Our company formation specialists in Indonesia can help you set up your business here quickly.
| Quick Facts | |
|---|---|
| Types of companies | Local Limited Liability Company, Foreign Owned Limited Liability Company Representative Office & Branch Office |
| Estimated company setup time in Indonesia | One week |
| Mandatory presence in Indonesia during incorporation | Not required |
| Local director required | Yes |
| Power of attorney required | Mandatory |
| Special approvals from Indonesian authorities required for company formation | Yes |
| Corporate setup cost | $2,100 one-time fee |
| Corporate bank account setup cost | $255, per account, one-time fee |
| Nominee director available | Upon request |
| Nominee director cost | $255 per month |
| Monthly accounting and tax report costs for the company | $26 |
| Annual compliance report costs | $85 |
| Virtual office use | Upon request |
| Virtual office cost | $185 per year |
| Tax planning services | Upon request |
What types of companies can I open in Indonesia?
There are a few business forms a company can take in Indonesia, however, the most employed one is the limited liability company, which can also be fully foreign-owned.
What are the main requirements for foreign investors who open a company in Indonesia?
The following are mandatory:
- Having a local director ID and a tax ID;
- A power of attorney and domicile letter;
- Having a commissioner passport and ID (if the company is opened by another legal entity, then its company establishment document must be presented).
How long does it take to set up a company in Indonesia?
It can only take one week to incorporate a company in Indonesia. This timeframe can depend on how fast the required documents are provided and if they are presented in the correct form. Omissions or errors will lengthen the registration process.
What are the general company formation steps for foreign investors?
The usual steps are listed below by our team:
- Collect the documents from the foreign founders. These also include the signed power of attorney;
- Select the company name;
- Draft the company formation documents;
- Obtain the tax ID.
What is included in your company registration package in Indonesia?
The following documents are provided to the company owner(s) upon the successful completion of the incorporation process:
- The notary deed of establishment;
- The tax ID;
- The deed obtained from the Ministry of Law and Human Rights;
- The commitment to observing environmental safety;
- The business license;
- Confirmation of the business location (registered address in Indonesia, as required);
- Other documents.
As the list above suggests, the requirements for company formation in Indonesia include several approvals from essential government bodies.
We invite you to watch a video about the incorporation process:
How much does it cost to open a company in Indonesia?
The following main costs are associated with business incorporation. We list some of these below:
- $2,100 for corporate setup. Included here are the deed of establishment and other documents. This also includes a one-year fee for a virtual office;
- $255 for the corporate bank account setup (which must include Rupiah currency) – one account, one-time fee;
Note: Other fees might be applicable in accordance with client requirements.
Are there ongoing costs associated with doing business in Indonesia?
Maintaining a local office is mandatory in Indonesia, and this can be done via a virtual office or a co-shared office space.
As a general rule, the second year costs for companies will be lower than those incurred for the first year setup (as the bank account setup and the corporate setup are one-time costs).
Some examples of services for office space and general accounting, and their costs are listed below:
- Virtual office: $185 per year;
- Co-shared office: $1,440 per year;
- Monthly tax report and accounting: $26;
- Yearly tax report: $255;
- Nominee director service: $255 per month;
- Tax planning solutions: $255 per project.
What taxes can I expect for a company in Indonesia?
Companies in Indonesia are subject to several taxes, among which the most important ones are the corporate tax and the value-added tax. The corporate tax is levied based on the income generated and the type of company. The corporate tax rates are:
- the standard corporate income tax is levied at a flat rate of 25%;
- public companies which are owned by the state in a proportion of 40% are subject to a 20% tax rate;
- small companies with an annual income of maximum 50 billion Rp benefit from 50% of the standard corporate tax;
- companies with an annual income of maximum 4,8 billion Rp benefit from a tax rate of 1%.
The standard VAT rate in Indonesia is 11%.
Setting up a company in Indonesia can be an easy process if the preparation of the documents is supervised by our team of company incorporation agents in Indonesia. For complete support in registration matters and related services, we invite you to contact us.