As a country with around 260 million people and has the fourth biggest middle-class society, Indonesia is an excellent place to open some business. Moreover, the Indonesian people love to try new foreign cultures and things. In the past time, you may find a hard time in facing the bureaucracy when opening a business in Indonesia. But, thanks to the development of the technology and the works of Corruption Eradication Commission (KPK), it is easier to register the business in Indonesia openly.
However, you are not allowed to be careless and make too many mistakes when setting up PT company in Indonesia. The mistakes can give you big lost. Thus, here are some common problems to avoid before you set up PT company in Indonesia:
Providing too small capital
To setting up PT PMA (foreign-owned company), you need the minimum paid-up capital of IDR 2.5 billion. But, never provide the capital at the smallest amount, because once you set up the paid-up capital in the smallest amount, it is difficult to join big tender or to hire foreigners. And if you want to add the capital later, it will be much more difficult for you.
Doesn’t search enough information
It is true that setting-up PT company in Indonesia is getting easier year by year. However, it doesn’t mean that you oversimplify it. Besides knowing about the way The Investment Coordinating Board (BKPM) in Indonesia work, you must know the steps of setting up the PT company in Indonesia and how long it takes to finish all of them.
Knowing only less information will lead you to significant losses and maybe, you can never set up your PT company in Indonesia. If you don’t want to do mistake in this point, you can hire the agent that can help you to overcome this problem and to assist you in looking for information and to register your company
Choose the wrong agent
Choosing the agent that provides you the service of company registration is somewhat tricky. If you don’t pay attention to this, in the future, the agent can fool you, or bring you the significant loss. So, before choosing the agent, make sure that they fulfill all the requirements as the professional registration agent.
First, make sure the agent now about the BKPM regulations very well. Second, the agent must have the local entity and have experienced in registering the foreign companies. And the last, make sure that the agent doesn’t mind if you use the power of attorneys
Hesitate about your business identity
It is good if you have the significant amount of capital and enough helps from your agent. But, those mean nothing if you don’t really know what to do in this business and is it prohibited or not. Therefore, always check for the Negative Investment List from BKPM, and make sure that your business is not prohibited. After that, think about what you really want to do in this business and your market.
Doesn’t report you to tax on time
Lately, Indonesia is very strict regarding the tax. So, after you get your tax-cart, make sure you always report your tax punctually. Some foreign investors don’t report their tax on time because they think that there haven’t been many activities on the company. Surely that is a big mistake that can make you lost your permit to open the company in this country.
Those are the common mistakes that you must prevent once you set up PT company in Indonesia. Those mistakes are not hard to avoid, but, you must always be careful.