Indonesia is a member of the G20 group of countries, and this makes it a promising business destination. Indonesia is classified as a bureaucratic country. In Indonesia, foreign investments are controlled and regulated by the Indonesia Investment Coordinating Board. Indonesia companies are established based on Indonesia’s Company Law No. 40 of the Year 2007. To start a business, it is essential to find the best registration company service as per the country’s rules and regulations. Here are the steps that you should follow to start a company in Indonesia.
Steps you need to follow to register a business in Indonesia:
Registering a business might seem complicated in a new country. But if you understand the rules and regulations and acquire a qualified assistant, it will be easy to handle the work. This process is similar for both local (PT PMDN) and foreign (PT PMA) companies, even though the conditions are different. There are three broad steps to register a business in Indonesia.
1. Getting a Deed of Establishment:
Drafting Articles of Association should include the following details:
- Your company’s name and location,
- Your company’s objective and business activity,
- Details about your amount of capital,
- The amount and value of your company shares,
- The titles, amount of members, appointment and discharge procedures of your Board of Directors and Commissioners,
- Methods and locations to hold your shareholder meetings, and
- Strategies for using and distributing your company’s profit and dividends.
Submitting your Deed of Establishment
In the next step, you need to sign the Article of Association. In the presence of the Notary, all the shareholders have to sign the document. If a shareholder can’t attend, he/she has to use a power of attorney.
The Article of Association will be sent to the Indonesian Ministry of Justice and Human Rights for approval by the Notary. The ministry will issue the Deed of Establishment. This symbolizes that the government has registered the business as a legal entity.
Article of Association and Deed of Establishment are critical documents to apply for other licenses and a business registration number.
2. Getting a company tax ID
The next step is to apply for the company tax ID at a local tax office. The government will send your original tax ID to your company’s address. After getting your tax ID, you also had to get a domicile letter from the regional government.
However, Jakarta’s local government released a new regulation in May 2019 that made domicile letters unnecessary for new companies in this city.
3. Getting a Business Registration Number
In 2018, the Indonesian government launched the Online Submission system, making the company registration steps simpler. Using the system, you can get the remaining documents, including your business registration number, all at once. These documents include:
- Your import license.
- Customs Identification Number.
- Your business registry number.
- Automatically registers your company with the government’s Health and Social Security System.
Generally, trading and service companies will be able to start doing business after getting the registration number. However, some industries, like manufacturing and healthcare, need additional licenses before they can operate. Because business activities in Indonesia can vary widely, you should probably consult an experienced professional to discuss what you need here.
We make it easier to incorporate your company
The registration process has gotten a lot more convenient with everything becoming online. However, it can still be difficult for people who aren’t familiar with the system, not to mention the lack of ground support. It’s essential to know the basics of every step. However, consulting with a professional to help guide the process of business registration in Indonesia. 3E Accounting helps in setting your business in this new country with ease.
3E Accounting provides help with a professional consultant to incorporate your business in Indonesia. This will make your work more comfortable, and professionals will ensure a smooth and efficient result.