Cekindo Business International is now InCorp Indonesia. Learn more.
InCorp offers a comprehensive range of solutions to ease the company registration process and help you create a viable roadmap for your business.
Get assistance from experts with a decade of experience in assisting international business owners expanding into Indonesia.
Avoid any bureaucratic complexity when closing your company by engaging with our experienced legal advisors.
What type of legal entities should you choose to register a company in Indonesia? We can assist you in choosing which is the best one to grow your business.
To help businesses survive during this unfortunate time, InCorp provides corporate recovery in Indonesia and insolvency services.
Obtaining property & land ownership in Indonesia offers some challenges for foreigners. However, buying property in Indonesia is attainable with specific resources and documents.
Recent regulatory changes have a knock-on effect on Indonesia's Merger & Acquisition landscape. Check on how we can navigate you through your M&A in Indonesia.
InCorp provides Virtual Office services Indonesia in various locations: Jakarta, Bali, Semarang, Surabaya, and Batam.
Business process outsourcing in Indonesia is a viable option to streamline bureaucratic complexities that hurdle your business expansion objectives.
InCorp offers a complete range of accounting service Indonesia, from tax reporting to auditing.
With professional financial audit services from InCorp, you can ensure all accounting activities are accurately recorded and compliant with Indonesian regulations.
Using an Employer of Record service to set your roots in Indonesia opens the doors to new opportunities in the country.
Financial and Operational Resilience services from InCorp are developed to support businesses and help them survive during this difficult time.
Payroll services in Indonesia are a practical solution to avoid unnecessary complexities while you focus on growing your business.
Using a recruitment agency in Indonesia will help you hire the best candidates for your company, saving you time and money.
Tax consulting in Indonesia are the shortcuts to fulfill the administrative obligations with high accuracy and in a timely manner.
The Indonesian government promotes tax holidays as one of the fiscal incentives to attract major foreign direct investment in Indonesia.
Operating businesses in Indonesia, entrepreneurs must comply with the regulations accordingly, especially concerning taxes.
Immigration in Indonesia is one of the strictest and most complex processes due to its ever-changing regulations. InCorp provides a seamless experience in obtaining your stay and work permits.
Avoid any hassles by engaging with an experienced visa agent in Indonesia.
A dependent visa Indonesia is a document that allows foreigners to bring their family while settling down in the country.
Investor KITAS Indonesia is a stay permit that offers many benefits to investors that invest in the country.
Overseas Visas are required for Indonesians who are planning to stay abroad for an extended period of time.
KITAP is a permanent stay visa for foreigners who have intentions to stay in Indonesia.
Foreign retirees often find their plans stuck due to the complex visa application process. InCorp helps expedite the process.
Obtaining a social visa is daunting if you are not familiar with the country’s complex bureaucratic processes. Consult with us for a seamless Indonesian visa application experience.
Foreigners married to an Indonesian citizen are eligible for a spouse-sponsored KITAS.
Learn how to obtain an Indonesian tourist visa seamlessly and securely, directly from a trusted visa and travel agent.
Get assistance from a trusted visa agent in Indonesia to make your traveling plan to Indonesia even more convenient.
Expedite your Indonesian work permit application process by engaging with a trusted visa agent.
All imported goods must obtain permission granted by specific governing bodies prior to entering the local market.
Learn more about the cosmetic product registration services in Indonesia.
Learn more about exporting goods to Indonesia.
Learn more about the food & beverage product registration services in Indonesia
Learn how to go through halal certification in Indonesia directly from experts successfully.
Learn more about the health supplement product registration services in Indonesia.
Learn more about the household product registration services in Indonesia.
Learn more about importing goods from Indonesia
An Importer of Record in Indonesia is a legal service that enables companies to import products into Indonesia, through an import partner.
Learn more about the medical device registration services in Indonesia.
Register a trademark is necessary to avoid legal issues in the future. InCorp can help you with Trademark Registration services in Indonesia.
