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Offices| Aspect | Details |
|---|---|
| Timeline for Company Registration in Indonesia | The timeline for company registration in Indonesia is 2 to 3 Weeks |
| Fees for Indonesia Company Formation | The fees for Indonesia company formation start from $3000 |
| Benefits of Business Registration in Indonesia | Given below are the significant benefits of business registration in Indonesia-
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| Types of Structures for Business Registration in Indonesia |
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| Requirements of Company Incorporation in Indonesia |
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| Documents Required for Company Registration in Indonesia | Have a look at the documents required for company registration in Indonesia-
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| Procedure for Company Registration in Indonesia | Given below is the stepwise guide to apply for company registration in Indonesia-
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| How can we help you with Company Formation in Indonesia? | At Enterslice, we provide an effortless Indonesia company formation for non-residents:
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Get your company registration in Indonesia done easily and smoothly.
Indonesia is the fourth most populous country in the world, located in Southeast Asia, and is made up of over 17,000 islands. Known for attracting tourists from around the world, Indonesia has also evolved into a vibrant democracy with the largest and most dynamic economy in Southeast Asia. Company formation in Indonesia is an excellent choice for global entrepreneurs.
For businesses looking to expand internationally, company registration in Indonesia offers significant growth potential and opportunities for long-term commitments. With a growing economy and supportive business environment, registering a company in Indonesia opens doors to a diverse and expanding market. Additionally, as a member of the G20, Indonesia presents foreign investors with substantial growth prospects. Foreign investors consider Indonesia a hotbed for investment because of the reasons given below:
Diversify Presence in Asia
Access the ASEAN and South Asia Markets
Supplement their China Operations
Attractive Free Trade Agreement and Business Incentives
100% Reduction in CIT (Investments are Conducted in SEZ)
11% VAT- Standard Rate
The types of structures for Business Registration in Indonesia are as follows:
A foreign owned LLCs is a foreign investment company with foreign investors holding most of its shares. It allows foreign entrepreneurs to operate without local partnerships. Therefore, PT PMAs (Penanaman Modal Asing) allow 100% foreign ownership in a contract to Perseroan Terbatas (PTs), which require some degree of local ownership.
A representative office is a business structure model that does not require shareholders or directors and can be solely managed by one chief executive. They are designed for representative purposes and prohibited from engaging in revenue-generating activities.
A Foreign Trade Representative Company, often referred to as KP3A (Kantor Perwakilan Perusahaan Perdagangan Asing), is a form of entity for company registration in Indonesia. It is a foreign company established by a foreign company to promote and market its products within Indonesia without indulging in sales transactions.
It is a legal entity formed by a foreign oil and gas company in Indonesia. It is one of the business entities for company registration in Indonesia that focuses on market research, networking, and exploring business opportunities in the Indonesian oil and gas industry. It is one of the business structures for company formation in Indonesia.
It is a type of representative office established by a foreign construction company. With its registration, businesses can operate as well as manage their construction-related activities within the country. It cannot directly undertake construction projects on its own. It can collaborate with a local Indonesian construction company to execute projects.
The list of legal frameworks for company registration in Indonesia is as follows:
Here, given below are the lists of benefits of business registration in Indonesia:
Indonesia has been on an impressive growth trajectory, with most business sectors experiencing consistent and significant expansion. According to Standard Chartered Bank, Indonesia is projected to become a $10 trillion economy by 2025. It is one of the significant benefits of business registration in Indonesia.
Unlike many other countries where business formation is complex, Indonesia offers a transparent and trade-friendly environment for business registration. The process is designed to be hassle-free for overseas businesses, with minimal legal formalities, making it an attractive destination for entrepreneurs.
Indonesia is home to over 144 million workforces, and the cost of acquiring the same is comparatively lower than other nations, with most of them serving the agriculture sector, retail, and manufacturing. It is one of the substantial benefits of company registration in Indonesia.
Company formation in Indonesia does not necessarily attract dozens of legalities, unlike in other countries. Therefore, businesses seeking registration will experience minimal legal hurdles to keep business running in Indonesia.
