Company Establishment
Company Establishment in Indonesia is not mainly regarding Local Company (PT PMDN) or Foreign Company (PT PMA). It involves, in larger scope, Representative Offices and other types of business entities, each subject to different regulations that need to be adhered to, specifically for incorporating a company in Indonesia.
Company Set-Up (Foreign & Local)
To establish a company in Indonesia, the most common legal entity type is of limited liability company. As recognized in Indonesia, Foreign company (or commonly known as PT PMA) is acknowledged when a Company consists of at least 1 (one) foreign shareholder; it can be of individual or foreign legal/business entity. Further, Local Company (PT PMDN) in Indonesia is set up by individual(s) or company (-ies) of Indonesian nationality or domestic parties. As also regulated, different types of industry has its own certain regulations to be followed/complied.
Representative Office - Trading & Other Activities
A Representative Office in Indonesia is for foreign company to have a presence in the market of Indonesia. A representative office is not allowed to do business and commercial activities. The purpose of opening an RO in Indonesia is to do market research, marketing and promotional activities. Establishing a Representative Office is to help foreign company understands the market prior to starting the business directly in the country.
Representative Office - Construction
In Indonesia refers to a Foreign Construction Service Business Entity or commonly known as BUJKA. These entities are crucial players in the construction industry, responsible for providing construction services such as building, infrastructure development, and related projects. To operate legally, they must be registered and licensed by the relevant authorities in Indonesia, ensuring compliance with regulations and standards in the construction sector.
Merger & Acquisition
The process to run business may vary and it s commonly known to have a company under Merger & Acquisition scheme. As the Indonesian market is a very dynamic field, many foreign investors involve its local partners through merger and acquisiton. Further, it is also considered less hassle to acquire a company that suits your business agenda bearing in mind that a due diligence process is needed before engaging with the operations.
Corporate Dissolution
Choosing to perform liquidation or dissolving a business might be worrying for certain entities. Andalan Consulting offer the service to ensure that any kind of business/legal entities to be dissolved is following the regulations and in accordance with the tax and human resources compliance. It is important to note that a dissolution is considered completed once the legal status for the business/legal entities have completely approved by the Ministry of Law and Human Rights of Indonesia.