Compliance is one of the most challenging parts of business overseas, especially in a country packed with complex bureaucratic processes such as Indonesia.
Updating business documents to align with your company’s growth can be a hassle.
Due Diligence services are needed to assess the credibility of the company or partner you wish to work with or acquire in Indonesia
From Company Regulations to Employment Agreement Drafting, Employment law services from InCorp will help you to compliance with employment policy in Indonesia.
InCorp’s legal consultation services in Indonesia are crafted to help your business settle and fully comply with the latest regulations.
Organizations must continuously evolve and transform to remain competitive and relevant in today’s global environment ...
Companies face many opportunities and challenges as a result of a changing market and regulatory landscape ...
Adopting Environmental, Social, and Corporate Governance (ESG) practices can improve your company’s value ...
Risk Management services from InCorp Indonesia can assist companies in building confidence when making future business decisions ...
Transfer Pricing in Indonesia occurs when a company performs an internal transaction within the same business group or its subsidiaries
InCorp's transfer pricing advisory services in Indonesia are marked by the objective to support our clients' business needs.
Our transfer pricing services provide you with a hassle-free experience while still complying with the legal aspects of transfer pricing in Indonesia.
As the market-entry consulting firm in Indonesia, InCorp provides a wide range of customized solutions to ease the business incorporation process.
Both natural and legal persons are entitled to open a bank account in Indonesia. Find out how to open a bank account in Indonesia, here.
InCorp can help you find a trusted Buying Agent Indonesia for product sourcing in Indonesia. Contact us now for a free consultation.
InCorp can help foreigners to get the driving license in Indonesia, whether SIM A or SIM C. Check out the requirements and the procedure, here.
IMEI Registration in Indonesia is necessary to ensure telecommunication devices from abroad can function properly in Indonesia.
With offices in Jakarta, Bali, Semarang, SUrabaya, and Batam, InCorp is ready to assist you as a local partner and distributor in Indonesia.
InCorp can help you to select the trusted local partners to import and distribute your products in Indonesia.
Improve your business by knowing the market conditions in Indonesia through market research services in Indonesia.
InCorp can help you gain information about your competitor's product through mystery shopping.
Every country has its own regulation and culture. As a foreigner who is willing to start setting up a company in a different country, a total understanding of the respective country’s law and culture is extremely needed. This is no exception for Indonesia. To legally set up a PT PMA, you should understand the process of foreign company registration in Indonesia.
A discussion with a reputable and trusted local consultant regarding the setting up of your PT PMA, the making of licenses, permits, and visas are absolutely recommended since the foreigner needs an assistant who is familiar with the local law and bureaucracy.
However, as a foreigner, you still need to understand how the entire process is to avoid fraud and mistakes during the registration process.
This article will give you illustrations of some common mistakes that many foreigners made during their company registration process in Indonesia.
No matter how good you are in business and how excellent your knowledge in law, you have to understand that every country has its own nature and culture when dealing with business and legal matters. You may read the Indonesian Company Law No. 40 the Year 2007 and try to meet every detail of it to establish your company in Indonesia, but still, you may get confused when you finally have to deal with the bureaucracy.
There are so many documents and permits that you have to prepare to register your company and making all of them yourself will be daunting tasks. Don’t risk having your application refused or delayed because of your lack of information and understanding of Indonesian Company Law.
Only for your information, you need to deal with the lowest government office (the district office to get your residence permit, personal domicile letter, and probably other documents signed by a district head) to the high-level government offices like BKPM and Ministry of Law and Human Right. Only a minor mistake due to your lack of understanding will result in your time and money being wasted for a returned or delayed registration document.
You have to make sure that the local consultant that you chose to register your PT PMA has the expertise in doing their job. Knowing whether or not an agent is professional and competent can be found by doing the following things.
When you want to establish a PT PMA in Indonesia, your field of industry and business activities must be clear. Company registration is actually a simple and easy process as long as every document needed for the registration process is processed legally and then given completely.
