For the last two decades, the number of foreign direct investment in South-east Asia has been rapidly growing. Foreign direct investment can be defined as an investment activity of a foreign investor to conduct business in Indonesia. The investor could be any foreign companies, foreign government agencies, or foreigner who intend to open any business in Indonesia’s areas.
Considering many opportunities to invest in Indonesia, it would not be surprised if the number of foreign investors has been accelerated in recent years. In fact, the growth rate of the foreign investor has touched the highest record in Indonesia’s market in 2018.
If your company is interested in opening new business opportunity in Indonesia, there are some things to understand regarding the registration process of the foreign company in this country. Here are the key points:
Completing All Necessary Documents
To establish a foreign company in Indonesia, you need to complete several documents that can be acquired from various authorized parties. Those documents are the certificate of company registration, domicile certification letter, the organizational structure of the company, principal permit, notary deed, validation letter from The Ministry of Law and Human Right, The Ministry of Commerce, and the tax office.
If the company is established under the name of an individual/individuals, the founders are obligated to include the copy of their identity cards.
Obtaining Business Permit
The business permit can be acquired through Badan Nasional Penanaman Modal (BPKM). The permit will legalize your company status to operate in Indonesia. To ease the foreign companies in investing, BPKM has developed online registration service. However, the process to obtain the permit is not very quick. You must wait up to 14 days to complete the business permit registration.
Doing Taxes
The taxes are an important matter to handle, the tax regulation in Indonesia oblige the foreign companies to pay off their tax liabilities just like the locals. Therefore, the company must do, pay, and report the taxes by itself. However, at certain times the authorities will audit the corporate tax payment. So, make sure that you have fulfilled your obligation following the law.
Utilizing Third Party Service
Because of the length of time required to complete all the registration process, the foreign company often utilize the services from third parties to ease the process without breaking any sweat. The services include providing legal consultation, preparing the necessary documents, and handling the business license application. Using the services can prevent your company from any unnecessary registration errors which can lead to the failure of the registration process.
From those key points, utilizing third party service is the most efficient way to complete your company’s registration in Indonesia. If your company is interested in establishing the potential investment in Indonesia, you can use the service of www.company-registration.co.id to ease and speed up the registration process.
www.company-registration.co.id has no less than 15 years of experience in setting up foreign companies in Indonesia. Our professional service will ensure to complete your registration process as quick as possible without any trouble.
