Recognized as the fourth most populated country in the world, Indonesia serves as a vast market. Regardless of your type of business from food to machine, this nation goes with a promising prospect that exceeds the global investors’ expectation. Arguably, there is an abundance of potential that this Asian archipelago has to offer. It is loaded with the large scale of young population, inexpensive labor, and not to mention the limitless natural resources.
As a foreigner, you must acknowledge that your future business entity appears as a foreign-owned limited liability company (the locals often call it PT PMA or Perseroan Terbatas Penanaman Modal Asing. You don’t need to get worried as your investment and business activity is protected by the Law no.40 year 2007. If you come with a full decision, it is time to take into consideration these following things regarding how to set up a company in Indonesia.
A Set of Determining Factors You Can’t Leave out
Before your business plan is eventually found to be fruitful soon, you need to consider the primary deliberation that includes sort of business and industry you are going expand. It is visibly vital that you understand the lucrative local market and the trend happening in the country. Find out how great your business entity and its strength that impacts the people’s daily life.
In addition to that, you have to think about the nationality of the headquarters as well as the agreement of trade that has already existed. The location should be another point you can’t miss out on. The strategic one will bring you a better chance for the advancement and progress of your business. However, each region and city in Indonesia goes with their regulations and rules so that understanding them is overly important.
An Array of Requirements to Set up your Business in Indonesia
To establish your PT PMA, there is nothing you can’t perform other than letting it officially registered and went through the process of incorporation. The early step includes spending an amount of rate at the bank to gain the clearance of name of the company, having the notary provide the company deed’s form and necessary documents. Afterward, let the company deed of establishment approved by Indonesia’s Ministry of Law and Human Rights. It doesn’t stop there; you have to go on the further steps like applying for the business license and health insurance.
Avoid the General Mistakes!
Knowing the common mistakes, the better anticipation has become a standard you can’t disparage. The first error commonly experienced by the foreigners is the individual’s ignorance toward the negative investment list. You need to remember that the foreigners have no chance to own all the business classifications. The second one is a bit alarming as it involves the unprofessional agents. They are notorious for their deceptive act harming many parties.
In short, consider thoughtfully and mind the aspects concerning how to set up a company in Indonesia from factors that lead to your success to unfamiliar errors. For more information, simply check www.company-registration.co.id out.
