Indonesia company registration

DOING BUSINESS IN INDONESIA IN 2017

Since 2003, Healy Consultants Group PLC has been effectively assisting our Clients with i) business registration ii) Indonesian corporate banking solutions iii) resident director and iv) accounting and legal requirements.

SummaryWholly foreign owned LLC Fast business setup solutionFree zone LLCLocal nominee owned LLC Representative Office
Also known asPMAPT-PMA conversionKPB companyPTKPPA
Best use of company?All products and servicesClose a customer deal nowManufacturing and export tradingTo secure public fundingMarketing & research
How soon can you invoice Clients/sign sales contracts?3 months6 weeks3 months6 weeksCannot
How soon can you hire staff?3 months6 weeks3 months6 weeks3 months
How soon can you sign a lease agreement?1 week1 week1 week1 week1 week
How long to supply corporate bank account numbers?4 months10 weeks4 months10 weeks4 months
How long to supply company registration/tax numbers?3 months6 weeks3 months6 weeks3 months
Corporate tax rate on annual net profits?25%25%25%25%0%
Limited liability entity?YesYesYesYesNo
Government grants available?YesYesYesYesNo
Government approval required for foreign owners?YesYesYesYesYes
Resident director/partner/manager/ legal representative required?YesYesYesYesYes
Minimum paid up share capital?US$200,000US$40,000 within 2 months and US$200,000 within 1 yearUS$200,000From US$3,745none
Can bid for Government contracts?YesYesYesYesNo
Corporate bank account location?Bank NegaraSCB Indonesia Citibank IndonesiaBank MandiriDBS Indonesia
Can secure trade finance?YesYesYesYesYes
VAT payable on sales to local customers?10%10%10%10%None
Average total business set up engagement costs?US$29,740 US$60,200US$18,100US$16,900US$19,250
Average total engagement period?4 months4 months4 months3 months4 months

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Accounting and tax considerationsWholly foreign owned LLC Fast business setup solutionFree zone LLCLocal nominee owned LLC Representative Office
Statutory corporate tax payable?25%25%25%25%0%
Legally tax exempt if properly structured?NoNoYesNoYes
Group HQ tax incentives?YesYesYesNoNo
Must file an annual tax return?YesYesYesYesYes
Must file annual financial statements?YesYesYesYesYes
Must appoint an auditor?NoNoNoNoNo
Access to double taxation treaties?YesYesYesYesNo
Withholding tax on payments to foreign shareholders?20%20%20%20%None
Company RegistrationWholly foreign owned LLC Fast business setup solutionFree zone LLCLocal nominee owned LLC Representative Office
Resident director/partner/manager/ legal representative required?YesYesYesYesYes
Minimum number of shareholders/partners?2222Parent company
Maximum shareholding for foreigners?100%100%100%0%100%
Minimum statutory paid up share capital?US$200,000US$40,000 in 2 mo/US$210,000 in 1 yrUS$200,000From US$3,745none
Security deposit to be kept with Government?NoNoNoNoNo
Shelf companies available?YesYesYesYesNo
Time to incorporate a new entity?3 months6 weeks3 months3 months3 months
Can easily convert to a PLC?NoNoNoYesNo
Public register of shareholders and directors?YesYesYesYesYes
Can have preference shareholders?YesYesYesYesNo
Business ConsiderationsWholly foreign owned LLC Fast business setup solutionFree zone LLCLocal nominee owned LLC Representative Office
Good entity for trademark registration?YesYesYesYesNo
Can secure an import and export license?YesYesYesYesNo

Sponsorship by a local citizen required?No, except for a PT company
Our Client needs to travel to Indonesia for business set up?No
Temporary physical office solutions available?Yes
You need a local resident as bank signatory?Yes
Can be wholly foreign owned?Yes
The entity will likely be regulated by?BKPM
Minimum number of directors/managers?1
Monthly VAT reporting to the Government?Yes
Must sign an office lease agreement during incorporation?Yes
Shareholders & directors documents to be attested/translated?Yes
Each foreign director needs a personal income tax number?No
Foreign director needs a residence visa?No
Maximum number of staff allowed?No limit
Expatriate to local staff ratio?1:4
Can secure residence visa for business owner?Yes
Other useful information
What will be included in my customer sales invoice?Click link
This country has signed free trade agreements?Yes
This country is a member of WIPO/TRIPS?Yes
This country is a member of the ICSID?Yes
Average custom duties suffered?9.5%
Government foreign investment approval required?Yes
Average monthly office rental? (US$ per sq m)27
Minimum statutory monthly salary?US$252
Average monthly US$ salary for local skilled employees?US$1,200
US$ deposit interest rate? (1 year average)4.5 - 6.5%
Overseas remittance currency controls?For transactions above IDR 100 million
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Excellent
Crowd funding available in this country?Yes

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For additional information on our company registration services in Indonesia, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi