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Procedures for Foreigner to Establish a Company in Indonesia

Procedures for Foreigner to Establish a Company in Indonesia – The Government of Indonesia has revised the provisions concerning the Guidelines and Procedures for Permit of Investment Principles which have been applied to facilitate Foreign Investors in investing in Indonesia. To start or continue the business, it must have a Permit Principle of Investment or often also called the Principle Permit.

In addition, to obtain the permit must follow procedures for foreigner to establish a company in Indonesia. Companies in Indonesia can consist of three types, among others; Foreign Direct Investment as a Limited Liability Company, Local Company, and Representative Office. In making this investment must meet the various requirements, procedures, benefits to be gained.

  1. Investment Benefits in Indonesia

An investment made will definitely benefit a lot. The realization of these benefits can be felt by companies that are given investment and investors who provide capital. In fact, benefits can be felt by the nations and countries where foreign investment companies stand. Here are the various benefits that can be gained when doing an investment:

  • Acquire sufficient new capital for development and development. In addition, this investment will also have an impact to increase the country’s foreign exchange as well as the number of new companies in Indonesia.
  • Foreign investment in Indonesia can increase the tax revenue for the state.
  • The benefits that can be indirectly felt from this investment is to reduce unemployment in Indonesia. This can happen because with the presence of many new companies in Indonesia can solve the problem of workforce Experienced in the field of technology.
  • Enhance a wider experience in technology and increase knowledge.
  • Gain political protection and territorial security. This is because with the establishment of foreign companies in the territory of Indonesia, it can create political protection in the territory of Indonesia that has overshadowed foreign companies.
  1. Terms of Investment Permit

The important thing to be prepared for investing is the terms of licensing. These conditions must be met before proceeding procedures for foreigner to establish a company in Indonesia. The following is the Foreign Direct Investment License requirement. Conditions to be prepared include:

  • Application Form
  • Identity Card or Passport Director
  • Identity Card of Share Owner or may also be a copy of the shareholder passport
  • Taxpayer Identification Number of Stock Owner Company in the form of Indonesian Citizen
  • Taxpayer Identification Number of Company of Directors in the form of Indonesian Citizen
  • Photocopy of Land Certificate or photocopy of lease
  • Company name or company data in the form of; deed of establishment, certificate of approval from the Decree of Minister of Law and Human Rights, Decision Letter for Business Domicile, Company Taxpayer Identification Number, SIUP, TDP, and PFM.
  • Field of Business undertaken
  • Name of Owner of Capital and Percentage of Shares Ownership
  • Description of the undertaking
  • Name and photocopy of Identity Card of Commissioner
  • Business Domicile Address and Company Telephone Number
  • Plan of Location of Business Place
  • Company Seals
  • Photo of President Director
  • Environmental Management Statement Letter
  • Family Card if the President Director is Female
  • Environmental Permit or Interruption
  • Power of attorney when the arrangement of this permit is authorized to the company
  1. Procedures for Foreigner to Establish a Company

After all requirements are met, the next step is to follow the procedures for foreigner to establish a company in Indonesia. The following are the steps or procedures to be performed:

  • The name of the selected Limited Liability Company has been approved by the relevant Minister and the permit from BKPM has been issued, the process of establishing the Limited Liability Company of Foreign Investment may commence.
  • Make copies of deeds. A copy of this deed will be completed within approximately two weeks from the signing of the deed.
  • Conduct the management of the company’s domicile and Principal Taxpayer Number on behalf of the approved Limited Liability Company. this process can last for approximately two weeks. In managing these letters, the business owner can take care of the taxable businessman’s letter. When making the processing of this tax letter, then the company to be established this will be conducted by the taxation survey.
  • Conducting account opening on behalf of Limited Liability Company. In addition, depositing share capital in cash to the Company’s cash.
  • Submit proof of capital deposit to the notary for completeness of application of ratification at the Ministry of Justice and Human Rights of the Republic of Indonesia.
  • Apply for approval to the Ministry of Law and Human Rights. In this process takes approximately within 1.5 months.
  • Maintain a list of companies and mandatory list of companies after the endorsement of the Minister of Law and Human Rights has been completed.
  • Take care of state news that takes three months.
  • Conducting location permits for industrial companies and completing rules on harassment, as well as industrial licenses.
Read More :  Things to Avoid in Registration for Foreign Investment in Indonesia

Limited Liability Company with Foreign Investment can make many benefits and progress in technology and state revenue. Hopefully the brief explanation about procedures for foreigner to establish a company in Indonesia can be helpful for people in need. Happy business and successful.

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