Being the biggest archipelago in the world and with its economy constantly growing, Indonesia is deeming to be one of the best countries to invest in as a foreign entrepreneur. Nevertheless, before commencing on a business venture in a new market, it would be nerve-racking to inject a big sum and jump straight into a country in which you are unfamiliar with. Therefore, it is crucial to have the knowledge about the company formation and business structures in Indonesia.
In this Article, we will guide foreign investors in regards to foreign business setup in Indonesia.
What is an Offshore Company
Offshore companies carry out the same type of business as a locally incorporated company and the liability of its shareholders is generally limited to the amount of capital they have invested into the company, and they both will essentially be a private limited company. However, this will be known as an international business
Basically, an offshore shows that the management and control of the company is not in Indonesia, means that there is no one running the company in Indonesia, yet it still a Indonesia company.
However, the difference that an offshore company identify themselves is with the company’s incorporation by jurisdiction.
What we mean is, a locally incorporated company will go through the usual process of a Indonesia company incorporation. Whilst an offshore business goes through the same process, the only different is the offshore company will be incorporated by a local nominee director.
For foreign companies who is setting up an offshore company in Indonesia, and do not wish to relocate, will also opt for the offshore company incorporation option.
Basically, you can incorporate an offshore company in Indonesia, case in which you will not need any work passes or work visa. However, you will not be able to live in Indonesia for extended periods of time.