In terms of ease of doing business, Indonesia still has much room to grow and improve due to lengthy set up procedures, uncertainty, and complications of regulations. Current Government has taken steps to reform the regulations to attract more foreign investors into the country, although local bureaucracy still makes its implementation challenging at times.
Putranto Alliance has decades of experience on business establishments process. The firm established its early presence as a notary firm since the 1980s and has helped with thousands of company establishments. We can help in establishing various form of business type, from limited liability companies, foundations, partnership and many other.
We strive to provide our clients with services that will facilitate their investment plans in Indonesia. On top of business establishment, our firm also provides business and legal advisory, tax and accounting, human resource, and compliance services to guide you while you establish your presence here. We also provide registered address required when you first set up your company.
There are several conditions that made an individual or business is deemed/eligible as a tax resident in Indonesia or the other way around, a non-tax resident of Indonesia. An ignorance of those terms and conditions of can result in fines and wrongly fulfilled tax obligations. With thorough knowledge in Indonesia Tax Law, Putranto Alliance can help you determined your eligibility as Indonesia tax residence.
We can help you and your business in obtaining Taxpayer Identity Number (TIN/ NPWP – Nomor Pokok Wajib Pajak) or relinquish it once you cease your business operation in Indonesia, which necessitate a tax audit by Tax Authority that we can also help you out with. We are also offering other services related to TIN services such as changes in address or applying of TIN for your branch office.
Business Identification Number (NIB) is an obligatory unique identifier for all businesses that want to operate in Indonesia. Without NIB, all other business documents and permits cannot be issued.
Putranto Alliance assists local and foreign entities to set up their business in Indonesia and obtain all necessary documents and permits to allow for immediate operation. Our knowledge of foreign investment restrictions and business classifications in Indonesia will help in ensuring a smooth process.
Many operational licenses may now be applied through the Online Submission System (OSS). The system links your company’s data to different government agencies such that multiple permits and registration are issued through the system. Without prior experience, it is challenging to navigate through the system and obtain the required licenses. Furthermore, some business licenses require additional commitments, and failure to fulfill them results in licenses that are non-effective. The additional commitments are not specifically listed out in the system and this may cause confusion for the applicants.
We have assisted our clients with the application of various types of business licenses such as construction, real estate, mining, trading, and many more. With our expertise, we will guide you with the requirements to obtain these business licenses. We will help you navigate through the system and brainstorm solutions if you have problems meeting the license requirements. When required, we can also assist you with the compliance requirements after the license has been granted.
For investors planning to approach the Indonesian market, Putranto Alliance can assist in establishing an initial presence in the form of a Representative Office. You can set up a Representative Office for supervisory, administrative, or marketing functions (to test the Indonesian market) but not for commercial transactions in Indonesia. You will need to establish a PT PMA (foreign investment company) if you want to start commercial operations in Indonesia.
We can help you obtain the relevant approval from BKPM through the OSS system and apply for a Representative Office Tax Identification Number. Although an RO does not receive income, there are tax obligations such as withholding income tax for employees’ salaries, service fees, and rental expenses.
Once a business has gained reputation and established growth, it may consider expanding to different parts of Indonesia to serve a wider client base. One issue that may arise is that the local authority will request for you to have the local licenses and permits as certain aspect of the operations are subject to local regulations. Upon establishment of branch offices, there might also be local taxes due.
Once you have determined your business location, our allied notary partners can assist you with the deed of branch opening, tax registration for the branch office and the registration from the Online Single Submission system. If required, we can also assist in finding office space for your branch establishment and provide business advisory on the compliance requirements.