For those exploring individual business status in Honduras, this post outlines the availability and specific tax conditions attached to the “Comerciante Individual” (Individual Merchant) status as applied in 2025. We cover registration requirements, tax rates, invoicing duties, and compliance expectations—all based on current, officially available data.
Availability of Sole Proprietorship Status in Honduras
Honduras offers a well-established sole proprietorship framework through the “Comerciante Individual” status. This legal form is widely accessible, allowing regular citizens to conduct business activities, invoice clients, and pay taxes without creating a separate corporate entity. Honduran authorities actively support this classification, making it the most streamlined option for individuals looking to operate on their own.
Key Characteristics of “Comerciante Individual” Status
- Name: Comerciante Individual (Individual Merchant)
- Legal Status: Sole proprietorship; owner and business are not distinctly separate
- Who Can Register: Any citizen wishing to operate a business as an individual
- Governing Authority: Servicio de Administración de Rentas (SAR), the Honduran tax office
Registration Requirements
To obtain “Comerciante Individual” status, individuals must register with the Servicio de Administración de Rentas (SAR). This involves obtaining a Honduran Tax Identification Number (RTN). Once registered, the proprietor is authorized to issue invoices (facturas) and operate commercially under their own name.
Taxation Overview for Comerciante Individual (2025)
Taxation for sole proprietors in Honduras falls under the standard income tax regime for individuals. The system is progressive, with tax rates increasing by income bands.
| Taxable Income Bracket (HNL) | Equivalent (USD)* | Tax Rate (%) |
|---|---|---|
| Up to HNL 198,996.60 | $8,075 (USD) | 0% |
| From HNL 198,996.61 to HNL 303,994.80 | $8,075 – $12,330 (USD) | 15% |
| From HNL 303,994.81 to HNL 707,991.60 | $12,330 – $28,725 (USD) | 20% |
| Above HNL 707,991.60 | Over $28,725 (USD) | 25% |
*USD conversions are approximate, using a reference exchange rate of 1 HNL = 0.0406 USD (2025).
VAT (ISV) Obligations
Comerciante Individual status subjects the proprietor to standard VAT (Impuesto Sobre Ventas, ISV) requirements if they engage in taxable activities. The applicable rate is 15%. VAT registration and periodic filings are mandatory if revenue thresholds or activity types apply.
| Obligation | Description | Rate (%) | Responsible Party |
|---|---|---|---|
| VAT (ISV) | Standard value-added tax on sales of goods or services | 15% | Comerciante Individual |
| Invoicing | Obligation to issue facturas for each transaction | N/A | Comerciante Individual |
Compliance and Practical Considerations
Honduran law requires that every Comerciante Individual keep orderly records, issue invoices, and submit annual tax declarations to SAR. If subject to ISV, periodic VAT filings are mandated. Failure to comply may result in administrative sanctions or fiscal penalties. Recordkeeping and compliance are essential, as audits can occur at any time.
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Pro Tips: Managing Sole Proprietorship in Honduras
- Set up your SAR registration and obtain your RTN as early as possible to avoid delays in starting operations.
- Always issue legal invoices (facturas), since failure to do so can lead to substantial fines during inspections.
- Track all business expenses thoroughly to optimize deductions when filing your annual personal income tax declaration.
- If selling goods or services subject to ISV, confirm VAT registration status and adhere to monthly/quarterly filing requirements.
- Maintain digital and paper records for at least five years in case of a tax audit.
The Comerciante Individual status in Honduras remains an accessible and used path for those seeking a straightforward, individual business option. With clear income tax bands and a standard VAT rate, most compliance expectations are predictable with some planning. As always, careful documentation and punctual filing help maintain smooth operations and reduce risk.