In Indonesia, there are certain fields of industries that are restricted for PT PMA. The list of the restricted industries and industries prohibited for foreign investment can be seen in the negative investment list.
To know further about the negative investment list, you need to consult with the local agency that will help you with the registration process.
One of the documents needed to register your PT PMA is the letter of domicile, which states the location where your PT PMA head office location is. This document is later used to create a Tax Card (NPWP) in the local taxation office.
If you are not certain about where do you actually want to run your business, you will encounter several problems in the future. First, you need to spend extra time and money because you have to change the location of your office. Second, you also need to close your NPWP of the previous office and declare a new one in the new place.
Therefore, it is really important to decide where your company head office will be in the very first place for changing the location of the company head office is both complicated and costly. Some cities in Indonesia, such as Jakarta, allow a PT PMA to have a virtual office. However, you have to consult with your consultancy agent.
The Indonesian government has really strict regulations regarding the minimum amount of capital a PT PMA must invest. This is done by the government to protect local businesses, with the hope that foreign investors cannot easily set up the PT PMA in Indonesia.
Based on the Indonesian Law, it is stated that a PT PMA must have at least Rp. 10 billion capital. Regardless of the currency rate, the government has set the amount in the dollar, which is not less than US$ 1 million.
You have to remember that when you want to set up a large enterprise in Indonesia, a minimum of US$ 1 million of capital must be met. Otherwise, a PT PMA cannot be established, because a PT PMA is considered a large enterprise.
You may start a lower-scale company (a medium-sized business) and upgrade it once you have higher capital, but upgrading your company and making changes on the company’s capital is a complicated and costly thing. So, we strongly recommend you to start your company with higher capital instead.
Once the entire foreign company registration process in Indonesia is done, a trusted agent will return all of the legal documents to you (the client).
A common trick done by the local agent is to keep all of those documents with the hope that you will use the same agent to deal with any issues that happen in the future, for example when you want to make changes to the capital or do some company restructuring.
You must realize that this is an illegal practice because as a client, you are not obliged to stick with one agent once a contract is met and fulfilled. After keeping your documents with them, the bad agent will eventually ask you to pay some amount of money in the future when you want to have your documents back.
Although it is not a common practice, unfair business happens everywhere in this world. Again, you learn how important it is to use the service of a reputable and trusted agent.
The laws in any country are so strict if it is about the tax, especially the tax paid by foreign companies that run their business in their territories. In Indonesia, you are obliged to pay taxes upon receiving the Tax Card (NPWP), regardless your company has already had activities or not.
Hire a professional accountant to deal with the reporting and make sure that you report and pay the tax regularly. Otherwise, it will call a suspicion from the tax office. Playing with the bureaucracy is something that you should avoid when making business in a foreign country.
Every country has its own law and system that every business person has to respect. Just because you think that something is not applied in your country, it does not mean that it is not important.
Every detail and information related to the registration process must be met, with no exception. Violating them may be considered an illegal act, and any illegal act will impact your business in the future.
Similar to the explanation above, every country has its distinctive business culture that makes running a business in a foreign country is a unique and special experience. You must learn Indonesian business culture if you want to run your business in Indonesia.
It will help you understand many things that may happen during your business activities in Indonesia. These include many national holidays, long and confusing bureaucracy, difficult and complex registration processes, countless document preparation, and many more.
This is not something that you can master in a night, but when you think that it is worth it to establish a PT PMA in Indonesia, you will think that understanding the local business and working culture is a great asset you need to master.
In the end, you will find it important, especially when you want to expand your business locally and hire more local people to work in your company in the future.
Throughout the years, Cekindo has assisted thousands of companies with foreign company registration in Indonesia. As part of the InCorp group in Singapore, Cekindo has a dedicated team of business incorporation specialists to ensure a hassle-free foreign company registration process in Indonesia.
Talk to us now by completing the form below.