The corporation is a form of business organization recognized in recognized in Honduras. According to Honduran law, a corporation is one that exists under one name and has a founding capital divided into shares, whose partners limit their liability to the payment of the shares they have subscribed.
This type of companies are constituted by simultaneous foundation which consists of the appearance before a notary of at least two natural or juridical persons through their representative, who grant the corporate deed, formalizing themselves as shareholders or partners and creating the bylaws of the company and subscribing the corresponding shares that must be paid at least twenty-five percent (25%) of the value of each one. In the articles of incorporation, the founding partners establish aspects such as the name of the company, its corporate purpose, domicile, duration, capital stock which may not be less than twenty five thousand Lempiras (L 25,000), number and value of the shares, administrative and supervisory bodies, as well as the powers of each body. Once the corporate deed is granted, the notary registers it in the Mercantile Registry so that the corporation acquires legal personality. The simultaneous foundation is the most used procedure to incorporate corporations in Honduras, since it allows the founding partners to have greater control over the definition of the bylaws; however, there is another way to create or incorporate a corporation, and that is through or by public subscription, in this case, the founding partners personally draft and deposit in the Public Registry of Commerce, the program or draft of the bylaws of the corporation, accompanied by the authorization of the Secretary of State in the Office of Finance to offer the shares of the corporation to third parties through a public offering. Once the shares have been subscribed and paid in full, the company is formally incorporated before a notary public. The public subscription of shares allows a greater participation of third parties in the capital stock of the corporation. By offering the shares to a wider group of investors, it is possible to attract greater capital contributions for ventures that require it.
Administration of the Corporation.
