5 Criteria for Foreigners to Have a Place of Business in Indonesia
Corporate Secretary Service Indonesia – In establishing a business in Indonesia, there are several requirements that must be met, especially for Foreign Citizens (Warga Negara Asing / WNA). There are several criteria that must be met by foreigners in order to establish a place of business in Indonesia. Administrative requirements must be followed to establish a business so that the business being run remains legal.
In order to better understand the criteria for foreigners to have a place of business in Indonesia, here is the information for you.
Criteria for Foreigners to Own a Place of Business in Indonesia
In establishing a business in Indonesia, foreigners must comply with Law Number 25 of 2007 concerning Investment and Government Regulation Number 23 of 2010 concerning the Implementation of Investment. The five things that foreigners need to consider when they want to set up a business in Indonesia are as follows.
1. Legality
The first criteria that must be met by foreigners to ensure that their business runs in accordance with the procedure is to have clear business legality. The legality letters that must be owned include the deed of establishment, company registration certificate, trade business license or Surat Izin Usaha Perdagangan (SIUP), and other permits required in accordance with the business to be run.
Most importantly, foreigners must ensure that they have obtained a business license from the Minister of Law and Human Rights or a designated official. These letters are proof of legality that the business being run has met the requirements and regulations set by the government. It should be noted that before opening a business, foreigners need to know the Negative Investment List (DNI) that applies in Indonesia because there are business fields that are open to foreigners with certain conditions and open without any conditions. This is important to do because if the business is included in the list of closed business fields in the DNI, the license will not be granted.
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2. Business Identification Number atau Nomor Induk Berusaha (NIB)
The next criterion is that foreigners must have a Business Identification Number (NIB). To obtain an NIB, foreigners can take care of it at the Investment Coordinating Board (BKPM) because BPKM is the one who has the right to issue NIBs. NIB includes important information about the business, including licensing data, tax identification, and other information required by the relevant agencies. With NIB, businesses can be recognized and monitored by the government. In addition, NIB can also be the basis for various official purposes, such as opening bank accounts, applying for loans, and tax purposes.
3. Capital
Foreigners who wish to own a business in Indonesia are required to make an investment. The minimum capital required is USD 1 million, except for certain sectors that can be exempted in accordance with applicable laws and regulations. Foreign capital must also have a license from BKPM, and dividends must be paid according to the law’s rules.
4. Organizational Structure
The next criterion is that foreigners have a clear business organizational structure, such as appointing at least 1 director and one director commissioner. The appointed commissioner must also have a Taxpayer Identification Number (TIN or NPWP in Indonesia) and an Indonesian Identity Card (KTP in Indonesia).
5. Tax Compliance
One more criterion that must be met by foreigners if they have a place of business in Indonesia is tax compliance. It is important to understand that every business, including those owned by foreigners, must comply with all applicable tax rules and regulations in Indonesia. This includes periodic tax reporting and fulfillment of tax obligations in accordance with the type of business and income earned. Thus, foreigners are required to submit financial and tax reports regularly in accordance with applicable regulations.
That is the information about five criteria for foreigners to have a place of business in Indonesia. Don’t worry about developing your business by setting up a company in Indonesia, because Portcorp is here as a solution for your business, also when you need Food & Beverages registration. Portcorp is your comprehensive corporate secretary service in Indonesia. With our presence, you can get a dedicated company secretary to support you to what you need. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now on +6221-5020-8090 for your business succeed in the future!
