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Guide to choosing a company registration consultant in Indonesia

Guide to choosing a company registration consultant in Indonesia
The expertise of company registration consultants emerges as an invaluable asset for you who want to start a business in a new location. These adept professionals play a crucial role in simplifying the intricate process, ensuring compliance with local regulations, and expediting the establishment of your business entity.

Why hire a company registration consultant in Indonesia?

Accessing business registration services is crucial for businesses in Indonesia due to the complex regulatory landscape and nuanced local practices. Engaging company registration consultants offers numerous advantages.

  • Adeptly navigating complex legal procedures
  • Guaranteeing adherence to Indonesian laws
  • Minimizing time and expenses
  • Delivering personalized guidance
  • Managing administrative tasks
  • Capitalizing on local networks
  • Mitigating risks
  • Enabling business owners to focus on core operations

In general, a consultant eases the process of entering the Indonesian market, ensuring smooth operations and regulatory compliance.

Common challenges faced when registering a company in Indonesia

When you consider registering your company in Indonesia, several challenges may arise from the complex rules and bureaucratic procedures involved. Several common obstacles include:

Language difficulties

Most registration documents are written in Bahasa Indonesia. This situation will force you to require assistance from a translator or legal advisor.

Lack of transparency

The process for obtaining business licenses can be confusing. The presence of consultants will help you to find clear information on requirements and procedures.

Delayed processing time

The registration process can be time-consuming, with potential delays caused by bureaucratic processes or issues with the online submission system.

Limited access to financing

Foreign investors might need help accessing financing from Indonesian banks due to a lack of credit history and stringent collateral requirements.

Advantages of using company registration consultants

Company registration consultants Indonesia: Essential guide

Collaborating with consultants and corporate services providers can provide numerous advantages to facilitate your business entry into Indonesia. Some of these benefits include:

1. Understanding business needs

Consultants build a strong client relationship by comprehensively understanding their business goals, objectives, and requirements. They assess the nature of the business, considering industry, size, ownership structure, and liability protection.

2. Name and trademark assistance

Consultants help clients find unique and legally permissible business names while conducting trademark searches. They guide clients through the trademark registration process.

3. Legal compliance

Consultants guide clients through the registration process, ensuring compliance with legal requirements and assisting in document preparation, including the correct inclusion of essential details.

4. Registration & liaison with government authorities

Consultants collaborate to secure the required registrations, permits, and licenses. They act as intermediaries, handle inquiries, and maintain ongoing compliance.

Consultants can also represent clients during registration, interact with government officials and legal professionals, and address inquiries.

They are dedicated to streamlining the process, maintaining compliance, and ensuring effective communication for a successful registration outcome.

5. Advisory services

Consultants offer a range of advisory services. This includes assistance with tax registration, labor law compliance, certification acquisition, bank account setup, and practical aspects of business initiation.

They also guide tax obligations, HR policies, location selection, and operational processes, ensuring clients successfully navigate business complexities.

6. Industry knowledge

A reputable consultant keeps clients informed about registration progress and any changes in legal requirements. They help clients understand ongoing compliance responsibilities, including filing annual returns and maintaining accounting records.

With deep industry knowledge, consultants stay updated on the latest regulations, providing reliable advice for a successful business setup in Indonesia.

Read more: 15 strategies for global business expansion in Indonesia

Qualities to look for in company registration consultants

When you’ve chosen to enlist consultants for your company formation services, there are several critical aspects to remember. These factors can substantially impact your company’s compliance and overall success. Among others are:

1. Expertise

Professional and knowledgeable consultants can guide you through registration. They will ensure all legal requirements are met promptly and effectively. They help you choose the proper business structure, prepare and file necessary documents, and provide compliance-related advice.

2. Legal compliance

Registering a company involves adhering to various legal requirements, including obtaining licenses, paying taxes, and complying with labor regulations. Professional consultants help you navigate these obligations, reducing the risk of legal problems and penalties.

3. Reputation

The choice of consultants can impact your company’s reputation, especially during registration. Opting for consultants with a proven track record can create credibility and trust with stakeholders like investors, customers, and suppliers.

4. Saving cost and time

Professional consultants streamline the registration process, preventing costly errors, reducing expenses, and saving time. They can also identify potential issues and offer strategies to minimize risks.

How do I register a company in Indonesia?

Registering a company in Indonesia involves several steps, those are:

No

Steps

Descriptions

1

Name application Register your desired company name with the Ministry of Law and Human Rights.

2

Deed of establishment Apply online, provide the necessary documents, and obtain legalization for your company’s establishment.

3

Company domicile certificate Obtain the mandatory Certificate of Company Domicile.

4

Tax registration (NPWP) Get a tax ID with the local tax authority for financial purposes.

5

Business Identification Number (NIB) Obtain a unique identification number from the Online Single Submission system.

6

Licenses Apply for any required business licenses depending on your business type.

7

Work visas Secure work visas (KITAS) for local and foreign employees.

8

Corporate bank account Open a corporate bank account to deposit your capital.

Besides the above steps, you should submit labor reports to the Ministry of Labor, apply for social security programs for workers, and get healthcare and employee welfare insurance from the Social Health Insurance Administration Body (BPJS).

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InCorp Indonesia as your consulting partner

Registering your company to operate in Indonesia might involve a complex process that can challenge your company’s expansion plan.

However, with the assistance of experienced company registration consultants, the process can be more accessible and smoother and save you time and money.

With more than a decade of experience in market entry in Indonesia, which offers company incorporation services and business licensing, InCorp Indonesia can be your best option to help you set up a business in one of the most lucrative markets in the country.

Start consulting with our expert consultants by clicking the button below.

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    Pandu Biasramadhan

    Senior Consulting Manager at InCorp Indonesia

    An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Frequently Asked Questions

    In Indonesia, there are three company types that you can establish based on your business nature, requirements, and preferences.

    • Local Company (PT): 100% local ownership.
    • Foreign Company (PT PMA): can be entirely owned by foreigners; however, restrictions in business sectors apply
    • Representative Office: a branch of the parent company overseas whose purpose is to conduct marketing-related activities without generating income or profits

    Limited liability company with foreign direct investment ranging from 1-100%

    In Indonesia, a PMA company is typically required to submit various reports to relevant authorities, such as:

    • Annual financial report
    • Investment realisation report
    • Manpower and employee welfare report
    • Expatriate utilisation report
    • Company loan repot
    • Foreign exchange and prudential principles report

    However, depending on the business activities and classification relevant authority may require additional reports from a PMA company.

    Shareholders must appoint a liquidator during the shareholders’ meeting approving liquidation. If no liquidator is appointed, the Board of Directors assumes the role. Creditors can submit claims within two years of the liquidation announcement, provided there are proceeds available. If proceeds have been distributed, shareholders must return them proportionally to settle creditor claims. Whereas employee termination packages vary based on employee status, service years, and reason for liquidation.

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