How To Register As An Lcc Company

Set upwards a Limited Liability Company in Indonesia

Updated on Friday 18th March 2022

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In Republic of indonesia, limited liability companies can exist established by foreigners through ajoint venture with Indonesian citizens. According to the Visitor Law, anLLC tin be set up upwards for a minimum share capital of l million rupiahs, approximately 3,700 US dollars and must be approved by the Ministry of Justice in the state.

If y'all desire toopen an LLCor anothertype of company in Republic of indonesia, one should consider the Indonesian law, a affair where oursquad of company germination in Indonesia can offer complete help and information.

Types of limited liability companies in Republic of indonesia

The Visitor Law in Indonesia provides for ii types of limited liability companies in Republic of indonesia. The first type is dedicated to local investors and it is simply known as the PT. Its main features are:

it must only have local shareholders and no foreign participation is immune; not an option for those who wish to immigrate to Indonesia;
the minimum share capital depends on the size of the company and starts at 50 one thousand thousand RP;
simply PTs accounted as medium-sized entities can apply for work permits for foreign employees;
the time for the incorporation of a local limited liability company is effectually 8 weeks.

The other blazon of limited liability company is the one with foreign straight investment which is known as the PT PMA and has the following characteristics:

information technology requires an investment program and a minimum share majuscule of USD 7000.000 for any type of business activity;
the PT PMA can be fully or partially owned by foreign investors; entrepreneurs tin can likewise choose to immigrate to Indonesia upon opening this company;
at least 25% of the share capital letter must be deposited upon the registration of the PT PMA;
in that location are no restrictions related to the number of business and work visas released for this blazon of company;
the company registration process of such company takes around 10 weeks to complete.

Steps in opening an LLC in Indonesia

If anLLC is established through a joint venture inIndonesia, the strange shareholder must settle an understanding with an Indonesian partner. One should know that all the incorporation documents must be translated into the Indonesian language. These are going to exist issued past the Ministry building of Police force and Homo Rights. Please consider that the following requirements must be fulfilled whenregistering an LLC:

• prepare the Articles of Association by drafting and notarizing them;
• provide information about the owners of the company (name, address, and nationality);
• appoint the board of director, where at least one should be from Indonesia;
• name a commissioner for the company, regardless of the nationality;
• notarize the owners' signatures and submit them with the Companies Registrar;
• pay the registration fee and obtain the receipt which will exist appended to the incorporation documents;
• register for VAT and other tax purposes and obtain the business registration number;
• provide all the notarized documents with the Ministry of Law and Human Rights.

Once the above-mentioned requirements are fulfilled, an LLC in Indonesiamust register for employment purposes with the Ministry building of Manpower and then utilize for special licenses and permits, in social club to legally kickoff the activities.

We remind that ourspecialists in company incorporation in Indonesia tin can assist foreigners understand the weather condition ofsetting an LLC in Indonesia.

Y'all can also picket our video on how to open a limited liability visitor in Indonesia:

The responsibilities of an LLC commissioner

The appointed commissioner of an LLC in Indonesia tin be not-resident, must supervise the company, needs to analyze the annual report of activities in the firm and approve the budget plan issued by the board of managers. We mention that naming a commissioner for your LLC in Republic of indonesia is a mandatory request.

The experts at our police force firm in Republic of indonesia tin give you more than details on the legal responsibilities.

FAQ on establishing a foreign-owned LLC in Indonesia

i. How long does it accept to open a PT PMA in Indonesia?
Information technology can take a few weeks to found a foreign-owned LLC in Indonesia. The maximum period is around 10 weeks.

2. Does a PT PMA demand a local director?
Yes, just like in the instance of the local LLC, the strange-endemic visitor also needs at least one resident director. This does not mean that the founder cannot immigrate to Indonesia if he wishes to do so.

3. Are nominee manager and shareholder services available in Indonesia?
Yes, these services are available for foreign investors interested in opening whatsoever blazon of visitor in Indonesia.

four. What is the corporate tax in Indonesia?
Companies in Indonesia are imposed with the corporate taxation at a 25% rate.

v. How much does it cost to open an LLC in Republic of indonesia?
The costs of an Indonesian LLC are influenced on the necessary business license fees and on the services included in the company germination packet. This is why nosotros offer personalized services.

If you desire more details about how to annals a limited liability company as a foreigner in Republic of indonesia, please contact our Indonesian team of local company formation consultants.