Open an Online Shop in Indonesia

Updated on Tuesday 27th November 2018

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Indonesia is one of the largest economies in Southeast Asia and from here many products take the road of export not only to neighboring states but to countries all over the world. Starting a business in Indonesia has many advantages, among them the fact that companies here can first produce goods and then sell them all over the world. 

One of the best ways of setting up a company in Indonesia is to open an online shop which can reach every corner of the world. There are specific rules to respect when opening a company in Indonesia, especially when it comes to foreign entrepreneurs.

Below, our company incorporation agents in Indonesia explain these requirements. We can also help foreign investors interested in setting up online stores in Indonesia.

How to register a company for starting an online store in Indonesia

Foreign investors who want to open online shops in Indonesia must respect the provisions of the Company Law and the requirements of the Investment Coordinating Board which provides for the following:
  •           a foreign entrepreneur must deposit at least 2,5 million RP in a local bank account;
  •           for full foreign ownership, the limited liability company is most suited for an online store;
  •           the company must be registered with the Companies Register in Indonesia;
  •           specific licenses must be obtained in order to open a company in Indonesia;
  •           as an online store, the company must operate on a website registered in Indonesia.

Our company formation consultants in Indonesia can help with the registration procedure of a business form which will be used for establishing an online store.

Website creation and domain name registration in Indonesia

The two most important steps for opening an online shop in Indonesia is to have a website created and a domain name registered with one of the accredited registrars. The domain name should be unique and should use the top country domain name which is usually used by e-commerce companies.

The website can be created by one of the many companies offering IT services, among which website creation is widely spread in Indonesia. It should also be noted that there are many e-commerce platforms operating in Indonesia and on which online stores can sell their products and services.

Setting up a merchant account for an online store in Indonesia

One of the most important steps in starting an online shop in Indonesia is to have a merchant account set up. This type of bank account will enable the company to process payments from clients. It must be noted that having a merchant account attached to an online company is a mandatory requirement in Indonesia.

Our local advisors can offer full information on all the requirements related to the special requirements for opening an online store in Indonesia. We can also help with the incorporation of the company which will be used for setting up an online shop in this country.

Registering the online shop’s name as a trademark in Indonesia

Even if this not a compulsory requirement, having the domain name of the Indonesian online store registered as a trademark is highly recommended because of a large number of such businesses operating on the local market.

The registration can be done with the Intellectual Property Office in Indonesia. The registration will grant the applicant the right to use it for 10 years. This right can be extended for another period of 10 years based on a new application.

It is important for online shop owners to register their domain names as trademarks in Indonesia in order to avoid having their business names used for deceiving the company’s clients.

Why open an online store in Indonesia?

Opening an online shop in Indonesia has many advantages. Among these, we mention the fact that many of the products reaching the global market are manufactured in Indonesia, therefore having locally-produced goods and sold directly from Indonesia is a great advantage.

Also, starting an online shop in Indonesia implies the following benefits:
  •           a large number of products which can be sold all over the world;
  •           many types of online shops which can be set up here;
  •           operating on one of the most important markets in Southeast Asia;
  •           taking advantage of one of the most numerous workforces in the world;
  •           various tax incentives offered by the Indonesian government to foreign investors;
  •           the possibility of setting up a small business which can later be expanded.

Online shops must respect certain requirements which can be explained by our team of professional consultants in company formation in Indonesia. Do not hesitate to contact us for assistance in registering any type of company in Indonesia.