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Avoid these Common Mistakes to Establish the Company in Indonesia

In few years, many foreign investors want to invest in Indonesia. To invest the business in this country, foreign investors need to know some laws and regulations of how to establish the company in Indonesia. Because of the unfamiliarity of those regulations, many foreign investors tend to make mistakes when they want to set up the business in Indonesia. Here are these common mistakes of how to establish the company in Indonesia you need to avoid.

Having limited/small capital

Having limited small capital - Avoid these Common Mistakes to Establish the Company in Indonesia
Having limited small capital – Avoid these Common Mistakes to Establish the Company in Indonesia – GhanaTalksBusiness

 

The first common mistake of how to establish the company in Indonesia is having the limited or small capital to invest in Indonesia. You need to know that the minimum paid-up capital for foreign investors to start a company in Indonesia is Rp2,5 billion ($190,000). Having minimum capital is not recommended because, in this amount of capital, you are only able to establish a small company. You are not allowed to join big tenders, hire the foreigners, and to increase the amount of your capital for your company in the future. So, avoid this mistake.

Having unsafe nominee arrangements

Having unsafe nominee arrangements - Avoid these Common Mistakes to Establish the Company in Indonesia
Having unsafe nominee arrangements – Avoid these Common Mistakes to Establish the Company in Indonesia – pixabay

 

Another common mistake of how to establish the company in Indonesia is having unsafe nominee arrangements. Try to avoid the nominees arrangements with friends and family because the arrangements may seem quite risky when you want to enter the market. Try to avoid the unreliable local nominee because the proper documentation of the agreement can be skipped. In the end, you are at fault if you choose the wrong nominee.

 

Having not reported taxes and investments correctly

Having not reported taxes and investments correctly - Avoid these Common Mistakes to Establish the Company in Indonesia
Having not reported taxes and investments correctly – Avoid these Common Mistakes to Establish the Company in Indonesia – pixabay

 

The common mistake that the investors may take for granted is having not reported taxes and investments correctly. If you want to know how to establish the company in Indonesia, you need to pay attention to tax and investment reports. You need to report your taxes on time from the beginning after receiving your tax identification number even though you don’t have any activities in your company.

Having limited preparation time to set up the company in Indonesia

Avoid having limited preparation time is the way of how to establish the company in Indonesia. Unlike in more developed markets, you need to be well-prepared to set up the company in Indonesia. Some documents required and the steps to set up the company in Indonesia may take few months. So, be prepared in advance.

Having no business office

Having no business office - Avoid these Common Mistakes to Establish the Company in Indonesia
Having no business office – Avoid these Common Mistakes to Establish the Company in Indonesia – SmallBusinessTrends

 

Another common mistake of how to establish the company in Indonesia is having no business office in Indonesia. You need to take care of the company registration and get the certificate so that you are able to have a business office. But before that, you need to manage the required documents so that you can follow the procedures to establish a company in Indonesia.

Using untrusted and unprofessional agent service

The common mistake that many foreign investors may face is using the untrusted and unprofessional agent service in setting up the business in Indonesia. You need to find an agent or a company whose the background you can check and has the capability to know how to establish the company in Indonesia. So, choose the trusted agent or company which has more experiences in establishing the business in Indonesia.

Company-Registration Co.ID

If you don’t have any ideas with the regulations of how to establish the company in Indonesia, you can use the service from trusted and more than 17 years of experience in helping the foreign investors to set up the business in Indonesia. Company-Registration Co.ID offers you the service of setting up the company from the beginning until you can operate your company in Indonesia. What are you waiting for? Visit the official website of Company-Registration Co.ID

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