Corporate secretarial firms provide many important services for businesses all over Indonesia. Without the invaluable work of these firms, many businesses in Indonesia would not be able to perform the functions which enable their very survival in the corporate world today.
Indonesia is a country located in Southeast Asia which has an increasingly growing economy. This economic growth present in the country is this reason that many foreign investors consider it a good place in which a business could be set up. The large population of the country also serves as a potential market for the business activities which could be conducted in the country. However, there are corporate secretarial tasks which must be completed by all businesses. For the completion of such tasks, many business owners in Indonesia turn to the services of a corporate secretarial firm.
Definition of a Corporate Secretarial Firm
A corporate secretarial firm is a legal entity which provides corporate secretarial services to businesses or companies. All corporate secretarial firms in Indonesia are to operate according to the corporate laws of the country.
Corporate secretarial firms employ corporate secretaries who work for the companies with which they are affiliated. In Indonesia, a corporate secretary must be able to take legal action whenever necessary, have suitable understanding of Indonesian law and corporate governance, have superior communication skills, reside in Indonesia, and understand the business activities of the company with which the corporate secretary is working.
Why Businesses Need Corporate Secretarial Services
Corporate secretarial services are required by almost all companies in Indonesia. Such services include crucial tasks without which a business would not be able to properly function. Therefore, corporate secretarial services ought to be sought by any business owner in Indonesia for the purposes of maximizing the success of the business. There are many benefits which a business in Indonesia could receive by enlisting the services of corporate secretaries employed by corporate secretarial firms. The services provided by such corporate secretaries allow the related company to receive unbiased decisions because there will be no conflicts of interest involved. They also reduce costs because they do not incur any expenses which would otherwise have been attached to the in-house company secretary. Corporate secretarial firms also ensure that the company with which they are working is compliant with all of the legal requirements specified in the corporate laws of Indonesia.
Information About Corporate Secretaries in Indonesia
A corporate secretary who works with an Indonesian company has several duties and responsibilities. These include provision of assistance to the company’s board of directors and board of commissioners for the purposes of implementation of appropriate corporate governance policies, disclosure of required information to the public, and punctual submission of reports to the OJK.
Corporate secretarial functions may either be performed by someone from within the company or by someone from an external corporate secretarial firm. Corporate secretaries hired from within are to be selected by the company’s board of directors.
The services of corporate secretaries can be enlisted at any time during the setting up of a business. Those whose services are sought during this phase may provide advice regarding the registration process, the opening of a branch office, or the selection of a proper office space. Those who do not use such services during the setup phase may nevertheless do so with regard to the company’s business activities.
Should you be interested in setting up a business of your own in Indonesia, we at Paul Hype Page & Co are able to assist you with easing the process. Our incorporation specialists will see to it that your company in Indonesia is established in the most suitable manner possible. With our assistance, your company will be ready for operation in accordance with the laws of Indonesia.
Selecting a Corporate Secretarial Firm in Indonesia
The choice of a corporate secretarial firm is one that must be approached carefully. This is because the quality of the corporate secretarial services offered may lead to either the success or failure of the company in question.
There are a number of factors that may affect the choice of a corporate firm in Indonesia. One of these is the business entity type of the company which is contemplating enlisting the services of a corporate secretarial firm. Among the business entities which may utilize the services of a corporate secretarial firm are the Penanaman Modal Asing (PMA) and the Perseroan Terbatas (PT). However, it should be noted that a foreign owner of a PT is not allowed to register that business under the owner’s personal name. Therefore, such an owner must pay particularly close attention to the source of the company’s secretarial services. The firm selected must be one that understands all that is involved in setting up a business in Indonesia.
Business owners in Indonesia will also prefer to have complete control over the company’s corporate bank accounts. The corporate secretarial firm selected must therefore be able to provide advice on issues such as corporate bank accounts which exist in a foreign country and how such accounts can be easily managed and controlled.
The duration for which the corporate secretarial firm has been legally registered for its services is also another factor which must not be overlooked. This is because most people tend to trust firms which have been in existence for some time. Such firms are believed to have gained much experience and knowledge over that time period.
