For over a decade, Healy Consultants efficiently and effectively assists our Clients complete Indonesia business registration.
Advantages of Indonesia company registration
- Indonesia is the fourth most populous country in the world and GDP is growing at a rate 6 per cent per annum. Consequently, Indonesians’ per capita income and purchasing power is increasing. Consequently, local residents are hungry for international products and services and willing to spend on quality. After China and India, Indonesia boasts the largest domestic market in the Asian continent. This potential makes company registration in Indonesia attractive for foreign entrepreneurs;
- Historically, foreign investment in Indonesia was in the manufacturing and mining sector. Healy Consultants encourages international investors to focus on Indonesia’s vast services sector. The services sector in Indonesia is going through a massive transformation and there is massive demand for quality, innovative service providers. It is expected demand for services will outweigh supply in the near future, making Indonesia ideal for your company’s expansion goals;
- Because of the abundance of labour and raw materials, Indonesia’s reputation as a manufacturing hub is growing considerably. The country is rich in several minerals and is one of the leaders in agricultural products, which is advantageous for entrepreneurs interested in starting a business in Indonesia;
- Compared to Western countries, the cost of living in Indonesia is very cheap including food, transport, utilities, rent, wages etc;
- Currently, Indonesia has 59 Double Taxation Avoidance Agreements (DTAA) different countries. Read more about double taxation agreements with Indonesia;
- Batam is the first Special Economic Zone (SEZ) opened in Indonesia, offering several tax incentives to businesses that use the area for manufacturing products for export purpose and most of the transaction to enter goods or services into the area are free from VAT, import duty and Local Service Tax.
Disadvantages of Indonesia company registration
- An Indonesian company, in the form of a PMA, requires a minimum of US$100,000 paid up share capital;
- Indonesia business registration is hampered by restrictions on foreign investment in Indonesia, uncertain government costs and a lack of regulatory transparency. Consequently, it takes about three months to fully complete company registration of an Indonesian PMA. Foreign investors interested in registering a company in Indonesia should only sign business contracts after the PMA is fully registered;
- One of the biggest business challenges in Indonesia is government red tape, bureaucracy and corruption. When there is ambiguity about Indonesia law, it gives rise to corruption and unnecessary delays in executing deals in the country;
- An Indonesian PMA requires a minimum issued share capital of US$257,000 to obtain approval by the BKPM – Indonesia’s Capital Investment Coordination Board. This amount must be deposited in a bank before business registration in Indonesia;
- An Indonesian company is liable to pay corporate tax of 30% on income sourced in Indonesia and internationally. Capital gains are taxed up to 30%.
Why invest in Indonesia?
Frequently asked questions
How many directors are required to register a new firm in Indonesia?Only 1 director is required for company formation in Ireland.
How many shareholders are required for Indonesia LLC registration?To open a company in Indonesia, at least 2 shareholders are mandatory.
How to register a company in Indonesia?For registration of an Indonesian business, our Client will be required to i) reserve a company name ii) obtain a lease agreement iii) open a corporate bank account to deposit share capital iv) sign company setup forms and obtain certificate of incorporation and v) register for tax and VAT.
Healy Consultants provides all Indonesia company registration services and will assist our Clients at every step.
Will I have to travel to register an LLC in Indonesia?No, Healy Consultants does not require our Clients to travel to Indonesia for registering a company in Indonesia.
How long will it take to register a new business in Indonesia?It takes on average 17 weeks to complete registering an Indonesian company.