Establish a Consulting Company in Indonesia

Updated on Sunday 09th December 2018

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In the last few years, Indonesia has started attracting many foreign individuals who opened businesses in various industries. The qualified workforce which is comprised of young individuals has convinced many entrepreneurs from neighboring or Western countries to move to Indonesia and start their own businesses here. This is how the consulting industry started developing in Indonesia.

There are many sectors in which consultancy can be provided in Indonesia, especially when it comes to foreign citizens moving here and who need to know the legislation applicable to various sectors. Our Indonesia company incorporation specialists also offer consulting services related to the registration of various types of businesses here.
 

Requirements for foreigners starting consulting companies in Indonesia


The Indonesian Company Law provides for different requirements for local and foreign investors who want to open companies here, including consulting businesses. For a foreign investor, the first important step is to choose the entity under which the consulting company will operate under.

Opening a consulting company as a foreigner in Indonesia implies:
 
  •           file a viable business plan with a value of 10 billion Rp, or almost 750,000 US dollars, with the Investment Coordinating Board;
  •           the minimum share capital for foreign-owned limited liability company is 2,5 billion Rp, or approximately 200,000 US dollars;
  •           the company must have at least 2 shareholders who can be natural persons or companies, or a combination of these two;
  •           the company must also be registered with the Companies Registrar in Indonesia.

Our consultants in Indonesia can help foreign entrepreneurs who come here and plan to start their own business. We can help with the preparation of the entire documentation for setting up a company in Indonesia, including a consulting business.
 

Types of consulting businesses in Indonesia


There are many sectors in which a consulting company can operate in. Indonesia is one of the countries which allows for many businesses to be established with the sole purpose of offering consultancy and among these we remind:
 
  1.           the financial sector which is one of the most developed industries in Indonesia;
  2.           the tourism sector which is one of the largest contributors to the Indonesian economy;
  3.           the marketing industry which is in its early stages in Indonesia and many professionals are expected;
  4.           the real estate sector in which various types of consulting services can be provided, such as corporate and residential real estate sales and purchases;
  5.           the human resources field – as mentioned earlier, the workforce in Indonesia is highly skilled, and moreover, Indonesia relies on the largest labor force in Southeast Asia;
  6.           the IT industry which is also quite developed in Indonesia and which comprises several fields of activity.

There are many industries a consultant can offer his or her services in and starting a business in Indonesia for this purpose can be very rewarding. Among these, there are many companies searching for qualified accounting and auditing services which can be provided by our local advisors.
 

Licensing requirements for consulting companies in Indonesia


The first and most important license to obtain when establishing a consulting company in Indonesia is the business license issued by the Investment Coordinating Board and which can be released for a period of one year or for an indefinite period of time depending on the share capital deposited by the business owners.

Once this license has been obtained, the person or persons offering the consultancy services must obtain the specific permits which allow them to operate, if they undertake certain courses. Those who have the necessary experience do not need any additional licenses. The Indonesian company can also choose to hire specialists who can offer consulting services. They can hire locals or bring specialists from other countries. For foreign employees, the company will need to apply for a work permit.

Other aspects which need to be considered by an Indonesian consulting company will be enrolling with specific associations or organizations which will allow them to obtain credibility and attract clients. The promotion of the business is just as important, and a good marketing strategy can help in this regard.

If you are interested in starting a consulting company in Indonesia and need help, please contact us. We can guide you through the whole procedure related to the incorporation of a consulting company, but also of businesses in other prolific industries in Indonesia by offering specialized company formation services.