Foreign Company Ownership by an Indonesian Company Owner

There is no law which states that an Indonesian company owner may not simultaneously own a company based abroad. Of course, such company owners must be aware of the foreign country’s rules and regulations regarding the setup of the company abroad. They must also note the market trends of the other country so that there is no adaptability problem when they start their company in the other country. They must also abide by the laws of Indonesia regarding the setup of a foreign company by an individual. Doing so will increase economic viability of the business and possibly also help Indonesians attract foreign investments to their own country.

A foreign company owned by a person who lives in Indonesia might also be used as a representative office. A representative office allows a business to advertise its brand among the citizens of Indonesia. A representative office can also carry out market research regarding potential consumers in Indonesia.

There are many advantages to possessing a foreign company and an Indonesian company at the same time. One benefit available to owners is an increased knowledge of marketing strategies. The company owner can learn more about the marketing strategies that can be applied in both the markets as well as the customer requirements in two distinct markets, then customize the company’s products and services accordingly. Doing so will improves the company’s business prospects in both countries. This is because the strategies learned applied will help in attracting more revenue while also increasing the size of the consumer base. In this way, people from different countries may recognize the company and its products and services. If they are satisfied with the company’s products and services, the company will grow and increase its level of revenue.

The ownership of companies in multiple different locations can increase the scope of one’s business network through interactions with new clients, employees, and partners. Furthermore, if any problems arise in one company, the other company’s network and contacts can prove to be of assistance. The synergization of contacts and strategies in both the companies also help the company owner to make significant profits. With proper planning, the owner can earn a significant return on investment while also saving much time, thus allowing the company owner to place more emphasis on the company’s core businesses activities.

Although there are benefits which Indonesian company owners who also own a company in another country recieve, they must abide by every rule and regulation in force in both the countries. For example, the owner of an Indonesian company who also owns a company abroad must pay taxes accordingly for both companies. Doing so will prevent legal issues from occurring and also allow the companies in question to function seamlessly in the Indonesian as well as the foreign market. By conforming to proper ethical and moral values, company owners can enhance their companies’ reputations in different markets.

Another factor that gives encouragement to Indonesian company owners is the government’s regulations. The Indonesian Investment Coordinating Board (BKPM) has also provided many advantages to PT PMA companies as well as Indonesian companies with foreign investments and connections. The availability of the Limited Stay Visa has allowed company owners to work with their partners and employees from abroad in their Indonesian company or provide training from another country to staff members. Such interactions between the employees and executives of the two companies will also promote cooperation and progress towards the company’s growth.

Those who are not familiar with specific laws and regulations regarding the setup of a company in Indonesia may make use of the advice provided by Paul Hype Page & Co. Regardless of whether your company is a PT, a PT PMA, or any other type of company, we will ensure that its setup is in compliance with the business laws of Indonesia. Although the setup of a company in Indonesia can be a complex process, we will take you through every step until its completion.