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A Registration Service for Indonesia Companies

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Indonesia has the fourth largest population in Southern Asia, and is presently the sixteenth biggest economy worldwide. During the last ten years, the country has experienced major economic growth. And although this larger economy is appealing to investors, it is wise to remember that there are also challenges associated with doing business in Indonesia.

 

The Advantages of Conducting Business in Indonesia

 Investors want to set up Indonesian businesses for the following reasons:

  • The significant domestic consumption in the country

  • The flourishing middle class

  • The rich natural resources

  • The political stability that has existed since the country's transition to democracy in 1998

  • There are better opportunities and potential, due to the country's large economy

  • It is a member of ASEAN (the Southeast Asian Nation Association)

  • It occupies a strategic position

The Obstacles of Conducting Business in Indonesia

Overseas investors getting ready to enter the commercial market here have to be prepared for the obstacles that might arise, such as:

  • A complicated and bureaucratic system

  • Little accountability

  • Weather events, like earthquakes, that occur often in this country

  • The shoddy infrastructure in some regions, because these haven't been maintained or developed sufficiently to keep pace with the requirements of fast market expansion

  • Potentially high logistics costs

How to Register Company in Indonesia?

It can take a long time to set up an overseas business, primarily because overseas investors are not aware of how the local market works. Unfamiliarity with the different processes involved can slow everything down considerably, because you have to proceed cautiously to ensure that everything is carried out properly.

Under Indonesian law, overseas investors can perform commercial activities in the country by first establishing a legal entity. The name for this is PT PMA (the local name for a Foreign Investment Company). Overseas investors can own this entity in part or in full.

To set up a PT PMA, investors need the approval of the BKPM (Investment Coordinating Board) in Indonesia to obtain a business license an “in-principle” permit to set up the business. This could take about a week to process. Other paperwork that must be completed include:

  • A notarized deed of establishment

  • A domicile certificate from the local government authority

  • A business tax ID number

  • A business registration certificate

  • A business welfare report and manpower report that can be acquired from the Ministry of Manpower

Based on the industry your company operates in, further documents and licenses might be needed in some circumstances.

Because some parts of the registration procedure are extremely complicated and bureaucratic, overseas investors usually enlist the services of a professional to facilitate the process. Specialist knowledge goes a long way in Indonesia, so it makes sense to hire someone who can help your business reap the rewards of this lucrative market.

Our expert team is ready to make the registration procedure for your business as simple as possible. Contact us immediately to learn more about the services we offer.