Among other countries in Southeast Asia, Indonesia ranks high in offering diverse business opportunities for investors. Thus, starting a business in Indonesia leads a company to higher rates of scalability and profitability. But to do that, you need to know every critical factor about how to set up a company in Indonesia.
Below are steps on how to set up a company in Indonesia.
Step 1: Secure A Business Name
The first step in Indonesia company incorporation is to settle on a business name approved by a lawyer through electronic processing. The process charges 200,000 IDR to an accredited bank. After the business name’s approval, the lawyer gives you a clearance and a payment receipt with a unique code. The special code will be the key to receive and reserve your brand name for 60 days at most.
When securing your business name, make sure that the brand name is not:
- similar to or legally used by other business entity,
- identical to any name of a country, territory, or foreign company without authorization.
- consisting of a set of real numbers, letters, or figures that do not form words.
Step 2: Request For The Establishment Deed
Filling and submitting the application for the establishment deed can be made online. It is sent by mail and a certified copy of money transfer advice, and a bank account certificate. It takes a least three working days to review and approve applications.
Upon approval, the Ministry of Law grants comprehensive legislation to your business establishment. Also, the Ministry will announce your business’s establishment in the State’s Gazette.
Step 4: Secure A Company Tax Identification Number (NPWP)
A business must have a valid TIN ID for revenue and taxation purposes. To apply for the TIN or the NPWP (Nomor Pokok Wajib Pajak), the company must present the deed of incorporation, the identification card of a current director, and a letter of declaration confirming the location of the business. The application takes approximately 2-3 working days.
Step 5: Register Your Company Online
The Indonesian government rolled out a new single submission process for business registration. By applying online, you’ll receive all the legal documents, together with your business registration number. These documents include:
- The import license (previously API-U),
- Unique Identification Number for Customs (previously NIK),
- The business registry number of your company,
- Registers your company with the government’s health and social security systems.
What To Do Next?
It is essential you’re aware of how to set up a company in Indonesia before actually expanding to Indonesia. But it doesn’t end there; from policies, resources to operations, you have to consider many things. The drawback is that it might be impossible to keep on track of everything.
You can manage difficulties with the help of business registration experts. 3E Accounting Indonesia provides business registration and incorporation services. We have in-house experts who can respond to your queries about how to do business in Indonesia. Contact us, and let’s get things done.