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| Indonesia Business Set Up | |||||||
Indonesia business set up takes up to 90 days to complete. The various stages of the company registration process, involving multiple government departments, is criticised in the many international surveys rating the investment climate in countries around the world. Major organisations such as the World Bank consider Indonesia to be a difficult place to set up a business. However, for many foreign investors the long-term benefits of one of the world's most resource-rich countries outweigh initial bureaucratic challenges.
The following is an overview of the procedures related to Indonesia business set up.
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| 1. | Applications to set up a business in Indonesia begin by submitting an application for company name approval at the Ministry of Justice and Human Rights in Jakarta.
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| 2. | Company shareholders sign a Deed of Establishment in front of a notary public in Indonesia. This is followed by obtaining a Certificate of Company Domicile, which is issued by the management of the building in which office space is leased.
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| 3. | The next step in the Indonesia business set up procedure is for the company to obtain a tax registration number from the local Tax Office. It is also necessary for the business to apply for a value added tax (VAT) collector number if annual sales income is expected to exceed 600 million rupiah (US$66,000).
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| 4. | The initial issued capital is lodged in a local Indonesian bank account opened in the name of the proposed company. Opening a bank account is challenging because of excessive due diligence requirements by Indonesian banks. According to Indonesian Company Law, at least half of the company's issued capital has to be paid in to this bank account at this stage. The remainder is paid when the Ministry of Justice and Human Rights approves the company's Articles of Association. Once the bank account is approved the bank issues an account certificate.
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| 5. | The notary public preparing the Deed of Establishment (see point 2 above) electronically files the bank account certificate, the tax registration certificate (see point 3) and the Certificate of Company Domicile at the Ministry of Justice and Human Rights.
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| 6. | The company is then required to register with the Company Register at the Department of Trade. This is followed by the notary applying to publish the Articles of Association in the State Gazette. The application is submitted to the State Printing Company, which usually takes 2 to 3 months to publish the notice.
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| 7. | The company is required to register with the Ministry of Manpower if it employs more than 10 workers.
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| 8. | Because of the complications of Indonesia business set up as described above, it is normal for most entrepreneurs to hire the services of a Firm to project manage all formalities. This Firm will i) incorporate the company ii) open a corporate bank account iii) obtain employment permits for expatriate staff, and iv) assist with tax and accounting obligations.
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| Contact Us | ||
For more information on Indonesia business set up, contact email@healyconsultants.com or call us in Singapore at (+65) 6735 0120.
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