If you are a foreigner planning to set up a company in Indonesia, you must begin by understanding the legal procedure to be followed. If you do things blindly, you will have yourself to blame for the failures and consequences that might follow.
We have seen many people with good investment ideas launching businesses in Indonesia but unfortunately, end up failing simply because they lacked the right guide. We vow not to stand and watch you go the same route and that’s why we’ve compiled this post to let you know the basic procedure of company formation in Indonesia.
How Do You Set Up A Company In Indonesia?
The following are the mandatory steps to be observed by anyone looking to set up company in Indonesia
- Find Whether Your Business Field Exist in the Country
Before you can even go further with your company formation plans, start by inquiring from the local government whether the field you wish to venture into is open to foreigners. If it’s open proceed to the next steps. However, if it’s not available, you can seek help from experienced consultants and let them advise you on alternative open fields you can venture in.
- Prepare a Name for Your Company
Once you’ve confirmed that your business field is available or discovered an alternative viable field, the next step involves securing a name for your upcoming company. The name will represent your business activities and should follow the criteria below
– Should have 3 words
– Should not resemble a name of another existing company
– Should not feature vulgar/obscene words
- Source for Sufficient Capital
As a foreigner coming to launch your company here in Indonesia, you should know that there’s minimum capital needed. For you to qualify, you should submit a minimum of ±USD174, 750 (±IDR 2.5 billion) of paid-up capital. Also, you need to invest at least ±USD698, 998 (±IDR 10 billion) in total.
- Prepare Business Address
If you must get your company registered in Indonesia, then make sure you obtain an official address. You need the address for administrative purposes and mailing.
- Spare a Minimum of 2 months
Unless you work closely with well-established marketing agencies in Indonesia, you will not set up a company in Indonesia today and see it running tomorrow. You have to allow yourself enough time, say, 2 months, to accomplish all the processes.
The exact time you need depends on the complexity of the business you need to launch.
- Build Relationship, then Expand
Just like other places you may have invested previously, Indonesia’s business culture is based heavily on trust and existing relationships. As such, strive as much as you can to network and broaden your connections.
- Recruit the Right Personnel
The last step of setting up your business profile in Indonesia involves recruiting the right personnel to manage your business operations. Ensure you have a clear understanding of the labor laws in the country and work hard to create the best team of employees.
The above are the most important things every entrepreneur should observe before setting company profiles in Indonesia. Make sure you observe the guide keenly if your efforts and attempts must beat fruits!