Types of Companies in Indonesia

Updated on Saturday 17th February 2018

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Setting up a company in Indonesia may solicit complete attention as it is necessary to choose the proper business form for future activities. An entrepreneur can set up a limited liability company, nominee LLCs or foreign-owned LLCs. Our company formation agents in Indonesia can provide you with complete information regarding the requirements and the preparation of the documents for each type of business form.

Find out from the video below the types of companies which can be registered in Indonesia:

Indonesian limited liability company

An optimal business entity for entrepreneurs in Indonesia is the limited liability company which can be registered if all requirements are met. For example, the LLC must be created by at least two Indonesian investors, as this form is directed to local entrepreneurs. A manager and a commissioner need to be appointed, considering that the commissioner can be of a different nationality. The representative of the Indonesian LLC has varied responsibilities among which we mention the most important ones: dealing with the annual report and agree the budget suggested by the board of managers of the company.

Foreign-owned limited liability company in Indonesia

Starting a company in Indonesia as an entrepreneur from overseas can be made through a foreign-owned limited liability company which can be entirely or partially owned by foreigners, considering the provisions of the Foreign Capital Investment Law in the country. At least two stockholders, a resident manager and a representative or a commissioner are necessary when registering a foreign-owned LLC in Indonesia. One should know that in cases where the ownership is entirely foreign, the stockholder must sell a share of at least 5% to a legal entity or to a citizen of Indonesia within 15 years of the established activities in the country. Even more, a foreign-owned company in Indonesia can set up the activities in varied regions, taking into consideration that particular licenses are necessary.

Nominee LLCs in Indonesia

Another form of business available for foreign business persons or companies is the nominee LLC. This entity can be set up in a fast manner if special contracts or businesses must be rapidly issued. A nominee LLC in Indonesia can help entrepreneurs purchase real estate properties. When drafting the documents for such business form, you can rely on the complete support offered by our specialists in company incorporation in Indonesia.

Representative offices in Indonesia

For market research, promotional services, or for trading activities on behalf of a parent company, a representative office can be chosen. This is how foreign companies can register their presence on the market in Indonesia, without having to set up one of the entities mentioned above. Additionally, because branches are not allowed in Indonesia, one can focus on establishing a representative office.

For a better understanding of the requirements regarding the types of companies available in Indonesia, we recommend you get in touch with our team of company formation agents in Indonesia.


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