Not only should every entrepreneur have the fortitude and energy to start a business in Indonesia, but they should also meticulously consider several factors and be constantly informed to pursue a business idea.
With the right information, only you can spin your brilliant idea into an enterprise that will eventually bring you sustainable profit. You will first have to consider the type of legal entity for your business, and the requirement of the shareholder for each entity.
How many shareholders do you need for company incorporation in Indonesia? It depends on the business structure that you choose.
A foreign-owned company, or a PT PMA, is one of the legal entities in Indonesia that require shareholders.
So if you plan to start a PT PMA in the country, you will need at least two shareholders. Your PT PMA’s shareholders can be corporate entities, individuals (locals or foreigners), or a combination of both.
If your PT PMA is fully owned by foreign nationals, the foreign owners must sell a minimum of 5% shares to an Indonesian citizen or an Indonesian legal entity in the country.
Furthermore, a public company has the most rigorous requirement compared to the PT and PMA: it needs at least 300 shareholders.
The shareholder requirement in terms of its number does not apply to every entity in Indonesia.
If you are running a business with sole proprietorships or civil partnerships, you don’t need any shareholders.
Business owners set up a sole proprietorship to have full control of the company and prevent others from owning the company’s shares. As a result, shareholders are not necessary for this type of structure.
Civil partnerships can be divided into limited partnerships (CVs) and firms. Both of them do not need any shareholders either. Partners who are in a civil partnership have their own active or passive roles to play in the company and that’s why shareholders are not required.
Here are some important distinctions between PT and PT PMA you should be familiar with before deciding to incorporate your company in Indonesia.
Local-owned Company (PT)
Here are the main characteristics of a PT in Indonesia:
Foreign-Owned Company (PT PMA)
A foreign-owned company in Indonesia has the following distinctions compared to a PT:
These are several important steps that you will need to take if you are considering company incorporation in Indonesia.
It is prudent to partner with a professional provider with local expertise to ensure your business complies with every step of your business venture.
Cekindo offers tailored business solutions for your company incorporation in Indonesia, including legal and financial consultancy. Our highly-qualified team offers expert support with both global and local perspectives to ensure a smooth incorporation process.
Contact Cekindo now and we’ll help you construct the best strategy to capitalise on your market opportunities in Indonesia. Fill in the form below.