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How Difficult is it to Set Up a Company in Indonesia?

If you are considering setting up a business in Indonesia, you have come to the right place as we offer you valuable information to assist you in company formation in the Asian nation of Indonesia. It might seem like a daunting prospect to register a business in a non-English-speaking country; where would you start?

Connect with a leading international law firm

This is the first step and Google can help you make contact with such a law firm, where experienced business lawyers can advise you on the best form of business to register. Not only can they provide you with sound advice, they are also well-connected with local businesses that offer a wide range of services.

Business services

Once your business has been registered, there are many essential services that you will need and your lawyer can put you in touch with local providers.

Here are a few of the services on offer by local companies:

  • General secretarial work
  • Writing reports
  • Printing
  • Bookkeeping and accountancy
  • Audits

If you are in need of an accounting company in Indonesia, your legal partner has you covered. While you can make good use of virtual receptionist services to handle all incoming office calls. Of course, you might prefer to hire locals directly to work under your foreign manager and your lawyer knows a local recruitment agency and you can interview the shortlist. Labour rates in Indonesia are not excessive, which is why many foreign companies prefer to hire directly.

Various business registration types

A foreign investor who wishes to set up a company in Indonesia has the following options:

  • Representative Office (KPPA) – If you are planning to carry out some serious market research with a view to start trading sometime in the future, this would be the best form of business to register. Set up takes 3-4 weeks.
  • Local Company (PT) – This is a trading entity is the most popular form of business registration, which is easy to set up and allows you to obtain working visas. You will need 1 director and at least 2 shareholders and the set up takes 3-4 weeks.
  • Foreign Company (PT PMA) – A foreign company can be 100% owned by a foreigner, with limited liability and limited business activities. The business is subject to local laws and it takes 3-4 weeks to complete the registration process. Click here for information on paid media services and why it can be effective.

Your lawyer is very experienced in the complex field of commerce in Indonesia and you will make all the right choices with their counsel. It all depends on your long-term goals, if you need to do some research on the local markets, an RO would be the best solution, while a Local Company would suit a partnership with a local, or you might prefer a 1005 owned Foreign Company.

Setting up a company in Indonesia is a smooth process with the right legal help and your new venture will soon be up and running.

Daniel Robert
Daniel Robert
Daniel Robert is a multi-talented author at thetechdiary.com, particularly interested in business, marketing, gaming, entertainment, technology and more. His diverse background and love for learning have allowed him to write on various topics. With a unique ability to craft engaging and informative content, Daniel has become a well-respected voice in online publishing.


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