Indonesia is one of the most appealing countries for starting a business in Southeast Asia because of its numerous population and cheap workforce. These are two of the most important reasons why foreign companies set up branches and subsidiaries in Indonesia instead of choosing other countries in the region.
One of the most lucrative business ideas in Indonesia is setting up a company in the textiles industry, especially when it comes to selling textiles products. Because many of the fabrics are manufactured here, the production cost of textiles is also cheaper compared to European countries, for example.
If you want to open a company for selling textiles in Indonesia, our company formation agents in Indonesia can help you register it. We can also help you if you want to immigrate to Indonesia.
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Both local and foreign investors can open companies for selling textiles in Indonesia, the only difference being the legal form which can be used for carrying out their activities. The limited liability company remains a preferred business form for local and overseas investors, as foreigners can use the PT-PMA (limited liability company with full foreign ownership) to set up a textiles business.
Foreign companies can easily set up branch offices in Indonesia and sell their products here.
Our Indonesia company incorporation agents can help foreign investors register any type of company here. We will also assist those who wish to immigrate to Indonesia, based on opening a business.
There are no specific laws which refer to the creation of companies selling textiles in Indonesia, however, businesses here must comply with the standards and regulations imposed by industry authorities, such as the Indonesian Association of Synthetic Fiber Producers (APSYFI) and the Ministry of Industry and Trade, as well as those of the Customs Authorities which have put in place specific regulations when importing and exporting textiles and fabrics into/out of the country.
The following types of textile products can be sold in Indonesia:
When referring to selling textiles in a shop in Indonesia, these can be sold in traditional stores or online shops. It is important to know that for selling goods online in Indonesia, one is required to register a domain name.
Our company registration specialists in Indonesia can help you set up both traditional and online shops for selling textiles.
We can also advise on accounting requirements in Indonesia.
The opening of a company for selling textiles in Indonesia is not subject to strict licensing criteria; however, these companies are required to obtain import permits when selling imported products. Also known as a limited import license, the permit which can be used for bringing textiles into Indonesia can be used for the sale of those specific items.
The following documents must accompany the textiles products imported into Indonesia:
It is important to note that certain prohibitions can be imposed when importing certain fabrics or products made of certain materials.
Our local consultants can assist with information about obtaining various permits and licenses for your business in Indonesia.
In June 2019, the government issued Regulation No. 45/2019 which provides for tax deductions of up to 300% for companies investing in research and development which applies to a large number of textiles companies in Indonesia. This way, the government aims at supporting not only the textiles sector but also the manufacturing industry which plays a major role in the country’s economy.
According to the government:
If you are interested in setting up a business for selling textiles in Indonesia, please contact our local agents.
