How to form a Honduran Corporation in the Bay Islands of Honduras
To form a Honduran corporation in Roatan, there are 2 options:
a.) Unipersonal Corporation with one single shareholder.
b.) A corporation with two or more shareholders.
When and why should a foreign investor form a Honduran Corporation:
a.) Buying Real Estate
An investor that wishes to purchase property in the Bay Islands: we always advise to buy through a Honduran corporation formed entirely by Hondurans which transfer the stock certificate by simple, blank endorsement as allowed by the Honduran Commerce Code of Law because in Honduras there are restrictions for foreign ownership of land at a personal name situated along neighboring countries or coastlines of both seas in an extension of 40km towards the interior of the country. Legal Fundament: Constitutional Article # 107. Articles 126 and 480 through 492 Honduras Commercial Code of Law.
b.) Establishing a Business
When establishing a business, we also advise our foreign clients to invest through a corporate structure therefore being protected by the Limited Liability Legal Fence.
c.) Establishing a business and buying Real Estate:
When buying a property and establishing a business at the same time we always advise the formation of 2 corporations: One that will hold land and another that will hold the business therefore protecting the Real Estate from for example Labor Law Legal Suits deriving from the business operations and relations with third parties.
In the Bay Islands of Honduras, a foreigner in his personal name can only own one single property and only and specifically for residential purposes with an area no larger than 3,000. m/2 (approx. 0.72 acres). Legal Fundament: Legislative Decree # 90-90
For more information please contact:
Lawyer & Exequatur Notary Alex Villela F: