Honduras

Ease of Doing Business in

Honduras

This page summarizes Doing Business 2014 data for Honduras. The first table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region Latin America & Caribbean
Income Category Lower middle income
Population 7,935,846
GNI Per Capita (US$) 2,070
City covered Tegucigalpa
Doing Business 2014 Rank Doing Business 2013 Rank*** Change in Rank
127 125 down -2

Doing Business 2014 DTF** (% points) Doing Business 2013 DTF** (% points) Change in DTF** (% points)
58.11 58.22 down -0.11
 

Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2014 Rank 162 DB 2013 Rank*** 158 Change in Rank down-4
DB 2014 DTF** (% points) 69.43 DB 2013 DTF** (% points) 69.33 Change in DTF** (% points) up0.10

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

Indicator Honduras Latin America & Caribbean OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

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Procedures (number)
13 9 5

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

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Time (days)
14.0 36.1 11.1

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

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Cost (% of income per capita)
45.3 33.1 3.6

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

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Paid-in Min. Capital (% of income per capita)
15.2 3.6 10.4
No. Procedure Time to Complete Associated Costs
1 Pay the initial capital and obtain the certificate of the deposit at a local bank 1 day no charge
2 Establish the company before a notary public, who will draw up the articles of incorporation 2 days notary fees of 5% until Lps.25,000 and 3% over Lps.25,000 of the capital.
3 Publish the registration notice in “La Gaceta”, the official journal or an ordinary newspaper 1 day US$35 for one advertisement in “La Gaceta”; $15 in a newspaper
4 Purchase the bar stamps from the Honduran Bar Association 1 day included in procedure 5
5 File the articles of incorporation with the Mercantile Registry at the Chamber of Commerce 2 days See procedure details
* 6 Apply for the tax identification code (Registro Tributario Nacional, RTN) 1 day (simultaneous with previous procedure) no charge
7 Acquire accounting and minutes books 1 day USD 180
8 Register with local and national chambers of commerce 1 day nominal fee
9 Apply for an operational permit (Permiso de Operación) from the municipal authorities 1 day Lps. 1,250
* 10 Register for Sales tax 2 days, simultaneous with previous procedure nominal fee
* 11 Register at Social Security Institute (Instituto Hondureño de Seguridad Social, IHSS) 3 days, simultaneous with procedure 9 no charge
* 12 Register at the Professional Training Institute (Instituto Nacional de Formación Profesional, INFOP) 1 day, simultaneous with previous procedure no charge
* 13 Register at Social Fund for Housing (Régimen de Aportación, (RAP) al Fondo Social de la Vivienda (FOSOVI)) 1 day, simultaneous with previous procedure no charge
* Takes place simultaneously with another procedure.

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

***Last year's rankings are adjusted: they are based on 10 topics and reflect data corrections.

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