Terms and Procedure to Establish a Company in Indonesia

Procedure to Establish a Company in Indonesia – The company is an organization founded by a person or can also be a group of people to conduct production activities which then do the distribution to meet the economic needs of human beings so that obtained profits. Production and distribution activities are done by combining various factors, namely; human, capital and also nature.

To establish a company requires various terms and obligations that must be met. Each country usually has its own policies. Similarly, with Indonesia, the company’s establishment procedure in Indonesia must also have rules and conditions that must be met. However, before reviewing this procedure to establish a company in Indonesia and requirements, you should first understand the forms of business entities or companies.

1. Format of Business Entities in Indonesia

Type of business entity or company in Indonesia is quite diverse. The manifestation of this diversity can be seen from the number of people who set up the business as well as the necessary capital. Here are some types of business entities in Indonesia that can be established by business entities, individuals, or groups:

• An Individual, a company owned by an individual within the whole enterprise or referred to as a sole proprietor. The capital used to make this type of business can come from loans or other sources. The operations of the company are all dependent on the business owner. Thus, when the owner obtains profit or loss all is borne by the owner of the company.
• The Firm and CV Association (Comanditaire Venootschap) is a company with ownership of two or more persons in accordance with the established agreement. This company can be built with limited capital and not specified minimum capital required. This type of company is suitable for people who have limited capital or small capital. Examples of businesses that can fall into this category of company type are printing, service bureaus, catering or food, and also trade.
• Limited Liability Company (PT) is a separate legal entity established by law. Ownership of this company can be divided in the form of shares. To establish this PT must meet the initial capital requirement of fifty million Rupiah. These capital conditions should be included in the cash of PT at least 25 percent of the total capital used. This type of company is suitable for someone or groups who have enough capital and want to make a big company.

2. Company Category in Indonesia

The procedure of establishing a company in Indonesia should also look at the group of companies to be established. In Indonesia there are many classes or categories of types of companies that can be built. Here are some of the existing companies in Indonesia:

• Service Company, is a company whose activities are to provide or sell services to others. Examples of this group of companies include; accounting firms, lawyers’ offices, Laundry, mail service bureaus, tutoring or courses, and other service companies.
• Trading Company, is a company whose activities in the form of buying finished goods for resale without being processed first. Examples of this company are; vehicle dealers, supermarkets, grocery stores, accessories store, electronics stores and companies selling other finished goods.
• Manufacturing Company/Factory/Industry, is a company whose activities process raw materials into finished goods and sell them. Examples are shoe factories, bakeries, and industrial companies that process other raw materials.

3. Terms of Establish Companies in Indonesia

For those of you who have a desire to build a business must know procedure to establish a company in Indonesia. However, before that you should first meet the requirements that must be met to build a business. Here are some requirements or data files you should complete:

• Company name to be established with at least three alternatives
• Business Field to be built
• Firm address
• The names of the Shareholders are complete with ID cards
• Board of director
• Authorized Capital of the Company and Paid-in Capital
• Composition of Board of Directors and Commissioners complete with ID card from Director and Commissioner
• NPWP Director
• Pas photo 3×4 2 sheets

4. Procedure to establish a company in Indonesia

Once you understand the type of business to be established, the product to be marketed, and the terms are completed, the next step is to follow the procedure for establishing a company in Indonesia. The following are the procedures you should go through:

• Make a company deed. Company certificate is necessary because the company is a legal entity. In general, the deed contains the name of the company, the company field, the name of the owner, authorized capital, paid up capital, and the management of the company.
• Receiving certificate of business domicile. This letter can be obtained from the Village Office or Village Head Office where your company is established. Based on the letter, the District Office issued the same letter. You need a copy of the company deed to obtain a certificate of domicile. If the place of business is a lease, it will be required to copy the lease agreement of the place of business. however, where the business is self-owned, a photocopy of land certificate and IMB or photocopy of payment receipt of the UN will be required.
• Take care of company NPWP. NPWP company is indispensable in the establishment of the company. You need a copy of the company deed and certificate of domicile to obtain the NPWP. There is usually a Tax Office in a certain region that asks for a copy of the Ministerial Decree on the endorsement of the company deed and there is also a request only certificate of domicile and corporate deed. In general, you only take half an hour.
• Handling SIUP or Business license, this SIUP is required for your company to operate.
• Take care of Company Registration Certificate. You can take care of Company Registration Certificate or TDP in Indonesia after obtaining SIUP.

The main purpose of establishing a company whose activities are trading and selling is to make a profit. Therefore, you should have a legal company and follow all the procedure to establish a company in Indonesia. It aims to enable your company to operate safely and minimally from disruption. Hopefully some of the above explanation can help you who are looking for information about the need in establishing a company.