How to Register as a Sole Trader (Comerciante Individual) in Honduras
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Honduras is located in Central America, between the Pacific Ocean and the Caribbean Sea (Atlantic). The capital city is Tegucigalpa, the official language is Spanish, and the lempira (HNL) is the official currency.
Ever since the Maya civilization, agriculture has been highly developed in this region, and it also plays an important role in the country's economy today. Honduras is known for its rich natural resources, including minerals, coffee, tropical fruit, and sugar cane, as well as for its growing textiles industry, which serves the international market.
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
What is Comerciante Individual?
A self-employed person who runs their own business as an individual is considered a sole trader (Comerciante Individual). A trader carries out activities such as the production of goods or service providing. The liability is unlimited, which means that the owner is liable for their business' debts with all their fortune. This business form is often chosen by the people who plan to operate a small business or a startup. It is the cheapest and the easiest form to establish and run. Before you engage in any commercial activity, there are some regulations you have to follow in order to register your business.
The registration process in Honduras is somewhat complicated, but don't worry. We have created this guide to help you with the registration. Just follow these steps:
1. Declaration and Publication: To make an appointment, you should register on Mi Empresa En Linea website. After registering, click on Solicitud de Comerciante, then Crear Nueva Solicitud. It will require some basic information about you and your business. If the application is approved, they will make an appointment at the nearest Registry. There you will receive a validation document. You can also make an appointment at any public notary in Honduras. You will need to bring an identification document (ID card) and a Taxpayer verification document. The documents you will receive are Public Deed testimony and Publication notice.
2. The next step is to apply at Commercial Register. Before the application, you should calculate and pay the fee. The fee can be calculated online or at the Commercial Register office, and it depends on your starting capital. After the payment, you can apply for business registration. Along with the registration form, you should submit the following documents:
- Public Deed testimony
- Publication notice
- Fee payment check
- Identification document
If everything is in order, you will be registered in the Commercial Register and receive the registration number.
3. After the registration with the Commercial Register, you need to register with the Chamber of Commerce and Industry (CCIT). Another fee shall be paid, which also depends on your capital. Next, fill out the registration form given by an officer in charge and submit it along with the payment check. You will obtain the CCIT registration number and an Establishment receipt. This registration is valid for five years.
4. Your business also needs to be registered for tax purposes. This can also be done at the Chamber of Commerce and Industry by filling and submitting the form DEI-410.
5. There is one last step to register your business. Go to Alcaldía municipal del Distrito Central (AMDC). There, you should request the proof of compatibility and the Operating Permit application form. The officers will assist you in filling the forms.
Taxes in Honduras
The individual income tax rate in Honduras varies from 15% to 25%, and it depends on your annual income.
The following tax brackets apply:
- Up to HNL 199,039.47 - 0%
- From HNL 199,039.48 up to 303,499.90 - 15%
- From HNL 303,499.91 up to 705,813.76 - 20%
- HNL 705,813.77 and over - 25%
If you're looking to add independent contractors from Honduras to your global team, check out all the necessary information here.