V. Doing business in Indonesia 2022 An Introduction to Doing Business in Indonesia 2022 covers the following: A. Corporate establishment; B. Human resources and payroll; C. Tax and accounting; D. Audit and compliance.
Topic
Feature
A. CORPORATE ESTABLISHMENT
Requirement and Process of company registration based on Type of Legal Entities: • Local Company, Foreign Direct Investment Company known as a Limited Liability Company, and Representative Office.
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1. LOCAL COMPANY (PT) A foreigner can start doing business in Indonesia as a local citizen or a foreign investor under a local nominee arrangement as this kind of company allows only 100% local ownership. On the contrary to other legal entities, a local company is not a subject to such strict requirements and limits. Local Company (PT) is the most common legal entity in Indonesia Even though a local company is intended for Indonesian citizens only, there are some circumstances under which a foreign investor can incorporate a local company in Indonesia as well. Registration Process of a Local PT Step 1
Company Name Application Submit your company name to the Ministery of Law & Human Rights
Step 2
Article of Association Preparation This requires presence of notary
Step 3
Deed of Establishment Approval Approved by The Ministery of Law & Human Rights
Step 4
Certificate of Domicile Acquisition Obtained form local government to show business location
Step 5
Tax Payer Registration Number (NPWP) Application to secure other licenses, banking activities, and fulfilling tax obligations
Step 6
Application of NIB Alongside NIB, Business Licenses and Location Permit will also be granted one day following the registration via OSS
Benefits of a Local Company in Indonesia for Foreigners Even though there are other legal entities particularly designed for foreigners — a limited liability foreign-owned company and representative office — starting a local company might bring more benefits to some foreign entrepreneurs.
SETTING UP BUSINESS IN
INDONESIA
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