Indonesia Company Registration Services
Indonesia is the fourth most populous country in South East Asia and currently the 16th largest economy in the world. Over the past decade, the country’s economy has been steadily growing. And while this growing economy is an attractive prospect for investors, it should be noted that making the decision to do business in Indonesia means being prepared for the challenges that come with it.
The benefits of doing business in Indonesia
Setting up a business in Indonesia is an attractive prospect for investors because of:
- The country’s strong domestic consumption
- Its growing middle class
- The country’s abundance of natural resources
- It’s political stability since the country transitioned to a democratic country in 1998
- The fact that it is the largest economy in South East Asia, meaning there is greater opportunity and potential
- It’s membership in the Association of Southeast Asian Nations (ASEAN)
- Its strategic location
The challenges of doing business in Indonesia
Foreign investors preparing to dive into the business market here need to be prepared to meet the challenges that may come with it, which include:
- A complex bureaucracy system
- A lack of transparency
- The natural disasters such as earthquakes which are frequent in this region
- The poor infrastructure in certain areas, as these have not been developed and maintained enough to keep up with the demands of the booming market growth
- Potential for high cost of logistics
The process of registering a company in Indonesia
Setting up a business in a foreign market can be a very time consuming affair, mainly because foreign investors are unfamiliar with workings of the local market. Being unfamiliar with the processes and procedures involve can significantly slow things down, because proceeding with caution is necessary to make sure everything is done accordingly.
As per Indonesian law, foreign investors can conduct commercial activities in Indonesia by first setting up a legal entity. This legal entity is called the Foreign Investment Company, known locally as the PTPMA. According to the law, this entity can be either fully owned or partially owned by foreign investors.
The first step to establishing this PTPMA is to get in touch with the Indonesia Investment Coordinating Board, also known as the BKPM locally. From the BKPM, you would need to acquire the principle license and business license, which can take about seven days to be processed. Other documents you would need to prepare include:
- The deed of establishment which has been legalized by a Public Notary
- The domicile letter from the local district authority
- The business tax identification number and the taxable entrepreneur confirmation from the local tax office
- The company registration certificate
- The manpower report and company welfare report which can be obtained from the sub-department of the Ministry of Manpower.
Depending on the type of sector your business is involved in, additional licenses and documentation may be required for certain sectors.
Because of the complication in some aspects of the registration process, foreign investors tend to opt for the assistance of professional services to assist with the process.
Our team of experts are here to help make your business registration process as easy for you as possible. Get in touch with us today and find out more about the services available.