The number of clients associated with the corporate firm should also be taken into consideration as an important factor when making a choice for a suitable firm. Firms with few clients may raise questions about the quality of services which are offered by the firm. If a firm has very few clients, the low quality of service or high costs might dissuade business from using its services. Those which have many clients, on the other hand, might only exist to fulfill the legal requirements of the clients whom they support. There may also be questions about how quickly they can act during times of emergency.
Indonesia’s geographical location has caused it to be afflicted by disasters such as earthquakes and tsunamis. Therefore, a suitable corporate secretarial firm in Indonesia ought to have contingency plans for such occurrences.
Costs that will be incurred when enlisting the services of a corporate firm must never be overlooked. Businesses will avoid paying for very cheap or very expensive services because they may believe the very cheap services to be substandard services while the very expensive services are likely to be of excessive cost.
Incidentally, your own business might be struggling with issues related to its finances. This is where we at Paul Hype Page & Co can come in. We will provide you with guidance related to the financial planning of your business. With our help, you will soon see that your business will be in as good as financial position as we could possibly make it.
The reputation of the corporate secretarial firm in question must also be considered. What the former current clients of the firm say about it reveals the truth about the reputation of that particular firm.
The qualifications of the company secretaries employed by the corporate secretarial firm in question must be considered. Those whose qualifications are insufficient are unlikely to receive positive reviews.
Finally, a company will have to look at the secretarial services on offer so as to find out if the services offered are the same as the services being sought.
How to Find a Suitable Corporate Secretarial Firm in Indonesia
To find a suitable corporate secretarial firm in Indonesia, many business owners choose to make use of online services to discover more about the corporate secretarial firms around them. To do so, one must first conduct a search of registered firms. The next step is to narrow the search to a particular firm of interest. After indicating interest, the person who conducted the search will then be supplied with a report via email. The emailed report will contain the name, citizenship, business activities, date of establishment, minister’s decree of company ratification, and registration number. It will also include other contact details. It is also possible to use the services of a lawyer in addition to or instead of using the online method in order to select the firm which will be used. Both methods are convenient, readily accessible, and provide knowledge for the decision-making process.
It can sometimes be difficult to find a suitable corporate secretarial firm in Indonesia. Whether one chooses to use online methods, offline methods, or both to determine which firm provides services fit to be used, the decision to be made is certainly not one which can be made flippantly. The cost of the services of each firm assessed must be taken into consideration before deciding the firm to be selected. After searching, selecting, and verifying so as to determine the most suitable firm to be used, the resulting information can be used for the benefit of the owner’s business. Every business owner will benefit from using the services of a competent and efficient corporate secretarial firm.
Paul Hype Page & Co. will give you more information and assistance on policy updates, compliance regulations and changes to tax conditions. Corporate tax in Indonesia.
Our team of seasoned professional can also help you set up a company in Indonesia very quickly and easily following all legal entities, and offer you sound advice on how to make it successful too.
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Here, you will find detailed information about Indonesia’s Corporate Tax System. Paul Hype Page & Co helps companies with strategic tax planning, tax advisory, and accountancy services.
- Indonesia Tax Planning
- International Tax Planning
DPJ (Directorate General of Taxes) governs Indonesia’s tax system, helps develop a stronger economy, better environment and a more vibrant economy. All companies, regardless of industry, have a legal duty to pay taxes.
Indonesia attracts investments from around the world by reducing its corporate income tax rate and introducing different tax incentives. Indonesia has one of the lowest corporate tax rates in the world.
As your company’s Tax agent, Paul Hype Page & Co Chartered Accountant will be fully responsible for the practice of ensuring that these conditions are met. It is important that we be highly qualified and well versed in local regulations and corporate laws, as we are responsible for the upkeep of important company files, tax reports and tax records.
Finding a Suitable Corporate Secretarial Firm in Indonesia FAQs
Every business in Indonesia must have a corporate bank account. This is because corporate bank account is necessary before the business can begin proper operations. Certain business activities are impossible to be completed without a corporate bank account.
The Indonesia Corporate Secretary Association (ICSA) is the association which oversees corporate secretaries in Indonesia. It was founded in 2008 to improve standards of corporate governance and professionalism among the company’s corporate secretaries. ICSA works with various professional associations in Indonesia in order to achieve this goal.
The average corporate secretary in Indonesia earns around 623.6 million rupiah (US$44,100) every year. However, the more senior corporate secretaries in the country can amass annual earnings of around 790.9 million rupiah (US$55,900) per year.