Can Foreigners Own Business in Indonesia?
Corporate Secretary Service – Indonesia, it is a country that makes a lot of businessman around the world interested to invest and build a business company. If you want to start a business in Indonesia, you have to meet certain requirements, especially if you are a foreign citizen. Foreigners must meet several criteria to establish a business in Indonesia. You must follow the administrative requirements to keep your business legal. Here’s the info you need to know about the criteria for foreigners to have a business in Indonesia.
To own a business in Indonesia, foreigners must comply with Law Number 25 of 2007 and Government Regulation Number 23 of 2010. Here are the 5 things foreigners should consider when setting up a business in Indonesia.
1. To run a business legally, foreigners must ensure their business is legally registered
You need to have a business license, company registration, and other permits. Foreigners must get a business license from the Minister of Law and Human Rights or a designated official. These letters prove that the business meets government requirements and regulations. Before opening a business, foreigners must know the Negative Investment List (Daftar Negatif Investasi – DNI). Some business fields are open to foreigners with certain conditions, while others are open without any conditions. If your business is on the DNI list of closed fields, you won’t get a license.
2. Business Identification Number / Nomor Induk Berusaha (NIB)
Foreigners must have a Business Identification Number / Nomor Induk Berusaha (NIB). Foreigners can get an NIB from the BKPM because they are the ones who issue NIB. The NIB includes business information, such as licensing data, tax identification, and other relevant details. The NIB lets the government recognize and monitor businesses. NIB is also used for other official purposes, such as opening bank accounts, applying for loans and tax purposes.
Read Also: How Much Does it Cost to Register a Company in Indonesia?
3. Capital
Foreigners who want to own a business in Indonesia must invest capital. You need at least USD 1 million to start a business, unless the law says you don’t. Foreign capital must have a BKPM license and pay dividends according to the law.
4. Organizational Structure
Foreigners must have a clear business organizational structure, with at least one director and one director commissioner. The commissioner must also have an NPWP or TIN (Tax Identification Number) and an Indonesian ID.
5. Tax Compliance
If you have a business in Indonesia, you must comply with all tax rules and regulations. This includes reporting and paying taxes regularly.
Don’t worry about developing your business by setting up a company in Indonesia, because Portcorp is here as a solution for your business. 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 for your business success in the future!