Both foreign and local businesses in Indonesia have equal access to funding opportunities from several banking institutions and lending avenues. It is one of the incredible benefits of company registration in Indonesia that keep the business enthusiasts hooked.
The government of Indonesia has consistently put an effort to ease the business environment by improving the EODB (Ease of Doing Business). It is one of the key benefits of business registration in Indonesia.
Indonesia is an esteemed member of ASEAN (Association of Southeast Asia) and has sanctioned several free trade agreements with different countries across the globe. Thus, simplifying cross-border trade with less regulatory burden.
Indonesia has also signed double tax agreements (DTAs) with various nations, including the United States, China, Australia, India, Canada, etc. Thus, waiving the extra trade burdens with such countries on transactions of goods.
Foreign investors in Indonesia can legally own land and invest in real estate assets. However, there exist three distinct property ownerships, each characterized as the right to construct, the right to cultivate, and the right to use.
Have a look at the stepwise guide for company formation in Indonesia-
Our experts at Enterslice will help you reserve a unique business name with the Ministry of Law and Human Rights (MOLHR).
On your behalf, our local experts will prepare the Deed of Establishment. It includes business activity, Articles of Association, and shareholder information.
Our expert consultants will assist you with the submission of the Deed of Establishment to the Ministry of Law and Human Rights (MOLHR).
The Ministry of Law and Human Rights (MOLHR) will review the founding documents of the company.
Post evaluation and review, The Ministry of Law and Human Rights (MOLHR) will issue the company registration certificate.
Upon business setup, you need to register for a Tax Identification Number (NPWP) with the Directorate General of Taxes.
Our consultants will assist you in applying for the Business Registration Number (NIB) through OSS (One Single Submission).
The list of documents required for company registration in Indonesia is as follows:
A copy of the deed of establishment
A copy of the director's identification card
A copy of the passport
A copy of the rental agreement or lease of the business office
A domicile letter from the concerned government where the company is located
A photograph of the director(s)
Power of Attorney (Signed by each shareholder)
Company letterhead & copy or sample design of the company stamp.
Business registration certificate
Board of Director structure
Have a look at the timeline for company incorporation in Indonesia-
It takes around 1 day to get the approval for the company name.
The document preparation usually takes around 2 to 3 days.
The document submission takes around 3 to 5 days.
The Ministry of Law and Human Rights ratified it in 1 day.
Acquisition of NIB and Commercial License takes around 4 to 8 days.
The corporate tax rate for company registration in Indonesia is as follows:
The requirements for company incorporation in Indonesia are as follows:
Have a look at the profitable industries for company formation in Indonesia-
Given below are the reasons why Enterslice is the first choice for company formation in Indonesia-
Yes, foreigners can start a business after company registration in Indonesia, provided they meet the requirements further depending upon the type of business structure the requirements may differ. In general business model like PT PMA (Foreign-Owned Limited Liability Company) or partnering with local entity are mostly preferred choice among foreigners.
The steps to open a company in Indonesia are
The main types of business structures for company formation in Indonesia are-
The minimum paid-up capital in Indonesia for Indonesia company formation is 10 billion Indonesian Rupiah, approximately 53,000,000 Indian Rupees (INR).
The minimum requirements to register a PT in Indonesia are two local shareholders, one local director and one local commissioner.
The foreign investors looking to company set up Indonesia can have a complete ownership with no requirement of an Indonesian partner.
The timeline for obtaining company registration in Indonesia is 2 to 3 weeks, provided documentation is completed on time.
The most common type of business in Indonesia are a local company, foreign-owned company and representative office. For the local company owners must be Indonesian citizens, as foreign ownerships are not allowed. On the other hand, foreign owned company (PT PMA) is open to international investors.
The business tax or corporate income tax for company registration in Indonesia is 25%.
Foreign citizen in Indonesia is only taxed on their Indonesian-sourced income subject to certain requirements as per the laws and regulations.
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