Shelf Company in Indonesia: Why It May Be Better Than a New Company

Most entrepreneurs establish a brand-new legal entity when starting a business in Indonesia. While the process may not be as challenging as it seems, foreign investors often face specific issues, particularly in obtaining the right permits and licenses. An alternative solution is buying a shelf company, which provides a simplified way for foreigners to begin operating in Indonesia.

Now, let us share some insights with you by covering the basics of why a shelf company may be a better choice than a new company so that you can make a wiser decision.

What is a Shelf Company?

A shelf company, or an aged company as some know it, is a ready-made company already formed but not in use. It can be a newly established entity with clean records or an entity that has been incorporated for some time and left to age on purpose. This type of company is ready for purchase by a new owner.

For foreigners doing business in Indonesia, a shelf company is a better option because changing ownership is the only major process they have to deal with, which is more convenient than setting up a local PT.

How Can a Shelf Company Help When Conducting Business in Indonesia?

There are many reasons foreigners or even locals purchase shelf companies in Indonesia. One is because this company offers the following advantages that will catapult your entrepreneurial success.

Instant Access

With the instant option to change the business’s name, shareholders, and directors immediately, you will have instant access to government and private contracts.

Faster Market Entry

Due to regulatory steps, setting up a new company in Indonesia can take several weeks. However, investors can bypass much of the setup time by purchasing an Indonesian shelf company and begin operations immediately.

Enhanced Credibility and Reputation

The appearance of company history and instant credibility are also the benefits that a shelf company that has aged for some time can offer. The credibility of a shelf company will attract more potential investors. In addition, some companies might need your company to be in business for a certain minimum length of time before they would become your business partners.

Forging Quick Relationships with Financial Institutions

As the new owner of a shelf company, your company can almost immediately open a bank account and forge necessary banking relationships with banks in Indonesia for business lines of credit and future loans.

Flexible Ownership Structuring

Shelf companies can often be restructured post-acquisition to accommodate foreign ownership, making them a practical starting point for entering the Indonesian market while remaining compliant with investment laws.

Is It Legal to Put Up a Shelf Company?

Acquiring shelf companies is a common practice among businesses in Indonesia. Reputable Indonesian citizens legally establish these entities in compliance with Indonesian Company Law. However, thorough financial and legal due diligence is essential before purchasing, as many sellers may not provide complete transparency. A reliable partner ensures the shelf company has a clean record and is free from liabilities such as debts or lawsuits. This guarantees you’re buying only the entity without any hidden complications.

Who Sets Up a Shelf Company?

Indonesian shelf companies are often created to be sold to foreign investors. Since local banks tend to have more confidence in companies with an established presence, they are typically hesitant to work with newly formed businesses owned by foreigners. As a result, foreigners looking to establish a foreign-owned enterprise often face complex regulatory hurdles. Purchasing this type of company, previously registered by Indonesian citizens, offers a more straightforward alternative.

Simplify Your Entry into Indonesia with InCorp

Choosing a shelf company in Indonesia offers clear advantages—speed, credibility, and a smoother entry into the market. A shelf company can be a powerful shortcut for entrepreneurs and investors who want to skip the long waiting times and start operations immediately.

However, success still depends on navigating licensing, regulatory compliance, and local setup requirements—and that’s where expert support like InCorp Indonesia (an Ascentium Company) becomes essential. InCorp can assist you with:

• Company Registration: Gain immediate access to shelf companies or register a new business with expert assistance.
• Business License: InCorp ensures you’re fully compliant and operational, from business permits to sector-specific licenses.
• Local Experts with Tailored Solutions: Whether you’re in manufacturing, services, or import/export, InCorp customizes setup strategies that suit your goals.

Fill out the form below to take the first step toward launching your business in Indonesia.