Quintessential Guide for Offshore Company Setup in Indonesia

Foreign investors continue to look for ideal places to set up an offshore business. And recently, Indonesia is one of the popular choices among other offshore countries. This can be credited to the government’s constant efforts to amend and improves the country’s business framework to attract foreign businesses.

 

The country’s big population provides many business opportunities because it allows different niche markets to proliferate. Also, there will be a higher annual spending since more Indonesians are joining the consumer class. Thus, it makes Indonesia as a worthwhile choice for offshore company setup.

 

Before commencing on a business venture in a new market, it is essential to have the knowledge about company formation and business structures. This blog will guide investors regarding foreign business setup in one of the world’s emerging markets.

 

Basic Facts  about Foreign Company Formation in Indonesia

 

Registering an offshore company means understanding the different business entities and even learning about the minimum investment amounts. This knowledge can be used to shape future business plans in the country.

 

Indonesia has two business entities open to foreigners: foreign investment limited liability company (PT PMA) and Representative office (KPPA). A PT PMA is ideal for companies who want to engage in commercial activities in Indonesia. While foreign investors who seek to engage in market research, networking or feasibility studies, opting for a representative office is the ideal business presence.

 

Many companies are registering under the PT PMA because they can engage in profit-making activities. To set up a company under this business structure, it is essential to know the documents, governing laws, and investment amount.

 

Details of Representative office can be present in this article too.

 

Checklist for PT PMA Company Formation

 

Foreign investors opting for a PT PMA setup should consider these three things during the registration process:

 

Governing laws

*PDF files retrieved from Indonesia-investments.com and Apindo

 

Investment amounts

 

Documents

 

Preparing the necessary documents, investment amount and understanding the governing laws will help foreigners have a seamless registration procedure.

 

Choosing Indonesia for Offshore Company Formation

 

With Indonesia’s economic having a positive in the first quarter of 2018 [Indonesia-investments], this signals the government’s continual efforts to strengthen foreign investments.

 

On April 2018, Simplified Tax holidays had rolled out in Indonesia, a new regulation granting a 100 percent Corporate Income Tax (CIT) cut to new FDI-backed businesses. This further demonstrates the government’s intent.

 

If you have thoughts about setting up your business in Indonesia, it is important to consult with a company formation agent. Leveraging on their expertise to ensure a smooth company set up.

 

If you want to have a further comprehensive idea in regards to offshore business, you can also download our Free E-book now.

 

References:

 

12 Reasons why to do business in Indonesia, Smartcolaw.com

Your Journey Through Indonesia [PDF], PWC.com

How to Establish a Foreign Company (PT PMA) in Indonesia, Indonesia-investments.com

 

Basic Facts about Foreign Company Formation in Indonesia