Understand the Jurisdictions Setup Requirement Before Proceed Your Indonesia Company Formation

The decision to set up a business in Indonesia is a critical one. It will always come with substantial investment. Any wrong move may make you incur losses you may have never intended. This is why it is important for you to seek professional assistance right from the start of Indonesia company formation and throughout its operations. Just like every other foreign country, Indonesia has its distinct characteristics when it comes to starting a new business. It is imperative for you to understand what’s necessary for setting up the kind of business you’re interested in.

At 3E Accounting United Kingdom, we have a local team of highly experienced attorneys, tax experts, and accountants. They will avail to your every information and service you need to incorporate your company in Indonesia. Irrespective of your market, we will advise you on the most effective approach to adopt and through our consultancy services, you will find the process of starting a company in Indonesia to be a breeze.

 

Business Entities in Indonesia

If you are looking to invest in Indonesia, there are three primary legal entities you may choose from. If you don’t know which one to go for, don’t worry! Our experts will guide you on what is vital in each case. We have options most ideal for your case based on the nature of your business. Here is a look at the three entities.

Local Company

It’s possible for foreigners to start a company in Indonesia as a local or a foreigner using a local nominee. Such a company will enjoy 100% local ownership, and they are also not subject to the stringent requirements for forming other legal entities.

Foreign-owned Company

This is a legal entity that can be owned and operated by foreigners in Indonesia. It is one of the common avenues used by investors keen on Indonesia company formation for new ventures or those who wish to expand their operations into the region. However, the amount of ownership held by foreigners in a limited liability company is dependent upon the sector and the specific nature of the business. Such restrictions can be present in the infamous Indonesian Negative Investment List.

Representative Office

A representative office always functions as a branch of a parent company with operations outside Indonesia. In most cases, businesses love using the representative office as a way of getting into the Indonesian market and testing waters before they step in with both feet.

The main reason why a business would have a representative office in Indonesia is to market their products as they prepare to register a foreign-owned company. It could also be a reference for conducting market research. This entity, however, may not carry out direct selling or any other revenue-generating activity.

 

 

Get in Touch

Use our comprehensive Indonesia company formation consultancy services to get going with any for the above business entities. Feel free to contact us if you have any concerns or inquiries about our company formation services.