To get the business registration number Indonesia, the company must pass the process of establishment. The company’s founding process can be done in three ways:
- One, forming a local representative of an international company. The advantage gained if you choose the first way that you will easily get the opportunity favored by the people of Indonesia. Economic and population levels make Indonesia the main attraction for building a business.
- Two, by forming a new local company. You can officially start your business company in Indonesia and have the same rights and responsibilities.
- Three, establishing limited liability company with design of foreign direct investment. The establishment of foreign companies in Indonesia is very appropriate and promising for new business companies.
Advantages of Getting a Business Registration Number Indonesia
When you are ready to decide the way how you establishing your company, then it is the right time for you to start your business in Indonesia officially. You also could have the same rights and also responsibilities than any other company from local Indonesia.
- You can enter your company to join and take participate in all tenders in the country of Indonesia.
- It is very recommended if you want to do some import and other business, you should apply for a license. You may apply for your company product registration so that the import process can run well.
- Foreign employee in your company, including you can apply for a temporary staying card and also a work visa) under your company name.
- Foreign clients or other visits may directly obtain business visas sponsored by your company.
Ownership of foreign companies can reach 100%. Foreign ownership maximally depends on the classification of the business in accordance with those set out in the Investment Negative List. Although you are foreigners, you still can change your ownership state from 0 to 100% depending on the business field you choose.
To establish a foreign company and obtain an Indonesian business registration number, at least the company has two shareholders. Individuals or companies could be the shareholders of the company.
An investment plan needs approximately US $1 million. The Indonesian Investment Coordinating Board needs some foreign investors to give a minimum investment plan of US $1 million, of which 25% must be paid. However, foreign companies don’t have any right to open a bank account until the merger process is complete. You only need to collect a notary statement that money in this amount will be transferred after the merger is completed.
But under new regulations all new foreign companies must have financial audits before they apply for a permanent business license and also moreover relevant permits (import licenses, etc.) that are important to many companies. The new regulation should ensure that all foreign investors are aware of their investment plans and not only submit investment plans to the Investment Coordinating Board is only on paper, something that often happens before.
Selected Industry needs Some Licensing requirements. A special license are required by some business activities such as restaurant or hotel operations.
Indonesian Law. Having arranged foreign agencies and entrepreneurs intending to for creating a form of local company owned by foreign investors must go through procedures in accordance with Indonesian law and regulations based on Law no. 25/2007 on Investment and Law no. 40/2007 on Companies with Limited Liability.
The Process of Obtaining a Business Registration Number Indonesia
Any registration process and establishment of the company, including the procedure takes 5-10 weeks.
- The first is that the company must obtain the company name approval from the Ministry of Justice and Human Rights. This process takes at least four days.
- Secondly, look for Approval of Main License from Indonesia Investment Coordinating Board. This takes about twelve days.
- Third, Preparation of Articles of Association by a Notary which takes approximately four days.
- Fourth, the business owner obtained a Certificate of Domicile from a local government office that could be processed for about three days.
- Fifth, the business owner will get the Taxpayer registration number and the VAT number in the tax office. This process takes three days.
- Sixth, business owners are required to open a bank account on behalf of the company. For this process you just need a day.
- Seventh, the business owner can finally get the Deed of Establishment from the Department of Law and Human Rights obtained for twenty days.
- The final process takes approximately twenty days ie the business owner will obtain the Company Registration Certificate from the local government.
After eight steps in the business registration process is done, the company will obtain the registration number of Indonesian business. Profit is obtained if the company has a business registration number that means the company has been recognized by the state, so that in running its business will be protected by applicable law.
Companies that have a business registration number Indonesia will automatically enter the list of state-recognized companies. With this recognition, the public will believe in all the performance and activities of the company.
If the company does not have a business registration number, then at any time there is an inspection from the government, the company can be frozen and dissolved. Communities can also report companies that do not have permits because they would be considered illegal and irresponsible. Illegal companies like this are usually afraid of taxes and run a business that is not recognized by Indonesia.
If you feel your business is legal and does not violate Indonesian law, do not delay to register your company immediately and get the business registration number Indonesia, so that your business can run smoothly.