Understand the Jurisdictions Setup Requirement Before Proceed Your Company Registration in Indonesia
You have three options while registering a company in Indonesia. One is to register a Local Company (PT), and another to go for a Foreign-Owned Company (PT PMA). Finally, you can opt for a Representative Office. Understanding the different types of companies in Indonesia is the first step to successful company registration in Indonesia.
The process of company registration in Indonesia is different for different types of business entities. It might be a tedious task for many and 3E Accounting has been helping people to form companies most easily in Indonesia. Working with 3E Accounting, all you need to do is know the type of company you want to register in Indonesia. After that, contact us, and our team will register your Indonesia company in no time.
Understand the company framework in Indonesia before you move forward to registering a company in the country.
Local Company (PT)
You could opt for opening a local company in Indonesia if you want to run the business from Indonesia. Foreigners can also run a local PT, but they need to relocate or make a formal agreement with an Indonesian. There are two types of Local PT company in Indonesia, the local nominee, and shelf company. To open a local company, you should fulfil the following obligations:
- The company should have at least one resident director.
- The company should have a commissioner.
- In the case of a Local PT company, there should be at least two shareholders.
In the case of the previous type of company, you didn’t have a lot of freedom as a foreigner, but Indonesia also has a different provision for foreign investors. A foreign-owned company in Indonesia allows 100% foreign ownership. But keep on mind that some business fields might still require a foreigner to work with a local representative to run the business.
The potential owners of the foreign business should somehow verify that the company helps the Indonesian economy in some way. There also are financial requirements. You must be willing to invest more than USD$1 million and have a minimum paid-up capital of USD 250,000 to open a foreign company in Indonesia.
As its name suggests, a representative office is for already established offices in other countries to open a subsidiary in Indonesia. Anyway, keep on mind that a representative office can’t directly make a business contact with the people other Indonesian companies. A representative office in Indonesia is more of an office that coordinates the business tasks from the country. They are not allowed to make sales or generate profit; they are only supposed to perform administrative tasks. Thus, a representative office suited to companies who want first to monitor the market before they complete the company registration in Indonesia.
Get in Touch With Us
Company registration in Indonesia might be a lot of work for some. It takes a lot of effort and energy, but it doesn’t have to be like that. 3E Accounting has more than enough experience and expertise to make your company registration in Indonesia simple and straightforward. Just contact us for the most affordable company registration services in Indonesia.