What’s in this article
Directors, including nominee directors, play important roles in Indonesian companies. Indonesian company owners must exercise caution when selecting directors for this crucial position. Those who select people who are unsuitable to be the director of a company based in Indonesia will often cause their company to suffer greatly due to the inadequacies of those in the position.
However, a company which has selected the most suitable people for the position will receive many benefits because these directors will perform their duties in a way which will bring many benefits to the company. Some companies in Indonesia use the services of nominee directors instead of ordinary directors.
Definition of Nominee Directors
A nominee director is a person who serves as the director of a company but does so in a passive manner. This means that the nominee director does not have any direct involvement in the management of the company. A nominee director is also barred from being named as a signatory for the company’s bank account. Nominee directors in Indonesia can be hired through the use of a nominee director service.
On that note, one of the services which we at Paul Hype Page & Co. provide is that of the selection of nominee directors for companies based in Indonesia. We’ll ensure your Indonesian company’s nominee director meets all your needs, handling your directorial requirements satisfactorily.
Nominee Director Requirements in Indonesia
Certain business types in Indonesia are required to have nominee directors in specific situations. Such business entities include the foreign-owned company (PT PMA) and the locally-owned company (PT). In most cases, PT PMAs and PTs alike are required to have at least one local company director who is to be directly responsible for the management of the company. This local director is also tasked with representing the company in the public arena. However, it may sometimes be the case that a person who is suited for the position is unable to be hired. In such instances, a nominee director is the person who must fill the position. As long as the nominee director is from a reputable and trustworthy source and is subject to the terms of a legally binding agreement, the nominee director can be expected to be someone who will perform all of the necessary duties accordingly.
Business Entities in Indonesia Which Do Not Require Nominee Directors
There are, however, certain business entities in Indonesia which do not need a nominee director. Sole proprietorships and partnerships don’t need nominee directors due to the inherent nature of these business entities. The business activities of these entities are overseen by the sole proprietor and partners respectively. Not all PTs and PT PMAs require a nominee director, either. This is because PTs and PT PMAs which have already hired a local director have fulfilled the legal requirement which states that such a person must be hired by every PT and PT PMA based in Indonesia.
As there are many business entities in Indonesia from which one may select, you might be unsure about which is the most suitable for your present business needs. If you would like to find out more about this matter, you may contact us at Paul Hype Page & Co. We will provide you with various business solutions which will benefit the company which you will soon be running. We help you understand your business situation to choose the best-fitting entity for your plans and objectives.
