Due Diligence

Provides advice on how to perform due diligence and in what areas it is necessary for a U.S. company. Includes information on the U.S. Commercial Service International Company Profile service.

Last published date: 2019-10-13

U.S. companies should conduct legal, financial, regulatory and corporate due diligence before completing a commercial transaction or formalizing any agreement. Verifying the identity of a potential partner is a basic but important step.
Performing due diligence in Honduras, as in most of Central America, can be time-consuming and difficult. Before entering any trading relationships, it is important to visit the potential partner to see its operation and overall business environment.

There are very few sources of independently verifiable information about companies and individuals. There are no publicly listed Honduran companies and Honduran firms rarely publish information about their officers, sales or financial information. Most companies are sole proprietorships and partnerships, and business generally is conducted based on personal reputation and contacts.

Companies should request bank and trade references from potential agents and customers. The U.S. Department of Commerce in Honduras  can assist your company in collecting  information  on  Honduran  companies  through  the  International  Company Profile  (ICP)  service,  which  can  be  ordered  through  any  U.S. Office of the U.S. Commercial Service (U.S. Export Assistance Centers).

Companies should also consult with their own U.S. banks for information on Honduran banks, most of which have correspondent banking relationships with financial institutions in the South and the East Coast.