Indonesia, a developed country, continues to grow the infrastructure, facilities, and amenities in every sector. It aims to attract investors to take part in this development. Fortunately, it is not only foreign investors coming to set up the company but also the domestic entrepreneur as well. Likewise, the procedures to establish a company in Indonesia are valid for all investors.
Kinds of Local Company
- Limited Liability Company (LLC)
Commonly known as Perseroan Terbatas or PT, LLC is an average type of company in Indonesia. Generally, PT consists of a director, shareholders, and a commissioner. The share capital divided among the stakeholders based on the size of the company. There are several categories which are:
- Micro company = maximum capital IDR 50 million, not including land and building.
- Small company = the capital of the company ranges from IDR 50 million to 500 million
- Medium company = the capital is started from IDR 500 million to 10 billion
- Large company = the capital is more than IDR 10 billion
For a company which wants to employ a foreign worker, it has to be at least in a medium-size company.
Moreover, there are some types of LLC in Indonesia. First, an open LLC, this kind of company is publicly open to the others while at the same time can buy stock from other companies. Second, a closed LLC which only shares to the private border that commonly only for family. Next type is a domestic LLC that can be found around Indonesia which offers services and goods. Domestic LLC have to obey the rule of the Indonesian government. Then, there is an individual LLC which only owned by an individual.
The other types of LLC are foreign and general public. The difference between those are foreign LLC can share the investment with a foreigner, but the regulations stick to Indonesia while for the general public is closely similar to open LLC.
Steps to Setting Up Domestic Company
- Ask for PT name to Ministry of Law and Human Rights
- Deed of establishment PT and association article
Based on the article 7 of Law No. 40/2007 on Limited Liability Company, the deed of the establishment should be written in Indonesian. Also, it has to be completed by the necessary information of founders’ identity including places and date of birth, occupation, nationality and even residence if it is applied individually, and will be different for a company-based. Furthermore, the member of the company should be attached inside as well as the identity of the company investor.
- Certificate of company domicile
- Tax identification number
To get this number or named as NPWP, applicants need to go to the tax office of the residence. The requirement documents such as application form, a copy of passport or identification card, and a copy of the business permit.
All in all, even though LLC is located in Indonesia, owned by local individual or communities, it does not mean that has no regulation to obey. The procedures to establish a company in Indonesia depend on the type of the company itself because different sector may experience dissimilar documents to be completed.
If you are confused about what kind of PT Company to be run, using a professional company to handle all those things is the best solution. Company-registration.co.id is a trusted place to accomplish your process of company regulation.