What’s in this article
Indonesia’s reputation as a suitable location in which one might start a company has increased greatly in recent years. The country’s gross domestic product (GDP) has been growing at a consistent and stable rate. The immense population of the country also ensures that anyone who starts a company there will benefit from the large customer base of the country. The country’s increasing economic prosperity has also caused the purchasing power of most people in Indonesia to increase; therefore, more people are now able to purchase more products than there were in the past. These advantages have caused many people from all over the world to develop an interest in starting a company in Indonesia. However, there are some who while interested in doing so, also approach this idea with trepidation because while they might plan to own and run an Indonesia-based business, they might have no desire to move there themselves.
How a Foreign Business Owner Can Operate an Indonesian Company from Abroad
Fortunately for those who have no intentions of moving to Indonesia, there is a method by which they can own and run a company based in Indonesia without ever having to move there. This may be done through the hiring of nominee commissioners, directors, and shareholders. Such people will manage the company from within Indonesia while the foreign company owner remains in the owner’s home country. This arrangement will not cause the company owner to relinquish ownership of the company. However, foreign company owners who might be considering this option should also be informed that whenever such is deemed necessary, they might be required to visit the company in Indonesia. Doing so will provide evidence that they are not neglecting their duties as the owner of the company.
Regardless of the location from which you plan to run your Indonesia-based company, we at Paul Hype Page & Co are able to assist you with its incorporation. Our incorporation team will see to it that your company in Indonesia will be established in a manner which is in line with all of Indonesia’s company laws. We will also contact any government authorities on your behalf if such is required.
Business Entities Which May Be Established by Foreigners in Indonesia
Every foreigner who establishes a company in Indonesia must be aware of the business entities which they are allowed to establish there as well as the many regulations which surround them. Under ordinary circumstances, the only such entity which may be selected by a foreigner is that of the foreign-owned company (PT PMA). It must be noted, however, that all business activities to be conducted by a PT PMA are subject to the Negative Investment List. The Negative Investment List specifies details which business activities are permitted to be carried out by foreigners in Indonesia as well as those which are not.
Foreigners who already own a company in another country also have the option of setting up a representative office of that company in Indonesia. A representative office is a branch of the foreign parent company which is established in Indonesia; it may not engage in any direct sales or generation of revenue for the parent company. The only activities to be conducted by a representative office are those of preparation for the establishment of a PT PMA, conducting of market research, and carrying out of marketing activities.
Foreigners who start a company in Indonesia might also choose to start a locally-owned company (PT). Ordinarily, a PT must be completely owned by Indonesian locals. However, through the use of local nominee shareholders, directors, or commissioners, a foreigner may bypass this restriction and own a PT in Indonesia.
Should your company be in need of any local nominee directors, commissioners, or shareholders, you can always contact us at Paul Hype Page & Co. We will ensure that any person select to fill any vacant but necessary nominee role in your company will be one who is capable of satisfying all the needs of your business. In this way, you will not have to worry that your business’s output will be compromised in any way.
