Before you form your business, there are certain questions to answer. For instance, what is incorporation of company? Incorporation can be defined as the process of registering a company to make it legit and be under the recognition and protection of the country where it is registered. An incorporation company, however, is a business that helps people to incorporate and build their business from scratch. Indonesia Company Setup can provide you the things that you need.
You can either do the incorporation yourself or you can simply rely on an incorporation company in Indonesia or any service provider in particular for your incorporation needs.
Complete the following requirements before your business can be incorporated:
- In order to not to be called a sole proprietorship, there must be at least two shareholders in a company.
- Capital Requirement. The capital amount required in Indonesia is 10 billion IDR. This is approximately 710 thousand USD. The law also mandates that 25% of this capital should be coming from the shareholders.
- You can have 2 or more directors in accordance with the law. However, one of them should be a local resident.
- You have to assign a commissioner to act on your incorporation. They can be a local or a foreigner. The latter, however, must possess a working permit. Otherwise, they won’t be qualified.
What are the different types of business in Indonesia and which one a foreigner can incorporate?
There are 3 types of business in Indonesia. They are the following.
- Local-Owned Company. As the name of the business implies, this one is only for local residents of Indonesia. The amount of capital will dictate if you are categorized as small, medium, or large. The first one requires a capital of 50 to 500 million IDR while the second requires 500 million IDR to 10 billion IDR. Last but not least, the large one requires any amount of more than 10 billion IDR.
- Foreign-Owned Company. The foreign-owned company in Indonesia is also known as PT PMA. This is particularly designed by the Indonesian Government to meet the needs of foreign businesspersons.
- Representative Office. This type of business is one of the options for foreigners who want to do company activities in Indonesia that are not income-generating. Examples of this include conducting market research and building brand awareness for the company.
Do You Need an Incorporation Company in Indonesia?
If you need an Incorporation Company in Indonesia, you can contact 3E Accounting. They are among those known providers for Indonesia Company Setup that can offer quality service for your company.