Indonesia is one of the most dynamic markets in South-East Asia. With its favourable geographical location, big population, developing economy and ongoing reforms, Indonesia is slowly climbing its way to being one of the best places for foreigners to do business in Asia. If you are thinking of Indonesia company incorporation, you first need to understand the process of registration. After all, registration could be full of hassle and confusing, but here, we help you. We give you important pointers about registering a company in Indonesia.
Choose a Business Structure
The first step in registering a company in Indonesia is choosing the right business structure. This depends on the size and type of your company. Furthermore, a fully foreign-owned company can have a different structure in Indonesia.
The types of companies in Indonesia are PT (Perseroan Terbatas), which could be small-sized, medium-sized and large-sized, depending on the capitals. Other companies include PMA (Penanaman Modal Asing) and KPPA. Nominee Limited Liability Company and Representative Office are also available.
Choose a Company Name
The next step is choosing a company name. The company name should not already be in use, and can’t be vulgar. Thinking of a company name can be simpler in Indonesia rather than in other countries, because your name can be in English, Indonesian, or both.
While registering for a name, you have to provide at least three options to make sure that you don’t run out of options if your first name is denied. Also, you have to register the company name at the Ministry of Law and Human Rights.
Find a Registered Address
You need a registered address to register a company in Indonesia. It should be a physical address and not a PO Box Number. On the other hand, you also need a mailing address, which could also be your registered address. Finding an address can be one of the time-consuming things to do, so it is always great to hire an Indonesian representative who can help you with it and similar things.
Apply for a Business Licence
After finding a registered address and approval of your company name, the real registration begins. In Indonesia, Certificate of Business registration and other registration documents from the Ministry of Trade is known as business license.
To get a business license, you should first obtain the Deed of Establishment (DOE). The next thing you need to do is apply for SIUP (Surat Izin Usaha Perniagaan) and after that, for the Business Registration Number. Finally, you can register for tax, and obtain a work visa. Don’t forget to choose the right corporate bank account. You may need to do research about the banks and one you want to open an account before coming to Indonesia.
Work with a Registration Service Provider
It is virtually impossible and impractical to register a company by yourself in Indonesia, especially if you are an international investor. As great Indonesia can be a place to run a business, the registration process can get even more confusing. Thus, you should contact a service provider who can provide you company registration Indonesia services.