Indonesia Business Formation

At the Forbes Conference in Singapore in early September 2006, Indonesian president Susilo Bambang Yudhoyono said the resource-rich country's gross domestic product (GDP) 'could double in the next 10 years. Indonesia business formation is available via many different corporate structures under Indonesian Company Law. The following information will help you determine whether Indonesia Company formation is the best solution to meet your business needs:
1.	Wholly-owned foreign company (Penanaman Modal Asing or PMA)
	This is one of the most popular forms of Indonesia business formation. This type of Company requires US$100,000 minimum share capital and there are no restrictions on foreign exchange repatriation. As the name suggests, this Company permits 100% foreign ownership, and it has no annual accounting, auditing and tax obligations following Indonesia Company formation. The Company requires a minimum of two directors and shareholders. If the PMA is formed by 100% foreign ownership, the foreign shareholder must sell at least 5% of the Company to an Indonesian entity within 15 years of commercial start up. However, a PMA set up with an initial 95% foreign ownership is not obliged to sell any shares. Healy Consultants' fees to establish a PMA start at US$14,150 in Year 1 and US$4,200 from Year 2 onwards, depending on corporate structure and range of professional services required.
2.	Nominee Trading Company
	A Nominee Trading Company requires an Indonesian citizen shareholder. The Company requires a minimum of two directors and shareholders, whose details appear on a public register. The Company must prepare and submit annual accounts and audit. Healy Consultants' fees to establish an Indonesian Nominee Trading Company start at US$17,950 in Year 1 and US$12,450 from Year 2 onwards, depending on corporate structure and range of professional services required.
3.	Joint Venture Company
	A Joint Venture Company requires an Indonesian citizen to hold a share of at least 5% in the Company. The Company requires a minimum of two directors and shareholders, whose details appear on a public register. The Company must prepare and submit annual accounts and audit. 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.
4.	Representative Office
	Unlike the other entities, an Indonesia Representative Office is not allowed to make sales and issue Bills of Lading. However, it can be 100% foreign-owned and controlled, and has no director or shareholder requirements. There are no accounts reporting requirements, although the entity does require a Registered Office and Company Secretary. Healy Consultants' fees to establish an Indonesia Representative Office start at US$17,750 in Year 1 and US$1,100 from Year 2 onwards, depending on corporate structure and range of professional services required.
5.	Other Information on Indonesia Company Formation
	Healy Consultants fees to act as nominee director to support your Indonesia business formation amount to US$5,800 per annum (together with a one time refundable deposit of US$3,300). When closing down your Indonesia Company, our de-registration/liquidation fees amount to US$3,450.
6.	Refer to the following pages for more information on Indonesia business formation:
	Indonesia Jurisdiction summary; Indonesia Company set up procedures; Indonesia Company registration process; Investing in Indonesia; Indonesia corporate bank account; Other services to support Indonesia Company formation; Client case studies; Further interesting information on Indonesia.
Contact Us
For more information on Indonesia business formation, contact email@healyconsultants.com or telephone us at (+65) 6735 0120.
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