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Directors, including nominee directors, play important roles in Indonesian companies. For this reason, any owner of a company based in Indonesia which requires the employment of one or more directors must therefore exercise great caution when selecting those who are to serve in this important 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 will ensure that if your company in Indonesia requires a nominee director, the person we select will be one who fulfills all of your needs. In this way, you can be certain that your company’s directorial requirements will be handled in a way which you will find acceptable.

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 an agreement which is legally binding, 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 have no need for a nominee director. These include sole proprietorships and partnerships; such is the case because the inherent nature of these business entities prevents them from having a need for a nominee director. 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 will also assist you in increasing your understanding of your current business situation and therefore help you select the business entity which would best fit your situation, business plans, and business objectives.

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