When you’re just starting incorporating a company in Indonesia, obviously you need to gain a lot of knowledge and skills. You can learn from attending a formal school, studying short courses online or face-to-face if you prefer, and by simply reading articles just like this one you’re going through right now. What exactly are things you need to do when you’re already about to build your business? We give you the 5 Important Tips for Incorporating a Company in Indonesia.
These are the important things you have to remember while Incorporating a Company in Indonesia:
- Research whether your intended business is available in Indonesia. Indonesia is a big country with a large population. It offers business opportunities in different sectors so you might be overwhelmed as to what to choose. Try to narrow your choices to three, and then, research if those are available in the country. If your first choice isn’t available for you because you’re a foreigner, then, proceed with your second or third choice.
Businesses in Indonesia are classified and grouped together. This classification is called Klasifikasi Baku Lapangan Usaha Indonesia or KBLI for short. All the businesses are listed here.
However, not all businesses are available for foreigners. If you want to increase your chances to do business in Indonesia, the list that you must take a look at is the Negative Investment List of Indonesia.
- Prepare a Company Name in advance. Just like narrowing as to what business sector you want to engage in, you also need to narrow down to 3 of your choices for a business name. If upon registration, your first choice is already registered, then, you go with your second or third choice.
Furthermore, the name of your business must be consisting of three words, not similar to another company, and not consisting of a word that is vulgar or obscene in nature.
Don’t worry much about the three words for your company name as you can separately register a brand name eventually.
- Make sure you have enough capital. It makes sense that one of the important tips in Incorporating a Company in Indonesia is having a reasonable amount of money. Even if you just want to rent a small office with a few pieces of furniture, you still would require a certain amount of money.
On top of this, the Government of Indonesia is requiring foreigners who want to do business in the country to have a capital of at least 10 Billion IDR, where 25% of this should be coming from the shareholders.
- Get your business address ready. Part of the incorporation process is the declaration of your address. This is where your mail from business authorities will be sent to you. If you haven’t found a place yet to rent, you can make use of a virtual address provided by incorporation companies.
- Stay in Indonesia for at least two months. Before your business gets ready, it’s gonna take some time. Try to stay at least two months in Indonesia, especially when you’re a foreigner. This will give you the time to work on those incorporating papers which you can get from different agencies of government in Indonesia.
Do you need an Incorporation Company in Indonesia?
If you need help when incorporating a Company in Indonesia, you can contact 3E Accounting. They can help you on how to Register Company Online and offer you a quality setup for your company.