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Some Stipulated Valid Document That You Should Possess to Incorporate a Company in Indonesia
The flourishing economy offers you as an investor an opportunity to incorporate a company in Indonesia in the most easier way. To fulfill requirements for incorporating a company will depend on several factors. The first step for incorporating a company is to have a company name and your valid documents ready. The name searching is a mandatory requirement under the Ministry of law and Human rights. That means before you visit their offices you must notarize all the statutory documents. You must ensure filing the notarized statutory documents with the Ministry of Law and Human Rights. The law requires that the company’s name preceded by the idiom “Perseroan Terbatas” (Limited Liability Company) or PT. In case of a Public Company (Perseroan Terbuka) abbreviated “Tbk” at the end of the name.
In Indonesia, the registration of a company will require filing with the Trade Registrar upon payment of a nominal fee before the issuance of a receipt.
Documents Required for Company Registration
In case you are a foreign investor and plans to incorporate a company in Indonesia, you’re only offered four types of business structures including: the Indonesian LLC, the Foreign Owned LLC, the Nominee LLC and the Representative office. For a Foreign Owned company, the law requires a minimum of two shareholders, one director, and one commissioner. The directors should be Indonesia resident, and in case they are foreigners they must have a working permit and a visa. The minimum paid-up capital is US$300,000. The purpose of Indonesia government setting the high standard is only to attract large-scale investors and companies and to protect small enterprises. Under the negative investment list policy, Indonesia government constraints the number of classification of business from being wholly foreign-owned.
You’ll also be required to submit a shareholder’s deed of establishment that requires to be legitimatized by a public notary. Note that beside the Articles of Association, the shareholder’s deed contains extra information concerning the Founders, the Board of Directors and Board of Commissioner and the Shareholders personal details.
Additional Requirements
Should you decide to incorporate a company in Indonesia, you’ll be required to obtain the Principle License (Izin Prinsip) referred to as Surat Izin Usaha Perdagangan (SIUP) that’s has a maximum of three years beginning from the time of issuance. The application takes 5 days, and it’s free of charge. Besides a license, the law requires to apply for a Workers Social Security Program under the ManPower Minister Regulation which shields occupational accident safety and health maintenance. This applies when you have employees from 10 and above working in your company.
It’s a mandatory requirement that your company complies with taxation and reports the returns on a monthly basis by obtaining a taxpayer registration number (NPWP) alongside a VAT collector number (NPPKP) from the Directorate of General of Taxation. The process may take a day or two before completion. You stand to enjoy other benefits if you’re a foreign investor apart from 100 percent ownership if you incorporate a company in Indonesia
If you are a foreign investor, in addition to having 100% ownership, you will also enjoy other benefits when setting up a company in Indonesia. For more information, please contact us. 3E Accounting has a professional team to help you establish a company smoothly.
