When examining a jurisdiction in which to incorporate, the first thing to look at is the legal code. The underlying law in INDONESIA is mixed (civil law and adat) law. You will want to get some local advice as to how to best structure a company in INDONESIA. One is permitted to electronically sign documents.
The country code ID is for INDONESIA and the most common company type in INDONESIA is a LLC (PT, PMA) .
When setting up, budget about 10 Weeks to incorporate a LLC (PT, PMA) in ID. The types of cash you can use to capitalize your business is often IDR and any legal tender.
Redomiciliation is not common. One is typically not permitted to change the jurisdiction.
There must be at least This means it is not possible for you to own a LLC (PT, PMA) in INDONESIA as a sole shareholder. You must have other shareholders, they can be nominees or de facto shareholders. Corporate Shareholders are permitted, which means you can have a legal entity as a shareholder. Foreign ownership is permitted, up to 100% of the ownership of the LLC (PT, PMA) .
A LLC (PT, PMA) is only required to have one director. Consequently, corporate directors are permitted. Directors should not expect to be private, as they are disclosed. There is a body of law which requires companies to hold an annual meetings of shareholders.
A registered office is a requirement, whom the company will pay yearly, for an agent which can receive litigation or other legal process on behalf of the company. A related requirement, a corporate secretary is not always necessary, at least not by law.
There is an obligation to file yearly tax returns. On that note, there is oftentimes a requirement to have these accounts audited.
Thin capitalization rules are in effect. A company is thinly capitalised when there is a greater proportion of debt than equity. The minimum capitalization for a Indonesia Mixed (Civil law and Adat) is $300,000.
A corporate director is permitted, meaning this country is a good option if you are setting up a structure where you want to protect director liability.
The directors are disclosed in the public registry of Indonesia, KADIN. Shareholders are disclosed in the KADIN.
Typically companies take 10 weeks to setup and there are 1 director(s) required and 2 shareholder(s) required at the time of incorporation.
Overall we think Indonesia is a good option and have given it a score of 67 as an IO score, using the Incorporations.IO proprietary formula.
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