Deeds, not words: Honduras is prepared to attract more investments (*)
Within the structure of the National Investment Promotion Program, Honduras has defined a new Legal and Institutional framework to attract and protect investments.
By means of this program the country offers to domestic and foreign investors a package of laws among which we find The Law for the Promotion and Protection of Investment and the PPP's Law.
With The Law for the Promotion and Protection of Investment that has been recently approved by the National Congress and has been signed by the President of the Republic during the event "Honduras is Open for Business," the state declares the promotion of investment as a primary concern.
This law provides new tools that enable investors with exceptional facilities to initiate and undertake their investments such as the "Foreign Investment Single Window" which allows a single point to produce all the information and services needed for investment, as well as the completion of formalities related to the establishment and expansion of endeavors.
The new law is structured in three parts: investment protection, promotions and incentives.
One of the characteristics of the law is that it is generally applicable to both nationals and foreigners, except for some provisions that are strictly applicable to foreigners, for example the issue of legal residence as a foreigner. The law in general covers both large and small businesses.
The law creates mechanisms providing different tax incentives, depending on three factors: the undertaken activity; the region where the investment is located and the state's interest in the particular investment.
Furthermore, the National Investment Board is being established to meet various purposes, including promotion and development of private investment.
The law aims to assure complete legal certainty to the investors by providing full guarantees to property rights in the country.
Another important aspect of the law is the creation of effective, simple and reliable dispute resolution alternatives.
On the other hand, the new Law on Promotion of Public Private Partnership (PPP) which has been adopted in August 2010 allows public-private participation in the implementation, development and administration of public works and services. This law entails an exceptional variety of arrangements for participation and diversity of options in state contributions. This contribution offers a wide array of important...