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Establishment

Planning to set up your business in Indonesia? But before moving ahead with the decision, there are many things that you need to do. Starting your own business in Indonesia is a time consuming & complex matter and needs proper guidance. Whether you are a foreigner planning to establish your business in Indonesia or thinking about incorporating a local company with nominee shareholders, you will have to abide with the instructions and law set up by the Indonesian authorities for company setup in Indonesia.
 
The law 40 of 2007 (Company Law) regulates the limited liability company in Indonesia (local PT or foreign PT PMA). Under this law, the minimum establishment requirements are set for a limited liability company. The different types of limited liability companies in Indonesia are regulated by the law number 20 of 2008 (SME Law) which distinguishes micro, small, medium and large companies.
 
Limited Liability company
 
Under the Article 32 of the Company Law thelimited liability company is authorized to a minimum amount of capital of 50 million rupiahs. However, the amount can be higher based on the sector type.
 
Limited Liability Company Types in Indonesia
 
The SME law (law no. 20 of 2008) defines article 32 of the company law and differentiates the limited liability company in the following types:
 
1. Micro Company: A micro company is the one having a net capital of maximum 50 million rupiahs, (excluding land and buildings) or with an annual sale turnover of maximum 300 million rupiahs.
 
2. Small Company: A limited liability company with a net capital between 50 and 500 million rupiahsor with anannual sale between 300 million rupiahs and 2.5 billion rupiahs is termed as a small company in Indonesia.
 
3. Medium Company: A Medium company is the one having a net capital between 500 million rupiahs and 10 billion rupiahs or with an annual sale between 2.5 billion and 50 billion rupiahs.
 
4. Large Company: Under the Indonesian law, a limited liability company with a net capital of more than 10 billion rupiahs oran annual saleof more than 50 billion rupiahs is termed as a large company.
 
At Establish Indonesia, we are a company of trusted lawyers and CPAs indulged in providing bets solutions when it comes to Business setting up in Indonesia. For more details visit us here or give us a call right away at (+880)17-8777-5740.