Shelf Company in Indonesia: Why It May be Better than A New Company

When starting a new business in Indonesia, the most common and popular option is to set up an entirely new entity. Although setting a new entity in Indonesia is not as difficult as you imagine, there will definitely be times you face certain issues as foreigners, especially when it comes to the right permits and licenses. But, there is another option like a shelf company.

A shelf company in Indonesia feels like the right solution for some foreigners to do business in the country. Foreigners with needs and goals to set up a company with a more simplified process in Indonesia may find that the ultimate answer is a readily available shelf company.

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 known by some, is a ready-made company that is 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. A shelf company is ready for purchase by a new owner.

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

Advantages of a Shelf Company

There are many reasons foreigners or even locals purchase shelf companies in Indonesia, one of them is because a shelf company offers the following advantages that will catapult your entrepreneurial success.

Instant Access

With the instant option to change the name of the business, shareholders, and directors right away, you will have instant access to both government and private contracts.

Instant Credibility and Reputation

The appearance of company history and instant credibility are also the benefits that a shelf company that has aged for a period of 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 Relationship with Financial Institutions

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

How to Buy a Shelf Company in Indonesia

A public notary will sign and notarize the contract and then the ownership of the shelf company will be transferred to you.

The whole process generally takes less than a week, and you will also be provided with the following details of your company:

• The company name, office address, and phone number
• The company’s incorporation number
• The company tax identification number
• All company registration documents
• All Special Purpose Agreements
• A company bank account number with internet banking (upon request)

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