Indonesia Company Formation @ Healy Consultants

Indonesia Company Formation

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FEES SCHEDULE

100% FOREIGN OWNED (PMA)
US$14,150 (Year 1)*
US$4,200 (Year 2)

REP OFFICE
US$17,750 (Year 1)*
US$1,100 (Year 2)

Nominee director fee
US$5,800 **

Nominee shareholder fee
US$10,800 **

Company de-registration
US$3,450

*Depending on corporate structure and range of professional services required by our clients.

**Excludes US$3,300 refundable deposit.

Indonesia company formation is a legitimate way for international entrepreneurs to conduct business in Indonesia and throughout the Association of South East Asian Nations (ASEAN) region. The following will help you determine whether Indonesia company formation is the optimum corporate structure to fulfill international business objectives:

Advantages of Indonesia Company Formation

An Indonesian company can be 100% foreign-owned and controlled. For more information on an Indonesian wholly-owned foreign company, visit our Indonesia Wholly-Owned Foreign Company (PMA) page. An Indonesia Representative Office can also be 100% foreign-owned and controlled, but is not permitted to make direct sales in Indonesia.

Indonesia company formation permits entrepreneurs access to a network of double taxation treaties with countries including Australia, France, Germany, Singapore, South Africa, the US and the UK.

The Indonesian economy is surprisingly ranked as the 54th-most competitive economy in the world, according to the World Economic Forum's Global Competitiveness Report 2009-2010.

Disadvantages of Indonesia Company Formation

Indonesia company formation is hampered by foreign investment restrictions, erratic law enforcement, uncertain government costs and a lack of regulatory transparency. In terms of the ease of doing business, Indonesia is poorly ranked at 129th according to the 2009 Doing Business Survey by the World Bank. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business.

Indonesia poorly ranks as the 111th least corrupt country in the world, according to the 2009 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians.

An Indonesian company is liable to pay a corporation tax of 30% on income sourced in Indonesia and internationally. Capital gains is taxed at up to 30%. Additionally, Indonesia is positively ranked as the world's 114th freest economy in the Heritage Organisation’s 2010 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.

With the exception of a representative office, a minimum of two shareholders and one directors is required to complete Indonesia company formation. The shareholders and directors details are available on a public register.

An Indonesia Joint Venture company requires an Indonesian citizen to hold a share of at least 5% in the Company.

Following Indonesia company formation, most entities are required to submit an annual tax return and audited financial statements.

An Indonesian representative office is not allowed to undertake revenue generating activities.

Indonesia remains blacklisted by the Financial Action Task Force (FATF) on Money Laundering, making it difficult to open corporate bank accounts following Indonesia company formation.

Contact Us

For more information on Indonesia company formation, contact email@healyconsultants.com or call us at (+65) 6735 0120.

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Buy the Indonesia chapter of Healy Consultants' Asia Business Set Up book, to order call +65 6735 0120 or e-mail email@healyconsultants.com