Indonesia is one of the largest economies in Southeast Asia and from here many products take the road of export not only to neighboring states but to countries all over the world. Starting a business in Indonesia has many advantages, among them the fact that companies here can first produce goods and then sell them all over the world.
One of the best ways of setting up a company in Indonesia is to open an online shop which can reach every corner of the world. There are specific rules to respect when opening a company in Indonesia, especially when it comes to foreign entrepreneurs.
Below, our company incorporation agents in Indonesia explain these requirements. We can also help foreign investors interested in setting up online stores in Indonesia.
Opening an online business means that the owner does not need to immigrate to Indonesia, however, this can still be an option.
If you also wish to relocate to the country, our immigration lawyers in Indonesia will give you details.
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Foreign investors who want to open online shops in Indonesia must respect the provisions of the Company Law and the requirements of the Investment Coordinating Board which provides for the following:
Our company formation consultants in Indonesia can help with the registration procedure of a business form which will be used for establishing an online store.
If you want to understand the accounting and reporting requirements that apply to online stores in the country, you can discuss the relevant regulatory requirements with our team of accountants in Indonesia. We assist businesses from their earliest stages, ensuring full compliance with the tax filing and payment deadlines, as well as bookkeeping and the submission of the annual financial statements.
The two most important steps for opening an online shop in Indonesia is to have a website created and a domain name registered with one of the accredited registrars. The domain name should be unique and should use the top country domain name .co.id which is usually used by e-commerce companies.
The website can be created by one of the many companies offering IT services, among which website creation is widely spread in Indonesia. It should also be noted that there are many e-commerce platforms operating in Indonesia and on which online stores can sell their products and services.
One of the most important steps in starting an online shop in Indonesia is to have a merchant account set up. This type of bank account will enable the company to process payments from clients. It must be noted that having a merchant account attached to an online company is a mandatory requirement in Indonesia.
Our local advisors can offer full information on all the requirements related to the special requirements for opening an online store in Indonesia. We can also help with the incorporation of the company which will be used for setting up an online shop in this country.
If you want to open a bank account or merchant account as part of the process required for immigration to Indonesia, we can help answer your questions.
Even if this is not a compulsory requirement, having the domain name of the Indonesian online store registered as a trademark is highly recommended because of a large number of such businesses operating on the local market.
The registration can be done with the Intellectual Property Office in Indonesia. The registration will grant the applicant the right to use it for 10 years. This right can be extended for another period of 10 years based on a new application.
It is important for online shop owners to register their domain names as trademarks in Indonesia in order to avoid having their business names used for deceiving the company’s clients.
Opening an online shop in Indonesia has many advantages. Among these, we mention the fact that many of the products reaching the global market are manufactured in Indonesia, therefore having locally-produced goods and sold directly from Indonesia is a great advantage.
Also, starting an online shop in Indonesia implies the following benefits:
Investors who decide to open an online store in Indonesia, given these advantages, can also reach out to us if they are interested in immigration to Indonesia.
In order to start an e-commerce company, a local or a foreign investor must first follow the traditional company registration procedure through the Trade Registry in Indonesia.
The following procedure must be followed in order to register an e-commerce company in Indonesia:
Our Indonesia company incorporation specialists can help with the registration of a business form for creating an online store.
You can make sure that your online business remains full compliant with the ongoing regulations by working with our team of Indonesian lawyers. We are a full-service law form that offers corporate and business law solutions and can also answer all questions concerning labour law. Our attorneys also assist clients in matters concerning tax law, or intellectual property protection.
E-commerce is highly regulated in Indonesia, which is why starting such type of business here is very safe. The government has even categorized e-commerce companies and those who want to start such a company can choose between the following forms:
The first type of e-commerce company is the most popular in Indonesia and has registered a spectacular growth in the last few years. The second type of company is also popular as local e-commerce platforms act as distribution channels for foreign companies all over the world.
When it comes to foreign investors interested in starting e-commerce companies here, they should know that they can operate in most industries with a few exceptions.
Foreign entrepreneurs relocating to Indonesia can open various types of e-commerce companies which they can also fully own. These are web portals through which they can sell user rights to those who want to publish content, marketplaces which can sell goods or can allow other buyers and sellers to meet and reservation websites.
With respect to the restrictions applied to foreigners, these can own 49% in e-commerce companies in the publishing sector, marketplaces created for advertising purposes and distribution e-commerce platforms.
Our local agents can provide full information on the rights and obligations of foreign investors setting up any type of company in Indonesia, including e-commerce companies.
Considering most e-commerce companies are established as online stores in Indonesia, they must respect a few laws which relate to:
All e-commerce companies in Indonesia must respect the Requirements for Licensing Services of E-Commerce Trading and Digital Signatures and the Contract Law imposed by the Ministry for Trade in Indonesia.
Online shops must respect certain requirements which can be explained by our team of professional consultants in company formation in Indonesia. Do not hesitate to contact us for assistance in registering any type of company in Indonesia.
Do you want to move to the country for business purposes? Starting a business allows a foreign national to qualify for a special type of stay permit, which can be extended. You can reach out to our experts if you are interested in immigration to Indonesia, as well as if you have already started the process and you have questions about the processing times, and other issues concerning your application.