Set up a Limited Liability Company in Indonesia
Updated on Monday 30th October 2017
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In Indonesia, limited liability companies can be established by foreigners through a joint venture with Indonesian citizens. According to the Company Law, an LLC can be set up for a minimum share capital of 50 million rupiahs, approximately 3,700 US dollars and must be approved by the Ministry of Justice in the country. If you want to open an LLC or another type of company in Indonesia, one should consider the Indonesian law, a matter where our team of company formation in Indonesia can offer complete assistance and information.
Steps in opening an LLC in Indonesia
If an LLC is established through a joint venture in Indonesia, the foreign shareholder must settle an agreement with an Indonesian partner. One should know that all the incorporation documents must be translated in the Indonesian language. These are going to be issued by the Ministry of Law and Human Rights. Please consider that the following requirements must be fulfilled when registering an LLC:
• prepare the Articles of Association;
• provide information about the owners (name, address, nationality);
• appoint the board of director, where at least one should be from Indonesia;
• name a commissioner regardless of the nationality;
• notarize the owner’s signatures;
• pay the registration fee;
• register for VAT and other tax purposes;
• provide all the notarized documents with the Ministry of Law and Human Rights.
Once the above-mentioned requirements are fulfilled, an LLC in Indonesia must register for employment purposes with the Ministry of Manpower and then apply for special licenses and permits, in order to legally start the activities. We remind that our specialists in company incorporation in Indonesia can help foreigners understand the conditions of setting an LLC in Indonesia.
The responsibilities of an LLC commissioner
The appointed commissioner of an LLC in Indonesia can be non-resident, must supervise the company, needs to analyze the annual report of activities in the firm and approve the budget plan issued by the board of managers. We mention that naming a commissioner for your LLC in Indonesia is a mandatory request.
If you want more details about how to register a limited liability company as a foreigner in Indonesia, please contact our Indonesian team of local company formation consultants.