YOUR BUSINESS ADVISOR FOR INVESTMENT PROJECTS IN INDONESIA
Our team of professional advisors provide local and foreign investors with guidance on corporate matters. Our experience and up to date knowledge of prevailing laws and regulations means we are able to reduce the risks associated with your investment project. Our professional project managers will consult with you so you can correctly structure your investment, quickly establish your company, legitimately obtain all required operating permits and licenses, and confidently ensure your business is compliant with tax and reporting requirements.
OUR QUICK GUIDE
Quick Guide for Foreign Investors Establishing a Business in Indonesia
A foreign investor who wants to own a business in Indonesia must establish a foreign investment limited liability company. This is referred to as a PT PMA (Perseroan Terbatas Penanaman Modal Asing). Assuming the foreign investor is not restricted by the Negative Investment List and they have the required capital, they will also need to acquire the relevant business permits and licenses for their business sector. Examples include, a Business Permit (Izin Usaha/Izin Industri), a construction license (SIUJK), and a shipping license (SIUPAL/SIUPKK) …read more
INDONESIAN BUSINESS LICENSES
We assist clients in obtaining Investment Registration and other Business Licenses, including but not limited to Construction Representative Office (BUJKA); Construction (SIUJK); Location Permit for Development (IL); Location Permit for Plantations (IL); Hotel and Tourism License; Fintech License; Software Application Registration Transportation (SIUJPT)
RANGE OF SERVICES FOR LOCAL AND FOREIGN INVESTORS IN INDONESIA
Setting Up Your Foreign or Local Business
Whether you are plan to start a foreign or local limited liability company, a local partnership or other legal entity in Indonesia, we provide step by step guidance on what to prepare for your investment and how to ensure that you are in compliance with the existing regulations. A brief summary of the processes is set out beloU
Establishing a limited liability company that is approved for foreign investment (PT PMA)
If you plan to establish a wholly owned foreign investment limited liability company (PT PMA), you must ensure you keep up to date with the changing regulations.
Recently, the Indonesian government has taken steps to simplify the process required for establishing a limited liability company that is approved for foreign investment (PT PMA). The new process is as follows:
For a foreign investment company, the minimum authorized capital must be more than IDR10,000,000,000 and at least 25% must be paid up. Please note that a company must be registered as a foreign investment company (PT PMA) when one of the shareholders is foreign, even if the foreign entity only owns 1 share of the company.
The Presidential Regulation no 44 year 2016 (the Negative List) details the type of businesses that are closed or limited to foreign ownership. If you are a foreigner interested in starting a business that is restricted to foreign investment, please note that nominee arrangements are prohibited in Indonesia.
Establishing a Representative Office
A foreign company wanting to have a presence in Indonesia but who is not quite ready to inject capital into the country may opt to establish a Representative Office instead. A Representative Office, with the exception of a Construction Representative Office BUJKA, is restricted from issuing invoices, so any commercial transactions made must be invoiced by the parent company abroad. Representative Offices are typically set up for market research purposes or to provide supporting functions to parent companies. A Representative Office permit is valid for 3 years and may be renewed.
Offshore Establishment (Outside Indonesia)
Offshore establishment is the incorporation of a company overseas by non-resident/foreign individuals. Reasons for offshore establishment include: the need to have a local presence; the protection of assets; and the use of trusts.
Different counties have different regulatory requirements. To ensure your business meets the requirements of foreign laws and regulations, Prudenta Business Advisory provides assistance with offshore establishment and maintenance so that you can focus on expanding your business locally as well as internationally.
Business Compliance After Establishment
After establishment, a company is required to adhere to the Indonesian tax and non-tax compliance. The tax compliance requirements may include:
The non-tax compliance requirements may include:
Prudenta Business Advisory provides assistance for business compliance so that you can focus on generating profit for your business.
Company NIB Registration-Online Single Submission (OSS) License
The government regulation PP 24 year 2018 requires all businesses to be registered in the online single submission (OSS) system. Upon registration, you will receive a unique business identification registration number (NIB) which also functions as the company registration, import license, and customs registration. Through the OSS system, you can obtain the basic licenses required to start business operations. The OSS system also assists business owners by informing them of the compliance requirements.
A notarial deed is a legal document prepared and stated before the notary. The document can be any type of agreement, power of attorney or statement letter. Preparing these documents in the form of a notarial deed reinforces the legality and existence of such document as they are reported by the notary to the ministry of law. In addition, certain regulations, such as those relating to company law, mandate the type of documents that must be prepared in the form of a notarial deed.
Once a company is established, it is recommended to have a range of supporting services that are available on demand. Prudenta Business Advisory provides on demand support services, including:
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