The decision to start business set up in a new market is critical. Activities in the new country that involve substantial investment may lead to high risk because of different economic, cultural, political, and technological conditions that create major challenges.
Professional assistance is important to ensure that your business is set up properly. Just as every other market does, Indonesia has its own characteristics. Proper understanding requires deep insight into its culture, customs, and business environment.
Thanks to our local team and extensive expertise, HC can advise you on the most suitable way to enter the market effectively.
We provide comprehensive consultancy services to guide our clients through the process of starting up a business in Indonesia.
| Local Company (PT) | Foreign Owned Company (PMA) | Representative Office | |
Company Registration |
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| Minimum No. of Directors | 1 | 1 | Parent Company |
| Minimum No. of Shareholders | 2 | 2 | Parent Company |
| Minimum No. of Commissioner | 1 | 1 | NA |
| Minimum Paid Up Share Capital | From US$3,745 | US$200,000 | None |
| Estimated Timeline of Incorporation | 2-5 months | 2-5 months | 2 months |
| Indonesia Resident Company Secretary | No | No | No |
| Resident director / manager required? | Yes | Yes | Yes |
| Resident shareholder / partners required? | Yes | Depends on NIL (Negative Investment List) | No |
| Government foreign investor approval required? | No | No | No |
| Shelf companies available? | Yes | Yes | No |
Accounting and tax Considerations |
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| Statutory corporation tax payable? | Yes | Yes | Yes |
| Must file annual Indonesia tax return? | Yes | Yes | Yes |
| Must file annual financial statements? | No | No | No |
| Must appoint an auditor? | No | No | No |
| Access to double taxation treaties? |
Yes |
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| Business Consideration | |||
| Can invoice local customers in your company name? | Yes | Yes | Yes |
| Can hire local staff in your company name? | |||
| Can rent local office space in your company name? | No | No | No |
| Residence visa for business owner? | Yes | Yes | Yes |
| Good entity for trademark registration? | Yes | Yes | Yes |
Other Considerations |
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| Is it legal for tax exempt if properly structured? | Yes | Yes | Yes |
| You need a local Indonesian citizen as a sponsor? | Yes | Depends on NIL (Negative Investment List) | No |
| Must appoint an Indonesian resident as bank signatory? | Yes | No | No |
| Security deposit to be kept with government? | No | No | No |
| Client must travel to Indonesia? | No | No | N0 |