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| Indonesia Company Incorporation | |||||||
Indonesia company incorporation is challenging for foreign investors. Inconsistent legal frameworks and procedures, a lack of transparency over incorporation procedures and costs, and the ever-present prospect of corruption combine to make Indonesia one of the most difficult investment locations in Southeast Asia. The following is an overview of the Indonesian corporate entities available to foreign investors, as well as incorporation requirements. | |||||||
| 1. | Of the four different corporate entities available to foreign investors choosing Indonesia company incorporation, only the Joint Venture Company and Nominee Trading Company require an Indonesian citizen shareholder. 100% foreign ownership is available through a PMA (Penanaman Modal Asing) or through a Representative Office. The majority of foreign investors incorporating in Indonesia choose a PMA as their preferred investment vehicle. .
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| 3. | A PMA requires a minimum two directors and shareholders, who may be of any nationality and need not be resident in Indonesia. The director and shareholder details are available for public viewing. It is possible to have corporate shareholders to comply with Indonesia company registration laws.
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| 4. | During incorporation, a PMA requires a minimum issued share capital of US$1,000
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| 6. | Most PMAs obtain a Business License to operate for 30 years. However, in some circumstances it is possible to obtain licenses of up to 60 years.
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| 7. | Applications to incorporate a PMA are lodged through the Indonesia Investment Coordination Board. Because of the time-consuming nature of Indonesia company incorporation, most foreign investors appoint a professional corporate services Firm to i) register the company and obtain foreign investment approval (if necessary) ii) open an Indonesia corporate bank account and iii) obtain work permits for expatriate staff (if required).
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| 8. | After Indonesia company incorporation, the company director and shareholder details are available for viewing on a public register for all entities except the Representative Office.
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| Contact Us |
For more information on Indonesia Incorporation, email email@healyconsultants.com or call us in Singapore at (+65) 6735 0120. |
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