Every company owner in Indonesia must comply with certain legal requirements for the operation of a business there. However, some company owners inadvertently overlook some of the requirements which are needed before the business may be allowed to be run in a legal manner.
The company laws of Indonesia mention the legal requirements which exist in the country as they pertain to businesses in Indonesia and their owners. Any violation of any of these requirements will cause a business owner to be unable to have their business registered and incorporated. Although the Indonesian government and other authorities are generally vigilant with regard to those who either intentionally or unintentionally attempt to bypass these requirements, the fact remains that such breaches of these regulations happen from time to time.
Requirements Related to Appointments of Directors, Shareholders, and Commissioners
Anyone who starts a limited liability company in Indonesia, regardless of whether it is owned by locals (PT) or by foreigners (PT PMA), must adhere to the laws which govern the appointment of directors, shareholders, and commissioners in such a company. Every PT and PT PMA which has been established in Indonesia is required to have a minimum of one director, two shareholders, and one commissioner. In the case of a PT, all of the shareholders of the company must be locals; such is not required of a PT PMA. Should a PT or a PT PMA have multiple directors or multiple commissioners, one of the directors or commissioners is required to serve as the president director or the president commissioner. As these are legal requirements, every company in Indonesia must comply with the information which has been stated. The consequence of not adhering to these important requirements is that the company’s incorporation will not be officially completed; only companies with the appropriate number of directors, shareholders, and commissioners may be incorporated in Indonesia.
It may sometimes be difficult to select people who are deemed suitable to be shareholders, directors, or commissioners of a company based in Indonesia. Fortunately for anyone who faces difficulties related to this matter, we at Paul Hype Page & Co can be of assistance. Among the services we provide are the appointment of a company commissioner, the appointment of a nominee director, and the selection of nominee shareholders. In this way, you will not have to spend time searching for people who are to fill these crucial positions.
