To encourage business growth within Indonesia, the government is actively creating a conducive environment for foreign investors through initiatives that reduce barriers and encourage growth. To date, the company registration process is simple. It is also partly digitized. Besides the first two steps that cannot be processed online, the rest of the process can be done online through the online system known as Online Single Submission (OSS).
Approval of incorporation documents takes about 10 working days, after which you draft your articles of Association and apply for business licenses. The overall incorporation/registration period is between two and three months. And it is worth noting that Indonesia does not allow registration of branch offices.
Options for Fully Foreign-Owned Indonesian Companies
A company is considered a foreign company if there is a foreign investor or shareholder in the company. Such companies must get approval from the board coordinating capital investment before engaging in Indonesia’s business activity. The amount of capital invested in a particular business will define the business company’s size and the eligibility to sponsor foreign employee’s work permits. Indonesia allows total foreign ownership in industries that are not categorized under the Negative Investment List.
If you are a foreign business owner who wants to register your company for full ownership, you have the following options:
Other company types:
Nominee Limited Liability Company
When you want to begin operations immediately, you can register a company in Indonesia using an Indonesian nominee. Registering this type of company enables you to bypass some foreign investment restrictions, close deals fast, and obtain contracts.
This type of company is required to adhere to stringent company registration regulations. It has at least 300 shareholders and a paid-up capital of IDR billion. It is a requirement to be listed under the stock exchange.