By: Elia López
In order to attract investment to Honduras, the National Investment Council (CNI) was created through decree number 80-1992, Investors Law, amended through decree number 51-2011, Law for the Promotion and Protection of Investments.
The State of Honduras, through the National Investment Council, aims to create adequate and attractive conditions for investors.
The CNI offers various economic and financial services to support investors, such as the guarantee in the treatment of foreign investors, which includes the protection of market access to persons who establish their investments in Honduras; the realization of transfers abroad of their profits, capital gains, dividends, royalties and considerations for the use and transfer of technology of their properties, or the total of their investments; access to credit in the financial system on equal terms with nationals; it also provides information on the prioritized sectors with a territorial approach in order to facilitate knowledge of the potential of each region.
PRIORITY INVESTMENT SECTORS PROMOTED BY THE CNI:
Main prioritized sectors
- Agribusiness
- Tourism
- Intermediate Manufacturing
- Housing
- Textile
Other Prioritized Sectors
- Construction
- Forestry (forestry)
- Logistics
- Energy
- Business Services
In order to ensure the permanence of existing investments, CNI provides pre-, during and post-investment services, allowing the investor to accurately plan financial and market planning. Additionally, it provides adequate information and analysis of macroeconomic conditions for the investment to ensure successful operations in a competitive, stable and growing environment.
The legal services of support to the investor are the most important vehicle that the CNI offers to start up investments, generating a commitment between the State and the investor, by means of which the rules in fiscal, state and municipal matters are established, which will govern the investment for a determined period of time and that constitutes law between the parties. In this type of commitment, it is agreed that the agreed tax and municipal regime will not change, that no new taxes will be imposed in the aforementioned regimes and that the benefit will last for 15 years, as a general rule.
This procedure allows the interested parties, among other things, to develop projects or investment activities on real estate, to prevent conflicts over real estate and to establish guarantees for the conclusion of projects on disputed real estate.
In order to enjoy these benefits it is necessary that the corporation, its partners, and the natural persons, national or foreign, that are part of it, register with the National Investment Council (Consejo Nacional de Inversiones). This is done in order to be able to identify the investments made or to be made in the country and to create the support link to speed up the bureaucratic procedures, or in some cases to eliminate them completely.
BENEFITS FOR REGISTERING AS AN INVESTOR:
- Investor Registration Certificate, which, in the case of foreigners, facilitates their immigration procedures;
- Free legal assistance in investment and business formalization;
- Incorporation to the National Registry of Investors of the CNI;
- Annual remittance of updated information on economic-financial, tax and legal issues;
- Invitations to training events on the opening of businesses and topics related to private investment;
- Attention to complaints related to investor protection;
- Guidance on investment projects;
- Pre and post investment services;
- Assistance in obtaining complementary services for the operation of your business.
The National Investment Council has proven to be an excellent tool to attract, facilitate, accelerate, and protect investment in Honduras, promoting and strengthening the sectors, both prioritized and potential, and ensuring sustainable economic growth. Its work follows a path that in the short and medium term will continue to help detect and exploit the country’s potential, identifying and promoting areas where Honduras can be more competitive. In addition, with the advice of a law firm such as Consortium Legal, which has expert lawyers in different areas of law, it will be a pleasant experience for the investor to develop a project in the country.