International Company Registration Process in Indonesia

Corporate Secretary Service Indonesia – Setting up a business in Indonesia requires a solid understanding of the company registration process. Both budding entrepreneurs and seasoned investors will face various legal complexities and procedures to navigate. Each step requires careful consideration, from choosing the proper legal structure to navigating regulatory requirements. Amidst these complexities, understanding the intricacies of company registration is crucial to laying a solid foundation for future growth and success. In this article, we will take an in-depth look at the company registration process in Indonesia, explaining essential procedures and providing insights to empower businesses to enter and expand the market.

Regarding business development, the Indonesian market offers competitive value and opportunities. Indonesia is one of the most promising countries in which to do business due to its large workforce, strategic position, and abundant natural resources. In addition, the government has implemented various reforms to attract foreign investors and simplify the process of starting a business in the country.

However, many complicated factors exist for foreigners looking to do business in Indonesia. For example:

1. Determine whether your company is a representative office or has direct foreign investors by determining the type of legal entity it represents.
2. Identify the industry in which your company’s legal entity will operate.
3. Evaluate whether foreign investment is permitted in this sector and, if so, determine the percentage of ownership allowed.

Continue reading the article below to learn more about Indonesia’s International Company Registration Process.

How to Start a Foreign Company in Indonesia

You need to know and understand the minimum capital requirements, regulatory framework, organizational structure, mandatory activity reports, tax laws, employment in Indonesia, and others. Here is how to set up a foreign business in Indonesia:

As a representative office, Foreign Business Entity

This type of company is more suitable to be established early. Among its advantages are:

1. A quick and straightforward operational process.
2. Does not require significant investments or capital deposits.
3. Minimum documentation requirements: only income tax reporting requirements for officers and office space tax apply.

Read Also: Understanding Imports, Their Benefits, and Types

However, this method may need to be more flexible for some businesses. Your company will have a legal umbrella in Indonesia. Still, it cannot take profits from sales or engage in business transactions. So, a representative office is better established for market research and marketing purposes before setting up a full-fledged legal entity.

PT PMA Foreign Business Company

The law regulates establishing a foreign company in Indonesia through Penanaman Modal Asing (PMA). A PMA is a limited liability company (PT). Meanwhile, funds or investments from foreign entities are referred to as foreign direct investment (FDI). FDI is regulated in Indonesia by:

1. Investment Law No. 25/2007.
2. Law No. 40/2007 on Limited Liability Companies.
3. Presidential Regulation No. 39/2014 on the List of Business Fields Closed and Open under the DNI. Negative Investment Disclosure.

Any company with foreign-owned shares is required to register as a PMA. Meanwhile, the DNI lists all company sectors available for complete ownership and those restricted to certain foreign investments.

An investment agreement from the Investment Coordinating Board (BKPM) is a requirement for any foreign company registered in Indonesia. After that, you must still handle some permits with the local government. Consider hiring a local consultant like PortCorp to help you with licensing and legal issues. They will be accommodating.

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 Company 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!