An Indonesia joint venture company is an excellent way for foreign investors to acquire local market knowledge and expertise to tap opportunities in Indonesia and overseas. The following information will help you determine whether setting up a joint venture in Indonesia is the optimum corporate structure to fulfill your business objectives:
Advantages of an Indonesia joint venture
- A foreign investor can draw on the local market knowledge, business network and expertise of its Indonesian business partner. Similarly, the venture partner benefits from the expertise and technology of its foreign partner;
- A joint venture is not required to rent premises in Indonesia;
- An Indonesia partner company can obtain a 30-year business license;
- Healy Consultants can open global corporate bank accounts to support your venture partnership.
Disadvantages of an Indonesia joint venture
- A foreign investor does not have full control of the joint venture, which requires an Indonesian citizen to hold at least 5% of the company;
- An Indonesian business partnership venture requires a minimum of two directors and shareholders, whose details appear on a public register;
- The minimum issued share capital for a partnership business is 50 million rupiah (US$5,400);
- An Indonesia joint venture is required to submit an annual tax return and audited financial statements to Indonesian authorities;
- The joint venture in Indonesia requires a registered office and company secretary. Healy Consultants Indonesia office will act as your registered office and company secretary.
Healy Consultants fees for an Indonesia joint venture
Healy Consultants’ fees to establish an Indonesia joint venture Company start at US$17,700 in Year 1 and US$7,050 from Year 2 onwards, depending on corporate structure and range of professional services required.
Healy Consultants fees to act as nominee director to support your Indonesia joint partnership amount to US$5,950 per annum (together with a one time refundable deposit of US$2,450). When closing down your partnership, our de-registration / liquidation fees amount to US$3,450.
View the complete guide to Indonesia company incorporation.