How To Own A Business In Jakarta If You’re A Foreigner

When it comes to starting a business in Jakarta, foreigners may face some unique challenges. However, with the right planning and advice, it is possible to overcome these and successfully establish a company in the city. In this article, we will provide a guide on how to go about doing this.

To begin with, it is important to understand that there are a few different ways to establish a business in Jakarta. The most common is to set up a representative office, which is a non-operating branch of a company that is based outside of Indonesia. This type of office can be used for marketing, liaising with clients, and other general business activities. However, it is not allowed to engage in any commercial activities or generate any income in Indonesia.

The other option is to establish a limited liability company (LLC), which is a company that is registered and operates in Indonesia. This type of company is more expensive and complex to set up than a representative office, but it offers more flexibility and can be used to conduct a wider range of activities.

To establish a business in Jakarta, you will need to obtain a business licence from the local authorities. This licence will specify the type of business and the activities that are allowed. In order to obtain the licence, you will need to provide certain documents, including a company registration certificate, proof of address and a copy of your passport.

Once you have obtained the necessary licence and registered your company, you will need to set up a bank account in order to conduct business in Indonesia. The majority of banks in Jakarta require a minimum initial deposit of IDR 100,000,000 (around USD 7,500), so it is important to do your research and find a bank that is suitable for your needs.

Once your company is up and running, you will need to appoint a local representative to act on your behalf. This individual will be responsible for managing the day-to-day operations of your business and liaising with the local authorities.

If you are looking to start a business in Jakarta, it is important to seek professional advice and guidance from an experienced advisor. This will help to ensure that you comply with all the relevant regulations and set up your company in a smooth and efficient manner.

Can I start business in Indonesia as a foreigner?

There are many opportunities for starting a business in Indonesia as a foreigner. However, there are some legal requirements and restrictions that must be followed.

Foreigners wishing to start a business in Indonesia must first obtain a business visa. The business visa is valid for one year and can be extended for an additional year. The visa must be sponsored by an Indonesian company or individual.

Once the business visa is obtained, the foreigner must establish a company in Indonesia. The company must have at least two Indonesian shareholders and a minimum capital of 100 million rupiah (approximately US$10,000). The company must also have a registered office and a local director.

It is also important to note that foreigners are not allowed to own more than 49% of a Indonesian company. Therefore, a local partner is required in order to majority own and operate the business.

The process of starting a business in Indonesia can be complicated and it is important to seek professional advice from an Indonesian lawyer.

How much money do you need to start a business in Indonesia?

There is no one-size-fits-all answer to this question, as the amount of money you’ll need to start a business in Indonesia will vary depending on the type of business you want to launch and the size of the operation. However, in general, you’ll likely need at least IDR 100 million (around US$ 7,600) to get started.

There are a few things to keep in mind when starting a business in Indonesia. First, you’ll need to register your business with the Indonesian government and obtain a business license. You’ll also need to register for value-added tax (VAT) and, if you plan to hire employees, you’ll need to register for social security and health insurance.

Additionally, you’ll need to think about how you want to structure your business. The most common business structures in Indonesia are a limited liability company (PT) or a sole proprietorship. A PT is a company with at least two shareholders, while a sole proprietorship is a business owned and operated by a single individual.

If you’re not familiar with the business registration process in Indonesia, it’s best to consult with an accountant or lawyer who can help you navigate the process and ensure that your business is compliant with Indonesian law.

Starting a business in Indonesia can be a challenging but rewarding experience. With the right planning and preparation, you can create a successful business that can thrive in the Indonesian market.

Can you start a business as a foreigner?

There are a few things to consider if you are thinking about starting a business in a foreign country. The process can be complicated and may require some legal assistance, but it can be worth it in the long run.

There are a few things to consider before starting a business in a foreign country. One of the most important things is to research the business laws and regulations in that country. It is also important to have a good understanding of the culture and the way business is done in that country.

Another important thing to consider is the cost of starting a business in a foreign country. There may be some initial costs that are not common in your home country. You may also need to hire lawyers and accountants to help you with the process.

It is also important to consider the language barrier. If you are not familiar with the language, it may be difficult to do business in that country. You may need to hire a translator or interpreter to help you communicate with potential clients and partners.

The process of starting a business in a foreign country can be complicated and it is important to consult with a lawyer or an accountant. However, with a little bit of research and planning, it can be a rewarding experience.

Can I open a business in Indonesia?

There are a few things to consider when opening a business in Indonesia. The first step is to identify the business sector that you would like to open your business in. 

There are a few things to consider when opening a business in Indonesia. The first step is to identify the business sector that you would like to open your business in. Once you have narrowed it down, you will need to get a business license from the local government.

There are a few things to consider when opening a business in Indonesia. The first step is to identify the business sector that you would like to open your business in. Once you have narrowed it down, you will need to get a business license from the local government. You will also need to register your business with the Indonesian Chamber of Commerce and Industry.

There are a few things to consider when opening a business in Indonesia. The first step is to identify the business sector that you would like to open your business in. Once you have narrowed it down, you will need to get a business license from the local government. You will also need to register your business with the Indonesian Chamber of Commerce and Industry. It is also a good idea to get in touch with a local business consultant who can help you navigate the process and offer advice on setting up your business.

How much does it cost to set up a company in Indonesia?

Setting up a company in Indonesia can be a complex and expensive process. There are a number of factors that will affect the total cost, including the company’s type and size, the location of its headquarters, and the services that are required. In general, the cost of setting up a company in Indonesia ranges from around US$2,000 to US$10,000.

The most common type of company in Indonesia is the limited liability company, or PT. The minimum capital required to set up a PT is Rp. 50 million (US$3,500), although this can be increased if the company plans to engage in certain activities, such as trading. The total cost of setting up a PT, including government fees and professional services, typically ranges from US$2,000 to US$5,000.

Larger companies may choose to set up a branch or representative office in Indonesia, rather than a full-fledged company. The minimum capital required for a branch is Rp. 200 million (US$14,000), while the representative office does not require any minimum capital. The cost of establishing a branch or representative office typically ranges from US$3,000 to US$10,000.

In addition to the company registration fees, there are a number of other costs that must be considered. These include the cost of renting office space, hiring employees, and setting up telecommunications and banking facilities. The total cost of doing business in Indonesia can be quite high, so it is important to factor all of these costs into the planning process.

Is it easy to do business Indonesia?

There is no one-size-fits-all answer to the question of whether it is easy to do business in Indonesia. Factors that will affect how easy or difficult it is to do business in the country include the industry you are operating in, the city you are based in, and your own personal experience and connections.

Generally speaking, however, it is thought to be somewhat easier to do business in Indonesia than in some of its neighbouring countries. The country has a large population, making it a potential market for your products or services, and it is also considered to be a relatively cheap place to do business.

However, there are some challenges that you will need to be aware of if you want to do business in Indonesia. The bureaucracy can be quite complex and challenging to navigate, and the legal system is often slow to respond to disputes. There is also a high level of corruption in Indonesia, so it is important to be aware of who you are doing business with and to make sure you have all of the relevant paperwork in order.

Overall, doing business in Indonesia can be a rewarding experience, but it is important to be prepared for the challenges that you may face along the way.”

Can I open bank account in Indonesia as tourist?

Yes, you can open a bank account in Indonesia as a tourist. However, banks in Indonesia may have different requirements for foreign tourists, so it’s best to check with the bank beforehand. Generally, you will need to provide your passport and proof of residence in order to open an account. Some banks may also require a minimum deposit.