CFLD Case Study
1. Case Problem
China Fortune Land Development Co., Ltd.(CFLD) is one of the leading industry city developers in China, based in Beijing, with an estimated net worth of more than US$4.1 billion.
In 2015 was one of the planned CFLD projects in Indonesia, called the First International New Industrial City (NIC) project officially approved by the Indonesian government and CFLD is officially entering the Indonesian market to run the project, One of the CFLD initial steps before their proceed whole approved investment, they want to establish 5 independent companies to run their activities in Indonesia include all relevant licenses, permissions and operation compliances related to their sector.
2. Solving and Solution
To Set up a business in Indonesia CFLD confirm to establish 5 PMA companies in Indonesia (read: How to Establish PMA in Indonesia) through a 3-hour Investment Licensing Service (One-stop integration service program called PTSP) which will allow to establish a company in 3 hours with the requirement of a minimum investment of IDR 100 billion (US$ 7.33 million) and/or absorb a workforce of more than 1,000 people to have their preliminary permits. Except for company establishment, CFLD needs to obtain also all licenses and permits to be able to start their project in Indonesia and also the work permits for their management based in Indonesia.
3. Cekindo Services Solution
CFLD appointed Cekindo as the main consultant for their legal entity set up and compliance and engage Cekindo to provide the following services in the initial stage:
- 5 PMA company registration in Indonesia (complete company documents)
- 5 Principle License
- 5 Article of Association
- 5 Deed of Establishment
- 5 Domicile Letter
- 5 Tax ID
- 5 Company Registration Certificate
- 5 VAT payer application
- Investment activity report (LKPM)
- Company document revision
- Company document translation
- Land principal permit (IPR)
- 16 work permit and visa (KITAS/ITAS)
- 3 business visa
- Payroll outsourcing
- Employment report
- BPJS social security and health program registration
4. Result and Impact
All 5 companies were successfully established and the whole company registration process took only 3 hours (registration through one-stop integrated service) with 2 weeks of documents preparation before application. In the initial step CFLD received eight preliminary permit documents including a principal license, tax ID, and work permits (RPTKA, deed of establishment, include the land-booking letter issued by the Ministry of Agrarian and Spatial Planning. And the rest of the documents follow in a short period.
The testimonial from CHINA FORTUNE LAND DEVELOPMENT CO., LTD (CFLD)
“We start cooperate with Cekindo after comparing several consultants, I found Cekindo is a international and professional organization with good understanding of local market. Cekindo helped our company to set up our first Indonesian entity, and also helps with day-to-day operations. Cekindo showed a high level of professionalism. We see the biggest added value in fast start the business in Indonesia, take care of the routine process, therefore we can focus more on our core business.”
Max Yang – President, Indonesia Region at China Fortune Land Development Co.,Ltd.
5. Challenge and Cross Services
The whole process was carried out within a greatly shortened period of 3 hours of service and request precise preparation and detailed knowledge of all individual laws.