Incorporating in Indonesia

Of the four different corporate entities available to foreign investors incorporating in Indonesia, only the Joint Venture Company and Nominee Trading Company require an Indonesian citizen shareholder. However, 15 years after incorporating in Indonesia, a wholly foreign-owned company (PMA company), that is 100% foreign investment, must sell at least 5% of shares to an Indonesian citizen or company.

When incorporating in Indonesia, the standard term for a business licence is 3 years initially for an Indonesia PMA and 2 years for a representative office.

Prior to incorporating in Indonesia, all company types, except the Representative Office, require a minimum of two shareholders and directors.

When incorporating in Indonesia, a company Secretary and registered office is required for all company types.

5.

Prior to incorporating in Indonesia, an Indonesia PMA requires a minimum issued share capital of US$100,000. The Representative Office has no capital requirement.

After incorporating in Indonesia, all of the business entities need to rent business premises.

After incorporating in Indonesia, only the Representative Office company is free of annual accounting, audit and tax obligations.

After incorporating in Indonesia, the company director and shareholder details are available for viewing on a public register for all entities except the Representative Office.