Foreign investors interested in setting up their businesses in Indonesia have plenty of industries to choose from and various types of companies they can select in order to obtain profits. Those who do not want to enter into commercial relationships are invited to open foundations in Indonesia.
The Indonesian foundation, also known as Yayasan, is governed by two laws: Law No. 16 of 2001 which was last amended in 2004 which is also known as the Foundation Law and the Government Regulation No. 63 of 2008.
Our company registration agents in Indonesia can offer more information on the regulations applicable to foundations.
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Requirements to create a foundation in Indonesia
The Foundation Law acknowledges the right of the following of creating foundations in this country:
– natural persons;
– legal entities;
– Indonesian citizens;
– foreigners.
The Indonesian foundation can have more members who must appoint a Board of Advisors, a Board of Supervisors and a Board of Executives.
Also, foreign investors setting up a foundation in Indonesia must have initial assets worth a total of 100 million IDR. These assets can be divided between a group of investors.
There is no need to immigrate to Indonesia to create a foundation, however, our team can assist you if you wish to do so.
Our company formation consultants in Indonesia can offer more information on the requirements applicable to foreign investors who establish a foundation here.
Documents required to set up an Indonesian foundation
The main documents through which a foundation is registered is the deed of establishment. This document will contain the articles of association and the regulations under which the Indonesian entity will function. The document must be drafted in Indonesian. In the case of foreign members, these must also attach passport copies. They must also include a statement letter through which they take the obligation to act in good faith.
Foreign investors interested in opening foundations in Indonesia can use a power of attorney through which they can delegate a third party to register the entity with the Ministry of Foreign Affairs first and then with the Ministry of Law and Human Rights. Alternatively, they can register the foundation after they immigrate to Indonesia.
Setting up a foundation as a foreigner is rather complex, which is why we invite you to contact our Indonesia company incorporation representatives for assistance in registering it with the right authorities.