What makes your foreign company in Indonesia last? If you see companies like Astra International or Google, you will probably be wondering. Starting a company in Indonesia means following their existing rules and regulations. Once they are fulfilled, then it is not just a matter of running the business. It is also about how to keep the business going.
To make your foreign company last in Indonesia, here are some things that you need to avoid:
Unable to state your business activities clearly.
When you first set your business in Indonesia, the very first question that they will ask is: “What are your business activities going to be like?” To know your business field or industry, you need to check on the list of business classification in Indonesia called KBLI.
Not only that, but you also have to make sure that your business field is not part of Indonesia’s Negative Investment List. The Negative Investment List determines which business sectors that cannot be run by foreigners in Indonesia.
Getting into unsafe nominee arrangements.
This is not the time and place to risk your business this way. Instead of having your nominee arrangements with friends or family as you enter the market, go to a more reliable source like Company Registration. They will help you to make safer, better nominee arrangements.
Having too small capital to start a company.
What makes your foreign company in Indonesia last is when you have enough capital to start it. If your capital is too small (as in, under IDR 2.5 billion), then it will not be enough to start your own PT PMA (a company type that allows involving foreign workers in its operational.)
Using an unprofessional agency to register your company.
In the past, this was proven to have disastrous results. To be on the safe side, it is best that you rely on professionals like Company Registration. Not only it will help you to start your business, but it will also stay safe during its operational because of its guaranteed legality.
Not reporting your taxes and investments correctly – or even worse – falsifying them.
This is as good as committing your business suicide. No matter how much your company earns, nothing should be hidden from the local authority. The key areas of compliance include social security programs (BPJS) and investment reporting. To avoid trouble, you must always report your taxes and investments from the very beginning and as correctly as possible.
Not catching up with the latest rules and regulations regarding foreign companies in Indonesia.
Things can change regarding the political and economic situations in the world. When that happens, policies in a country can also change, including when it comes to having foreign companies in Indonesia.
Although everything seems stable and safe at first, you still need to keep your eyes and ears open. No worries, you can also ask reliable sources like Company Registration to help you with additional information if there are any changes.
By avoiding these six (6) mistakes, you get to keep your foreign company in Indonesia for as long as possible. It is what makes your foreign company in Indonesia last.
