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Legalization of Micro, Small, or Medium-Sized Enterprises in Honduras
[/vc_column_text][us_separator][vc_column_text]The word "Entrepreneur" according to some sources is a person with the ability to generate a business idea, it can be their own, obtaining the opportunity from this idea to create their own business in the form of a company. It is also understood that by having a MSME in particular, this mass is a generator of employment in our country. Generally, an entrepreneur has the following characteristics: Passion, Creativity, responsibility, embrace of changes, vision, courage, organization and above all leadership. If you are an entrepreneur, whose company is operating, do you know how to legalize your business? It is important to be able to operate legally and under the laws of our republic to follow the appropriate legal mechanism for your business. In the first instance, it is advisable to determine if your business will be managed solely by you, or if there are more people involved in it. In the first instance, if you are only one owner of the company, then you must legally incorporate it as an Individual Merchant in a public deed. If there are more partners, you must proceed to execute a partnership deed, declare yourself a legal entity, and subsequently register it in the corresponding Commercial Registry, as is the case in Honduras. Below is an outline of how to legally incorporate as a company: [/ vc_column_text][us_image image="9316" size="full" align="center"][us_separator size="small"][vc_column_text]Once you have obtained the deed registered with the Chamber of Commerce, you can proceed to:
- Request operating permit
- Obtain your company's tax registration.
Let's talk a little about the jurisdiction in which a company can be incorporated. An MSME corporation can be ideal for an offshore startup: This allows the company's registered office to be incorporated in an offshore jurisdiction, taking advantage of the various benefits these jurisdictions offer. Depending on the startup's objectives, different countries can be considered for incorporating the company. The main aspects to consider are:
- Tax benefits of the jurisdiction (tax imposition);
- Good reputation of the country to attract foreign investment;
- Stable policy;
- Flexible corporate law;
- Facilities for opening bank accounts.
Each jurisdiction offers distinct benefits. Choosing the most convenient one will intrinsically depend on the partners' expectations and the business's direction. Now, if you are not Honduran, my dear reader, and you want to run a business in our country but are still unsure, I will give you some reasons that may motivate you to choose us as the country in which to start your business: 1. According to Legislative Decree No. 284-2013: Law for Job Creation, Entrepreneurial Initiative Promotion, Business Formalization, and Protection of Investor Rights (along with its Regulations according to Executive Agreement 679-2014); 2. According to Legislative Decree No. 145-2018: Law to Support Micro and Small Enterprises: The processes for establishing, promoting, and growing new businesses have been simplified, attempting to overcome bureaucratic barriers. 3.- Where the registration of new companies is sought in no more than 48 hours, including benefits such as: opening a bank account and obtaining a RTN as soon as possible. Now, what are the types of companies that Honduran law allows? Let's see: Types of Commercial Companies (Articles 13, 38, 58, 66, 90, Commercial Code): • 1.) Individual Merchant: The natural person declares the creation of their company to engage in one or more commercial activities. • 2.) Commercial Company: The person or persons grant the document of incorporation of the commercial company, which can be collective or sole proprietorship. And to conclude with the topic, it is important to highlight the benefits of formalizing MSMEs: 1.) It facilitates access to credit; 2.) It enables the expansion of commercial operations; 3.) Obtaining a RTN and enabling the Invoicing Regime. My dear reader, would you like to know more information like this? You can write to me at hsalgado@lexincorp.com and I will be happy to answer your call. We are a firm that provides comprehensive legal advice to its clients with the commitment to provide continuous improvement in the quality of our services.
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