Company Formation can be defined as the incorporation of a company to have its legal identity for the recognition and protection of the government. If you want to make your company a legit one, you have to undergo this process. There are just some papers to be prepared and some procedures to follow for the company formation in Indonesia. Once you follow these, you can never go wrong. Sit back and relax as we give you some important notes in setting up your own business.
Take note of these points for your company formation in Indonesia
- Select what type of business you want to pursue. There are 3 types of business in Indonesia. These are the local-owned, foreign-owned, and a representative office. If you’re a foreigner, the most feasible for you is the foreign-owned as the local-owned are only for the locals and the representative office type is usually for non-profit organizations.
- Choose whatever sector of business you prefer. Even if you have already chosen a foreign-owned business, you still have to decide what industry you want to engage in. Would you like to engage in the food sector? Or perhaps the tourism sector? It’s up to you. However, it will be to your advantage if the one you will choose is something you have passion about.
- Run an Environmental Scanning for your intended business. Make a regulatory check for the country you want to do your business. Are there laws forbidding your business? For example, in Singapore, bubble gum is prohibited. Obviously, you can’t have this business in that country. In other countries, on the other hand, they impose heavy taxes on cigarettes and alcohol to prevent their citizens from consuming these items a lot. You should be knowledgeable on these matters as it affects your business.
- Make you have enough capital in the bank. Finding your location and filling up with furniture is already expensive. Plus, you can’t expect your business to earn right away. Make sure you have appropriate funds before you begin.
On top of this, the government of Indonesia is mandating foreign nationals wanting to do business in the country to have a capital of 10 billion IDR, where 25% of this must come from shareholders. It’s really a lot for your Company Formation in Indonesia.
Do you need Company Formation services in Indonesia?
If you need Company Formation services, you can contact 3E Accounting. They are among those known companies that can help you with your opening company Indonesia.