We consult and advise on the set-up of Indonesian company structures. Company formations entail the procurement of trade licenses and approvals from area administrations.
From the onset we invite all potential clients to communicate with our office their intentions and arrange an introductory consultation to discuss at length the best business strategies conducive to their plans.
Preliminary approvals involve acquiring a business domicile (lease or title ownership of property) for the registration of the company and verifying local Adat protocols.
An outline of licensing pre-requisites to form an Indonesian company:
- Company Articles of Association
- NPWP – Company tax number
- Company bank account
- Ministry of Justice Approval
- Building Permits
- SITU / SIUP Operational license
- UKL –UPL Environmental Impact report
- Health Dept Approvals (if applicable)
- Trade Department registration
Capitalized company set-ups are classified as follows:
PT – Perseroan Terbatas, limited liability Indonesian owned shareholding.
CV Comanditer Venonscaft, unlimited liability Indonesian partnership company
PT/PMA, Perseroan Terbatas Penanaman Modal Asing, limited liability allows for foreign national and Indonesian shareholding. Foreign shareholding approvals are subject to application and approval by the Investment Regulatory Board. Once an Investment approval is issued
An Indonesian company is generally operated under a director-ship as appointed by the shareholders.
Licensing costs are subject to review and can vary subject to the domicile (area) of the business and sector of trade the operations are classified under. We offer obligation free quotes for all company formations once we can categorize the proposed company.
The approximate time frame for finalizing the formation of this type of company is approximately 4 – 6 months, the Company is permitted to operate concurrent to the procurement of licensing. This time frame can vary depending on the provision of a correct building permit for the company location and delays that may be caused by local village administration ceremonies. Once we have all the company licenses issued, KITAS visas (refer to Immigration) can be applied for foreign national employees of the company.