Company establishment in Indonesia, also known as company registration in Indonesia, is complex since it involves a lot of legal requirements and regulations, although it can be less complex if you are familiar with the local business registration regulations. Furthermore, the type of business entity you choose, whether it’s a Foreign Company (PT PMA), a Representative Office (RO), or another structure, will significantly impact the registration process. It’s essential to carefully consider your business goals and consult with experts to make informed decisions during this intricate procedure.
Establishing a A foreign investment company (PT PMA) is the best option for foreign investors who want full control of their business. PT PMA allows 100% foreign ownership but each sector has its own regulations in terms of the permitted business activities as well as the maximum amount of shares foreigners can own.
Local-owned (PT) company is one of the most common and well-known company types in Indonesia. Compared to a PT PMA company, a local-owned PT company requires a much lower paid-up capital. A local-owned company (PT) can only be registered by locals. As a local-owned company (PT), only Indonesian citizens and Indonesian legal entities are allowed to hold shares as registered shareholders.
A representative office is suitable for foreign investors and business owners that are looking to create brand awareness or conduct market research in Indonesia before starting their business. Establishing a foreign representative office in Indonesia will allow you to create a market presence with the absence of large capital investment, as there is very little incorporation cost.
When a Company has decided to dissolve their entity (liquidation), they need to proceed certain agenda according to the governments regulation. Avoid the hustle and let Double M help you with the liquidation process. Keep in mind that the company will not lose its status as legal entity until the completion of liquidation process and the report of the liquidator is accepted by the General Meeting of Shareholders or by the court.