Reducing Cost of Starting a Company by Prospective Company Owner

When anyone who plans to start a company anywhere in the world does so, certain costs will be incurred for any of various reasons. Rental costs for the premises to be used will need to be paid, as will utility costs after the business owner moves into those premises. Fees connected to company incorporation, registration for licenses, and other matters related to compliance issues as legally stipulated must be paid in order to avoid falling afoul of the law. Salaries must be paid to employees, while those who seek assistance for corporate secretarial duties must also pay those to whom such duties have been outsourced. Nevertheless, company owners in Indonesia do have certain methods to reduce the cost of starting a company there.


How to Reduce Rental Costs in Indonesia 

One of the most important costs incurred by business owners is that of rental. Just as is the case in other countries, certain areas of Indonesia are home to higher rental costs than others. For this reason, many companies operating in Indonesia today tend to set up their business operations base in areas which would cause lower rental costs to be imposed. For example, in past years, many companies in Indonesia were based in the Central Business District (CBD) of the capital city of Jakarta. However, in recent times, rental costs in the CBD have soared. Therefore, this rise in rental costs drove many businesses out of the CBD; they ended up relocating to cities and towns close to Jakarta or to areas of Jakarta in which they would incur lower rental costs. Doing so has allowed many a business owner to save much money. 


Outsourcing of Corporate Secretarial Tasks 

Every business in Indonesia requires corporate secretarial tasks to be performed. However, such tasks can sometimes be relatively expensive, especially if the company does not choose a person or firm which demands a payment amount that is excessive relative to the tasks which are to be performed. It is also often advisable for business owners to outsource the carrying out of corporate secretarial tasks instead of having them performed by an in-house company secretary. Doing so often allows business owners to save both time and money, thus giving them more opportunities to concentrate on the company’s business activities and thus maximize the profits of the company. 

As an aside, we at Paul Hype Page & Co are able to supply your company with the appropriate corporate secretarial services. We will select a capable person who will serve as your company secretary. Through this person’s actions, you can be assured that all of your corporate secretarial needs will be managed in a proper manner. 


Corporate Tax Incentives 

Certain Indonesian business owners may use specific corporate tax incentives to save tax money and reduce their overall level of expenditure. Business owners which have opted to invest in or expand into industries which are deemed to be either labor-intensive or pioneer industries are eligible for a reduction of up to 60% of their total investments which are tangible fixed assets. There are also tax incentives of up to 200% of all total costs incurred which are granted to business owners who start apprenticeship programs and training activities. Business owners who conduct certain research and development activities, meanwhile, are eligible for tax reductions of up to 300% of all costs incurred. 


Costs Which Cannot Be Reduced

Of course, certain costs incurred during the incorporation process must be paid as they are and therefore cannot be reduced. These  include  the  fees  related  to  registrations  for  licenses,  permits,  and  other  legal  forms  of  verification;  any  costs  related  to  incorporation;  salaries  to  be  paid  to  employees  as  per  the  terms  of  their  contract;  and  all  other  payments  to  be  made  which  have  a  fixed  price.



Paul Hype Page & Co – OSS service provider and Asean Chartered Accountant.

Paul Hype Page & Co. have 3 physical offices in Singapore, Malaysia and Indonesia

Our Firm Goal is to assist Foreigner and Foreign Companies to set up business in Asean.


How we can help you:


We will call you back, please click below link and make appointment with our Sales consultant:


Step 1- Listen to your Business plan and Relocation needs.

Step 2- Analysis your Tax Planning

Step 3- Recommend the most suited type of Company Incorporation, Open Bank account and Work Visa

Step 4- Arrange for your Spouse and Children Visa

Step 5- Assist as your company to hire staffs and handle all HR matters

Step 6- Every financial year end, we assist you with your yearly OSS Finanical and Tax Complianc

Step 7- Assist you to expand business to Malaysia, Indonesia, Vietnam and Thailand.


Get in Touch with Us Today.

Paul Hype Page