Indonesia
Capital: Jakarta.
Official languages: Indonesian.
Currency: Indonesian Rupiah.
Advantages of company registration:
- Registration of a legal entity in Indonesia is possible for citizens from CIS countries.
- Favorable taxation regulation.
- Incentives for new companies.
- Company registration provides access to the vast domestic market of Indonesia and Southeast Asia.
Indonesia is an archipelagic state in Southeast Asia. It occupies a significant part of the Malay Archipelago and consists of 13,700 islands, nearly half of which are inhabited.
Stable economic development, a vast market, and a strategic location make Indonesia an attractive place for business. Moreover, the country offers diverse opportunities in various sectors, from tourism to manufacturing.
Taxation and Reporting Features
New companies get tax incentives, applicable for the first three years of operation or until a total turnover of IDR 4,800,000,000 (USD 320,000). The profit tax is set at 0.5% of the company's turnover during this period. Therefore, startups and new enterprises get additional incentives, which ease the tax burden in the initial period of their development.
- Corporate income tax: 22%.
- VAT is 11%.
- Companies must adhere to strict deadlines for submitting tax reports and declarations, as local tax authorities require.
- Companies may also be subject to internal and external audits.
Company Registration
Registration timeline: 1-2 weeks.
Before starting the registration process, it is crucial to determine the type of company. Indonesia offers various forms of enterprises, but we recommend choosing Perseroan Terbatas Penanaman Modal Asing (PT PMA). It is an Indonesian legal entity form designed for foreign investments. It is equivalent to a Limited Liability Company (LLC) in many other countries.
Indonesian companies with foreign capital, registered under the PT PMA scheme, must have a minimum authorized capital of IDR 10 billion, approximately equivalent to USD 670,000. Regulatory authorities in Indonesia do not require a one-time payment of the entire prescribed amount. The transfer of funds to the registered company's capital is exempt from taxation.
You will need to provide the following information to register a company remotely:
- Notarized documents confirming the identity of founders and directors.
- Copies of registration certificates in the country of origin of the founders.
- Documents confirming financial stability (income certificate, bank statement, etc.).
- Three preferred name options for the company.
- Articles of association, which may include the memorandum and articles of association.
- Verification by the director.
How to Quickly Register a Company in Indonesia
To quickly register PT PMA, contact IT-OFFSHORE specialists. The service includes:
- Document preparation (collection, filling out, notarization, etc.).
- Company registration.
- Government fees payments.
- Services of a registration agent for 1 year with the possibility of extension.
- Translation services.
- Corporate cryptocurrency account.
- Delivery of registration documents to any address.
Additionally, there is a fee for opening an account with a local bank and for accounting services.
Conclusion
Company registration in Indonesia can be a complex process that requires understanding local laws and procedures.
Our company offers comprehensive informational support at all stages - from registration to full support of its activities. We help to formalize the company legally and also take on the solution of many subsequent tasks.
Our range of services includes providing a nominal director and shareholders, renting a legal address, and obtaining all necessary licenses and permits for the company. We ensure the whole operation of the business following the laws of the specific jurisdiction.
