As a business owner planning to register a business in Indonesia, you should be familiar with the legal entities. Thorough knowledge of these business structures will lead to a faster and easier registration process for your company.
Below is an overview of the three legal entities in registering a company in Indonesia.
Local Business
A foreigner can register a business in Indonesia as a local citizen or a foreign investor through a nominee arrangement. Although a local business entity is not subjected to strict standards and limitations, it requires 100% local ownership.
Foreign-Owned Business
On the other hand, if a local business’s terms and conditions aren’t that satisfying for you, registering as a foreign-owned limited liability business is the next best option. With this setting, a foreigner is registered as the owner of the company. However, business activities and sectors determine the extent of foreign ownership.
Representative Office
The third option is registering a company in Indonesia through the representative office. A representative office is a branch of a mother company abroad. This legal entity’s function is to organize and conduct marketing activities and prepare the company to develop either a foreign-owned business or a local company. Note, however, that no direct selling or generating revenue is allowed for a representative office.
How To Start Registering Your Business In Indonesia?
Registration processes and incorporation services Indonesia have become much more comfortable and available. But, it can still be stressful for those who are not familiar with the process, especially if there’s a lack of local support. Knowing the specific move to every step is essential. Partnering with professionals to guide you with the process is still the best way to do it.
3E Accounting Indonesia is the leading company registration service provider. We can help you register your company from scratch and support your needs. Contact us to learn more about our services.
