Building a new company or business in every kind of chance is probably not an easy job to do. We usually taking news or having heard an issue like that. But, it does not have to be like this, especially if we track it into further. Firstly, we need to clear and know for sure what kind of company or business we would like to have. By knowing that in an advance, we saving our time in order searching for the qualifications or regulations regarding the issue that we dream for a long time.
This is also happen to foreigner who wants to have and build a company in Indonesia, that usually be done by foreign investment or penanaman modal asing (PT PMA). According to the law No.25 year 2007 about foreign investment, foreign investment can be done until 100 percent by foreign capital.
This foreign investor may be a foreign citizen, a foreign company or a foreign government investment. Obviously, these foreign investors should be subject to the rules applicable in Indonesia if you want to establish a company here. One of them is the company must be a limited liability company. In Indonesia itself, the establishment of the company is regulated in Law No.40 of 2007.
Make sure also you already know field of business and business activities that will be done because there are certain areas of the industry are restricted to foreign investors. Or commonly known as a negative list of investments. This will make it easier for you to handle legal documents that are not as complicated as imagined when all requirements are met.
It should be noted, in Indonesia, PT PMA must have a minimum capital of Rp 10 billion or equivalent to about USD 1.2 million. This applies to all business sectors, and the minimum investment amount is excluding the value of land and building owned by the company. The Company is required to deposit a minimum of 25 percent of the investment or Rp.2.500.000.000 (two and a half billion Indonesian Rupiah).
How is it? Not as complicated as you imagine, right?
SMART Legal Consulting is an Indonesian Legal Process Outsourcing provider. SMART has assisted Clients in establishing Foreign Direct Company and Representative Office more than 250 entities with 100% success rate. We also assisted local and multinational companies in handling their corporate legal matters, including providing legal retainer services for day to day business operations.
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