Anyone who intends to incorporate a company in Indonesia must complete many details and steps. Some of these steps can be somewhat time-consuming and complex. Therefore, some people who plan to incorporate an Indonesia-based company might be considering their options regarding the possibility of evading certain incorporation steps which they might believe to be unnecessary.
The Incorporation Process in Indonesia
Before the start of the incorporation process in Indonesia, the type of business entity to be used must be selected. Business entities in Indonesia include PT, PT PMA, representative office, joint venture, and sole proprietorship (UD), among others.
Once the business entity has been selected, the process may begin with obtaining valid incorporation documents. A company name must be registered with the Ministry of Law and Human Rights before obtaining incorporation documents. There are also statutory documents to be notarized and Articles of Association to be drafted.
After the statutory documents have been notarized, there are still many steps to be completed; these steps often include the input and approval of government authorities.
These are the paying of the registration fee and obtaining the receipt (to be filed with the Trade Register), the filing of all notarized documents which are to be approved by the Ministry of Law and Human Rights, the application for any necessary business licenses which are to be approved by any relevant ministries or authorities, the registration for employment with the Ministry of Manpower, the registration for social security purposes, the obtaining of a tax identification number (NPWP), and the obtaining of a value-added tax (VAT) number.
A registered address in Indonesia will also be required, as well as a permanent license for business operations.
The full incorporation process in Indonesia takes about 35 working days if all steps are followed.
Why Each Step of the Incorporation Process Is Necessary
Returning to the topic of the process of company incorporation in Indonesia, no step of the process can be skipped because every step is important.
A registered company name is required so that the company can be identified when it conducts any of its business activities. Incorporation documents must be approved as proof that the company has been legally incorporated and is operating within legal boundaries.
Articles of Association must be drafted to provide details on how the company is to be run.
Steps for Incorporating a Company in Indonesia
The Ministry of Law and Human Rights must give their approval so that it is known that the company has official recognition from the government. A registered address is needed so that the company will officially have been established in Indonesia.
All companies in Indonesia must register for tax and VAT numbers as they are required to pay both. Certain business licenses must be obtained by business owners in specific industries for the conducting of certain business activities.
Partner with Us for a Seamless Company Incorporation in Indonesia
A permanent license will ensure that the company has indeed been fully incorporated. Therefore, every step of the incorporation process is backed by an important reason.
Now that you understand why every step of the incorporation process in Indonesia is of utmost importance, you might be interested in starting a company of your own in Indonesia. If such is true, you can always contact us at Paul Hype Page & Co. Our incorporation team will work with you so that your company will be set up properly.
We will see to it that the incorporation of your company is in line with the laws and regulations imposed by the Indonesian government.
