How to Register a Sole Proprietorship (Comerciante Individual) in Honduras

Setting up as an independent professional in Honduras is a practical choice for freelancers, consultants, and small business owners who want a simple way to operate legally. A sole proprietorship lets you start trading quickly without the complexity of forming a company, keeping administration light, and costs low. Even so, there are key steps to follow — including registration with local authorities and, as well as compliance with VAT and electronic invoicing rules. The process can involve some paperwork, but it remains one of the easiest and most affordable paths to managing your own business day to day.

Disclaimer: This article is for informational purposes only and is not a substitute for legal or tax advice. Always consult official sources or professionals before proceeding.

What is a sole proprietorship in Honduras?

In Honduras, a sole proprietorship is commonly called a comerciante individual (or persona individual). In practice, it may also be referenced as:

• Sole trader
• Self-employed worker
• Independent contractor

These all refer to the same basic model: one person operating a business without forming a separate legal company.

How does a sole proprietorship (comerciante individual) work in Honduras?

Comerciante individual vs. other business structures in Honduras

While the comerciante individual is the simplest and most popular option for self-employed workers, Honduras also offers alternative structures such as a Sociedad de Responsabilidad Limitada (SRL) or Sociedad Anónima (SA). The table below compares the main features so you can decide which suits your business needs best.

Step-by-step guide: How to register a sole proprietorship in Honduras

Step 1: Check your eligibility

Honduran citizens can freely register as comerciantes individuales, while residents with legal status may do so as long as their residency permits economic activity. Foreign nationals who are not residents must first obtain an immigration or work permit that specifically authorizes them to operate a business or engage in self-employed work before registering.

Step 2: Choose your business name

You can use your personal name or register a trade name (nombre comercial). If using a trade name, confirm availability with your municipality’s business registry to avoid duplication.

Step 3: Gather required documents

Commonly requested documents include:

• National ID card or passport
• Proof of address
• Tax identification number / Registro Tributario Nacional (RTN)
• Completed municipal registration form
• Any industry-specific licenses, if applicable

Step 4: Register with the municipality and SAR

Apply for a Licencia de Funcionamiento (operating license) in person at your local municipal office or Registro Mercantil, which handles business licensing and trade name registration. Then register with the SAR to obtain your RTN and fulfill your tax obligations. While SAR offers an online portal, initial registration and identity verification are typically completed in person. SAR oversees both income tax (ISR) and VAT (ISV) registration for sole proprietors.

Step 5: Pay registration fees and contributions

Once you’ve submitted your forms, you’ll need to pay the required municipal fees for your Licencia de Funcionamiento. You may also need to pay a small administrative charge for SAR registration and, if your expected income is substantial, make advance quarterly tax payments (“pagos a cuenta”). These payments are credited toward your annual income tax liability.

Step 6: Fulfill post-registration obligations

After registration, you must begin issuing compliant invoices through SAR’s invoicing system, keep full accounting records, and file your taxes regularly. Renewal of your municipal license may be required annually. If your turnover exceeds VAT thresholds, you’ll also need to submit monthly VAT declarations.

Financial and tax obligations for sole proprietors in Honduras

You're responsible for:

• Income tax (ISR): You pay progressive income tax on net business income at 0 %–25 %, depending on annual profits. File annually with SAR by April 30 and make quarterly advance payments if applicable.
• VAT (Impuesto sobre Ventas): Standard rate is 15 %; certain goods and services are taxed at 18 %. Registration is required if your annual turnover exceeds HNL 250,000. VAT returns must be filed monthly through SAR.
• Social security contributions: If you work as your own employee or hire staff, you must register with the Instituto Hondureño de Seguridad Social (IHSS) and make contributions.
• Record-keeping: Maintain detailed records of invoices, receipts, and expenses for at least five years.
• Invoicing: Larger taxpayers must use SAR’s electronic invoicing system (Factura Electrónica) with sequential numbering and full tax data.

Launch your contracting career and stay compliant with Deel

Registering as a sole proprietor gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.

FAQs

What is the minimum capital required to start a comerciante individual in Honduras?
There is no minimum capital requirement.

Do comerciantes individuales need to register for VAT?
Yes, if annual turnover exceeds HNL 250,000 and the business activity is subject to VAT.

How much are the standard monthly or annual contributions?
Municipal and SAR fees vary by location. IHSS contributions depend on income level; employers also contribute to pension and health programs.

Can a comerciante individual hire employees?
Yes. You must register as an employer and make mandatory IHSS and RAP contributions.

How long does it take to register as a comerciante individual in Honduras?
Typically, a few days to a couple of weeks, depending on the municipality's workload.

Can foreign nationals register as comerciantes individuales in Honduras?
Yes, provided they have the proper residence or work permits.

Do comerciantes individuales need a separate business bank account?
Not mandatory, but strongly recommended for accounting clarity.

What happens if I stop working as a comerciante individual?
You must cancel your municipal license, file final tax returns, and deregister with SAR.

Are there government incentives or reduced rates for new comerciantes individuales?
Not nationwide, but certain municipalities offer temporary fee reductions or simplified regimes.

Can I use Deel as a comerciante individual to get paid by international clients?
Yes. Deel lets Honduran sole proprietors receive global payments in multiple currencies with transparent rates.

Does Deel generate compliant invoices for comerciantes individuales?
Yes. Deel issues invoices that meet Honduran requirements, including RTN and VAT fields.

Can Deel help me with taxes as a sole proprietor in Honduras?
Deel provides downloadable tax reports and payment histories to assist with annual filings.

Does Deel offer contracts for freelancers and comerciantes individuales?
Yes. Deel provides locally compliant contract templates for safe, professional client engagements.

Can I access benefits through Deel as a comerciante individual?
Yes. Deel offers optional perks like health coverage and retirement savings plans to add security to your freelance work.