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PT and PMA Companies in Indonesia

The business environment of any country is greatly affected by the type of companies which exist in the country. Every business entity will have its own impact on and contributions to the country’s economy. Such is the case in Indonesia, where prospective business owners can start any company of any sort as long as they have fulfilled […]

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Dissolving a Company in Indonesia

Companies in Indonesia  Indonesia is located in the Asia–Pacific region, one of the world’s best regions in which to start a new business. Starting and operating a business in Indonesia is becoming simpler and more accessible to the general public all the time. According to a report published by the World Bank, Indonesia is above average in ease of starting and doing business (Doing Business Report, World […]

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Dormant Companies in Indonesia

There are many dormant companies currently existing in Indonesia. A dormant company does not carry out any business activities; neither does it have a record of transactions in its financial books from some specific period. Several other business experts claim that a dormant company in Indonesia is stated to be inactive with regard to the taxation laws by the tax authorities. According to the information stated in Article 146 of Law Number 40 in 2007 about limited liability companies (PT PMA), dormant companies in Indonesia are the companies […]

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Directors’ Duties in Indonesia

Eligibility Criteria for a Director in Indonesia Every private limited liability company in Indonesia requires one or more directors. Companies based in Indonesia are legally allowed to have as many directors as they desire. The company’s director is to be appointed by through a General Meeting of the Shareholders. To be the director of any company in Indonesia, a personal domicile letter should be received from the relevant authorities. This letter can be received from a […]

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Angel Investors in Indonesia

Angel Investors  Angel investors are wealthy individuals who can provide financial support for the establishment of new businesses and startups. Angel investors frequently take an ownership stake in a particular startup. Angel investors will make a significant monetary contribution to help a startup begin business operations. The amount that these investors contribute will vary depending on the startup’s needs and the industry to which the startup belongs. In several cases, angel investors are the investors of choice of startups that fail to meet […]

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Setting up a Sole Proprietorship in Indonesia

What is a UD and how is it officially defined? Before discussing the Usaha Dagang (UD), the topic of sole proprietorships must be discussed. The sole proprietorship is a type of enterprise in which one person runs the business personally and there is no legal distinction between owner and business entity. A UD is equivalent […]

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Venture Capital in Indonesia

Small and upcoming businesses with the potential to grow usually lack funds to jump start their operations and might not easily get access to banks for the same. Hence, there is a need for external non-bank financing. The financial aids that investors offer to startup companies and firms are known as venture capital. Often, the venture capital firms which provide such funding believe that the […]

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Indonesia Employment Laws

Employment Laws Employment laws are a set of laws that deal with the rights of employees and the responsibilities of employers. They cover a wide range of issues from pension plans and retirement to occupational safety to discrimination in the workplace. They govern the employer-employee relationship and employees’ rights and obligations. Employment laws are a […]

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Indonesian Business Law

Often regarded as the world’s biggest archipelago, Indonesia encompasses 17,500 islands and has become one of the world’s emerging markets. Being one of the largest economies in Southeast Asia, Indonesia is seen as a young democratic country owing to its political stability which was progressively maintained since emerging from decades of autocratic rule. This economic growth and urbanisation have […]

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Does Indonesia’s company Law apply differently to foreigner?

Indonesian company law makes a clear differences between a locally-owned companies (PT) and foreign-owned companies (PT PMA). There is also a negative investment list, or also known as Daftar Negatif Investasi (DNI).   This list regulates the specific sectors that are open and closed to foreign investment. The DNI also regulates the specific proportion of equity that a foreign investor may have in a specific line of business.  Indonesia has been going through bureaucratic reforms […]

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