Indonesia is an archipelagic country with a young and growing economy, which is gradually opening up as an investor’s paradise. Nevertheless, the Indonesian business environment organisation is still rather unclear, and it is not void of aggressive procedures.
Elements of the business organisation
The activities that need to be defined before any business is started are therefore the right business structure determination for your business. In Indonesia, for foreign investors, the PT PMA is Penanaman. Modal Asing is a limited liability form of the company foreign investment is allowed up to 100% depending on the business activity. PT PMA is a company that is established by 2 (two) or more persons in a notary deed which is in Indonesian language. Namely, as a general rule, all of the Company’s founders are obliged to purchase shares at the moment when the Company is being established.
Company name reservation
Registration of your company name is essential and you should not breach some rules of Indonesia. Note that the company name which you will be choosing has to be composed of only three words. These words may also be borrowed from other languages other than Indonesian as it was observed from the following table. It is necessary to note that none of the combinations or any part of these names could have been registered in the Ministry of Law and Human Rights of Indonesia system.
Another regulation that contains information about the sectors that are closed, new for FDI or opened partially for FDI Completely is the Negative Investment List or Daftar Negatif Investasi.
Some of the common documents that may be drawn up to create a Memorandum of Association include:
Preparation of articles of articulation
The Articles of Association include the legally binding charter and rules of the company, as well as the primary and secondary objectives. And the organization and other aspects of the activity of the company, are to be notarized by the Indonesian public notary.
Company registration
If the Articles of Association are notarized one may proceed with registration of the company using the one-stop business service OSS. For instance, after registering, they will give you the Business Identification Number or NIB.
Satisfaction of the Capital and Investment Regulation
According to the company’s form, the minimum share capital for a PT PMA is Rp 10,000,000,000 (ten billion rupiah). For the issued and paid-up capital or as provided by the law. Furthermore, in general, the minimum investment to be made by a PT PMA shall be not less than 10 billion Rupiah. Except land and building for every 5 digits KBLI per project location.
Obtain necessary licenses
Depending on your business activities, the PMA Company may be required to obtain the following business licenses, among others: The business licenses the PMA Company may need depending with business activities include the following:
Basic requirements for a business license, namely: consent and/or approval for its suitability for some activities. Approval for space use/compliance, building permit for utilization eligibility, Sertifikat Laik Fungsi (SLF) and Building Ownership Evidence Certificate/surat bukti kepemilikan bangunan gedung (SBKBG). And/or other documents and clearances about the environment.
Risk-based business licenses, namely: company registration or identification number (Nomor Induk Berusaha or NIB), business license, and/or standard certificate (sertifikat standar).
Business license that concerns the IKB or izin kegiatan usaha, which is the activity license of the business.
Tax registration
The final procedure is to inform the tax office of the company and receive the NPWP, and Taxpayer Identification Number.
Hiring employees
Therefore, Nestle’s employees need to study Indonesian labour laws and the social security or BPJS to be in a position to effectively hire individuals for the company.
You may also find these articles helpful
Moving to Antigua and Barbuda- Full Relocation Guide
Options of becoming a citizen of St. Vincent and the Grenadines
Options of becoming a Citizen of Sao Tome