Indonesia, officially known as the Republic of Indonesia, is located in South East Asia. Comprising of thousands of islands, its economy majorly relies on Agriculture, Mining, Tourism and Textile Industry. Further, Indonesia has signed Double Tax Agreements with more than 65 countries. Setting up a company in Indonesia is ideally preferred by entrepreneurs also the trust factor plays a pivotal role whiledoing business in Indonesia. Additionally, the tax is levied on a business only on the income generated inIndonesia. Following are the advantages of starting a business in Indonesia. Enumerated below are a fewreasons why company formation in Indonesia can prove ideal for businesses.
Indonesia has a population of more than 270 million and therefore offers a huge market potential.
It is considered as one of the top export destinations across the globe.
The economy of Indonesia enjoys a steady growth every year.
It is a major exporter of crude palm oil, coal, cocoa and natural gas across the globe.
The percentage of foreign investment depends on the negative investment list, which allows for a substantial amount of foreign investment in various sectors as compared to the past.
There may be KBLI (Klasifikasi Baru Lapangan Usaha Indonesia/New Indonesian Classification of Business Fields) options that allow a 100% foreign shareholding. As such, we might need further discussion after engagement so we can discuss which KBLI options may suit your needs.
There is no regulation stating that a company's director should be a resident in Indonesia.
Foreign owned LLCs (PMA) - Minimum capital required to be paid up is IDR 2.5 billion (approximately USD 178,950).
A local registered office address..
List of 3 proposed names.
Address of the company.
For Individual Shareholders: Copy of passport and identification documents, address proof and contact details.
For Corporate Shareholders: Details of Authorized person, Copy of Certificate of Incorporation, AoA, MoA and PAN card or similar document, Shareholding pattern.
For Proposed Directors: Copy of passport and identification documents, address proof, contact details.
Applying for Name reservation and drafting Articles of Association.
Applying for Initial Investment license to BKPM.
Applying for Tax ID number, NIB and legalization of Ministry of Law and Human Rights.
Assistance in opening a bank account.
Other Maintenance & Compliance Services:
Book keeping and Preparation of financial statements.
Filing tax and annual returns.
Assistance in Reporting to BKPM.
The approximate time period for company incorporation in Indonesia can range from 2 – 3 months.