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.