There are different business structures in Indonesia, including limited liability companies, joint ventures, and representative offices. Here is the step-to-step guide for Indonesia incorporation.
Representative office:
The foreigners are allowed to be involved only in specific sectors like market research or promotion activities including oil and gas mining and banking, trading, etc. to incorporate representative offices. The process to set up a representative office includes:
Approval from the Indonesian Investment Coordinating Board:
It takes approximately 3-5 days and requires the following documents:
- Appointment letter from holding/parent company.
- If the other party represents the parent company, the application must be signed by a power of attorney.
- For foreigners, a copy of a passport and for Indonesians, a copy of a valid ID card is required to be an executive member in the representative office.
- A statement letter to work only as an executive of a representative office without being involved in any other firm in Indonesia.
- Acquire domicile letter: It takes 2 days and should be obtained from a local government.
- Tax Record Registration: The office should appeal for (NPWP) tax paying identification number in the tax office. It takes about 2 days.
- Company records Registration: It takes about 14-21 days.
Limited Liability Company:
Limited Liability Company is costly to incorporate in Indonesia taking approximately IDR 2,000,000. It is set up by foreigners and funded by foreign capitals. It should undergo a complete registration set up process. It takes 2-3 months for incorporation. The steps involved are:
- Payment to obtain clearance of the proposed company name
- Arrangement of a notary for the contract of the company name
- Company documents demonstration
- Application to a Ministry of law and human rights to approve the indenture of establishment
- Domicile certificate from Building management
Read Also: Corporation vs Incorporation: What’s the Difference?
- Application to acquire a certificate of company domicile
- Payment of non-tax state revenue for legitimate services
- Application to permanent commercial trading license
- Acquire certificate of business registration
- Registration in Ministry of Manpower
Joint Venture:
It involves partnership among foreign entrepreneurs and local investors. It includes the following steps:
- Company license registration
- Acquire certificate of approval
- Name internal director
For setting up a company in Indonesia, we at 3E Accounting Indonesia are experienced and offer you the best possible solutions. Contact us and let us help you to incorporate a company in Indonesia.
