing Fee | $50,000 |
| Licensing Fee Details | Standard gambling licensing |
| Permitted Business Models | Casino, Sports Betting |
| Permitted Activities | Land-based and online gambling |
| Restricted Activities | Varies by jurisdiction |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | No |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $300,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF guidelines |
| Business Plan Required | Comprehensive business plan |
| Personnel Required | Qualified management, compliance officer |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity required |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 2 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Central Bank registry |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Central Bank |
| Licensing Fee | $0 |
| Licensing Fee Details | Varies by license type |
| Permitted Business Models | Banking, EMI, Payment Services |
| Permitted Activities | Banking, payment services, lending |
| Restricted Activities | Deposit taking requires full banking license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |