Indonesia Company Formation |
|
||||||||||||||||||
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 |
|||||||||||||||||||
1.
|
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. |
||||||||||||||||||
2.
|
|||||||||||||||||||
3.
|
The Indonesian economy is ranked as the 46th-most competitive economy in the world, according to the World Economic Forum's Global Competitiveness Report 2011-2012. |
||||||||||||||||||
Disadvantages of Indonesia Company Formation |
|||||||||||||||||||
1.
|
Indonesia company formation can be hampered by foreign investment restrictions, uncertain government costs and a lack of regulatory transparency. In terms of the ease of doing business, Indonesia is poorly ranked at 121st, according to the 2011 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. |
||||||||||||||||||
2.
|
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. |
||||||||||||||||||
3.
|
An Indonesian representative office is not allowed to undertake revenue generating activities. |
||||||||||||||||||
4.
|
An Indonesia Joint Venture company requires an Indonesian citizen to hold a share of at least 5% in the Company. |
||||||||||||||||||
5.
|
An Indonesian company is liable to pay a corporation tax of 30% on income sourced in Indonesia and internationally. Capital gains are 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. |
||||||||||||||||||
6.
|
Following Indonesia company formation, most entities are required to submit an annual tax return and audited financial statements. |
||||||||||||||||||
7.
|
Indonesia poorly ranks as the 100th least corrupt country in the world, according to the 2011 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians. |
||||||||||||||||||
8.
|
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 phone us at (+65) 6735 0120. |
|||||||||||||||||||
Back to Asia Pacific Company Incorporation page. |
|||||||||||||||||||
Back to Home page. |
|||||||||||||||||||
Buy Healy Consultants' Asia Business Set Up book. To order, call (+65) 6735 0120 or contact email@healyconsultants.com
