In the year 2016, Jokowi issued an economic policy that makes the business actor given the ease to manage business licensing which is by the issuance of Policy Package XII. With this deregulation policy package, how to set up a company in Indonesia will be simplified. The policy allows the virtual office to encourage young people to establish their own business (entrepreneurship).
In general, the World Bank sees that in 2017 how to set up a company in Indonesia is no longer need a minimum capital requirement and the process requires 24.9 days starting from the establishment of the deed of establishment of the company, NPWP, SIUP, and TDP, as well as WLK (Obligatory Report Employment). This step of how to set up a company in Indonesia will take 47.8 days. Here are the procedures of how to set up a company in Indonesia.
How to Set Up Company In Indonesia
- Preparing the company data establishment
This is the first step that you have to go through on how set up company in Indonesia. The data contains the company name, company location, company objectives, company capital structure, and the company board. The name of the company is very important on how set up company in Indonesia. Company name must be at least 3 syllables, and should not use foreign uptake or use the name of company that has been used by others.
- Making Deed of Establishment in Notary
The next step on how to set up a company in Indonesia is making the deed of establishment of the company in the notary. The Deed of Establishment of the company does not have to be made by a Notary who is in the same position as the domicile of your business. You can use any Notary as long as they has SK appointment, sworn and registered in Kemenkumham. This step is very essential on how set up company in Indonesia.
- Approval of Ministerial Decree of Establishment of The Company
The third step that you have to do on how set up company in Indonesia is to obtain the approval of Ministerial Decree of company establishment. The third step of how set up company in Indonesia in detail is after you receive the Deed of Establishment of your company, the Notary will submit legalization of your company to the Minister of Law and Human Rights. Then the Minister will issue the approval letter, so the company has been approved as a legal entity recognized by the State. As a result of this, the company is now considered as a new legal subject, which has the rights and obligations such as obligation of having tax number and obligation to report tax.
- Administering Company Domicile
Company domicile explains about where the company address is located. The company domicile is issued by village office. Thus, the domicile license arrangement is regulated by each local government. Permission of domicile explains about where the company is addressed, and also listed the type of business and the number of labor. Domicile permit valid for a maximum of 1 (one) year and can be extended. In the process of how to set up a company in Indonesia, the method of handling domicile is essential.
- Managing TDP (Corporate Registry)
TDP is a list of official records held by or under the provisions of the law or the regulations of its implementation and contains items that must be registered by each company and authorized by the competent authority. In making company, this process should be done either at the head office or as a branch office.
Hopefully, this article above can be useful for you in providing adequate information about how to set up a company in Indonesia, because before establishing the company, you’ll have to content yourself with the right information.