Holding Company in Indonesia

Updated on Wednesday 05th January 2022

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Indonesia is a very open country to foreign enterprisers which has transformed it into one of the most sought investment destinations in Southeast Asia. At the moment, Indonesia is the largest economy in its region and those interested in setting up a business in Indonesia can choose between various industries and type of companies.

The wholly-foreign owned company is one of the most appreciated types of structures used by foreign investors in Indonesia because it also allows for the establishment of holding companies. Our Indonesia company incorporation consultants can offer information on the legal requirements related to starting a holding company here.

Particularities of the holding company in Indonesia

All over the world, the holding company allows a foreign or local investor to pool various assets under the entity which will have total control over them. The same principle applies to holding companies in Indonesia, however, foreign enterprisers interested in setting up holding companies here must know that certain restrictions apply. The list with industries totally or partially restricted to foreign investments is published periodically by the Capital Investment Co­ordinating Board.

Foreigners who want to set up holding companies are advised to verify with our Indonesian company formation agents what these restrictions are. There are no mandatory conditions to immigrate to Indonesia in order to be able to register this business type.

Registering a holding company in Indonesia

The holding company will be registered as any other company in Indonesia. The investor must first choose the type of structure which best complements the activities of the future holding company. Most foreign entrepreneurs choose the limited liability company with foreign ownership. This type of entity is subject to special requirements, among which an investment plan which must be submitted for approval with the Investment Co­ordinating Board and a minimum share capital which will be injected in the project. Our company registration advisors can assist with the incorporation of the Indonesian holding company.

Among the advantages of opening a holding company in Indonesia, we mention the accounting and reporting requirements which are minimum, and the tax credit offered when remitting dividends to non-resident shareholders.

Please watch our video on holding companies in Indonesia:

For more information on the benefits of the holding company or assistance in setting one up, please contact us. You can also reach out to us if you are interested in issues concerning the process to immigrate to Indonesia.