Certain company owners from abroad have considered adding an Indonesia-based company to their portfolio. However, before they do so, they must be certain of the laws in Indonesia which are related to company ownership by someone who already owns a company in another country.
Every business owner must be aware of changing market trends around the world and adapt to them in such a way that will best suit the target market. For this reason, some business owners choose to start different businesses in multiple countries. Doing so will allow them to gain a market presence in multiple markets and multiple business sectors. However, when a business owner chooses to do so, the business owner must be aware of the laws which govern company ownership in each of the countries involved. Such is also true of a person who intends to own a business in Indonesia while already owning another one in another country at the same time.
Legal Status of Business Ownership Abroad in Indonesia
Indonesia’s current business laws do not state any information or restrictions with regard to the ownership of businesses in other countries. Although they do contain information with regard to the expansion of a foreign-based business to Indonesia, there do not appear to be any restrictions which surround one who owns a business abroad and in Indonesia at the same time. Therefore, it can be reasonably concluded that it is indeed possible for a business owner in Indonesia to own a foreign company at the same time.
Ownership of a Representative Office
Those who already own a foreign company before starting a business in Indonesia also find themselves in a unique position. Such business owners, in addition to the usual option of starting a foreign-owned company (PT PMA) in Indonesia, may also choose to start a representative office. Representative offices are connected to a specific foreign company; for this reason, the privilege of opening one in Indonesia is confined to existing foreign business owners. Representative offices are not allowed to conduct any business activities in Indonesia. The primary purposes of a representative office are typically those of market research as well as establishment of the foreign company’s presence in Indonesia. Many company owners who own representative offices in Indonesia also use them to advertise their products to the Indonesian public, network with potential business partners and investors, and gain a better understanding of the desires and expectations of potential customers in Indonesia whether they be locals or foreigners who live in Indonesia. For these reasons as well as several others, those who already own a company abroad but are interested in doing so in Indonesia should consider starting a representative office there.
Should you be interested in starting a representative office in Indonesia, we at Paul Hype Page & Co are able to be of assistance in this matter. Our incorporation team will take you through the incorporation process until your new Indonesia-based representative office is completely established. We will also contact any necessary authorities on your behalf if such is to be required prior to the establishment of your representative office.
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Advantages of Simultaneous Company Ownership Abroad and in Indonesia
There are several advantages which may be enjoyed by someone who owns separate companies abroad and in Indonesia at the same time. Ownership of multiple companies will allow the company owner to learn about marketing strategies which work well in one country’s market and subsequently tailor them to suit the target market in the other country. Doing so would lead to a greater level of revenue to be received because such strategies, if successful, would increase the company’s customer base.
Ownership of companies in multiple locations also makes networking an easier task. Each company will have its own network of clients, suppliers, staff members, and other important figures. It might sometimes be the case that some of the people involved in one company’s network may have ties to people who can make significant contributions to the other company. When such is the case, much time which would otherwise have been spent on searching for personal connections could be saved. This in turn allows the business owner to spend more time and effort on increasing the overall profits of all the businesses owned.