What is Indonesian Company Formation?

Company formation, for many people this term is very foreign. However, this term is not new in the business world. Indonesian company formation is something that is really needed, especially for foreign capital owners or foreign parties who want to set up a company in Indonesia. It is no longer a secret that the relatively conducive business climate in Indonesia, plus the bureaucracy which provides easier access to setting up a business, has made many foreign capital owners increasingly interested in setting up companies in Indonesia.

Requirements for Company Formation Indonesia

To set up a company with ownership held by Indonesian citizens alone, the bureaucratic stages that must be passed are said to be very difficult. Long bureaucratic stages with a lot of documents that have to be prepared are also obstacles that make it difficult when setting up a company in Indonesia. Especially if. those who founded it were foreign parties. For this reason, foreign capital owners or investors must at least know information about Indonesian company formation, especially the conditions that must be met.

Documents and Permits

The most important and important requirements for Indonesian company formation are documents and permits. In setting up a company or becoming an investor in an Indonesian company, of course there are permits and documents that must be fulfilled. The processing will definitely take a long time. Especially for foreign investors, there will definitely be more document requirements that must be met.

For example, the first permit that must be obtained is a principle permit from BKPM. The basic permit contains basic matters relating to the company to be established. This is followed by a deed of company establishment, then a decision from the relevant ministry and a letter of validation. If so, a new business permit can be processed with other required documents, such as a NPWP for example.

Investment Plan

The next thing needed by foreign investors who want to invest their money or even set up a company in Indonesia is an investment plan. Every foreign investor must have careful planning in setting up a company or investing in Indonesia. This investment plan will definitely be asked or requested by every investor who wants to invest capital or set up their own company.

In this regard, in Indonesia itself, the body related to investment, BKPM (Indonesian Investment Coordinating Board) has established obligations in this regard. In particular, the nominal investment amount is adjusted to the business classification.

Paid Capital

The last thing related to the requirements for Indonesian company formation is paid capital. There is a certain nominal amount of paid capital that must be met by investors, which so far the nominal paid capital is around USD $190,000. So that the process of managing this capital can be easier, it can be done in two ways. The first is by signing a capital statement. The second way is to carry out the transfer process to the company account for this nominal amount.

From the explanation explained above, the conditions that must be met by foreign investors to invest or establish a company in Indonesia are definitely not easy. The process is long, the documents required are a lot, not to mention the language barrier in communicating will really hinder the process. Therefore, to help foreign investors or entrepreneurs, there are agencies or services that offer services to fulfill these company formation requirements. One of the agencies that offers Indonesian company formation services is bnk.co.id. This service will further facilitate the process of fulfilling company formation requirements

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