Business in Indonesia

Managing Partner of the Law Consulting Group "Yaremchuk and partners," Alеnа Yaremchuk visited in April Bally, which has established business cooperation with local real estate companies and law firms.

In connection with the situation in the country, many think about vacation or business in the other countries .Our company provides services to help organize the event in Bali, rental property, the opening of business.

Corporate law in Indonesia based on the old Commercial Code of the Netherlands from 1847. Despite the fact that the Netherlands itself was made by a significant number of amendments and additions to the law (especially in relation to limited liability companies), very few amendments were made to the Indonesian company laws to date.

In Indonesia, the possible establishment of enterprises of different organizational and legal forms, of which the potential foreign investor interest may attract a private company with limited liability (Perseroan Terbatas) and limited liability society (Koperasi). This is the most common form of Indonesian companies, which is available the whole range of trade and industry in Indonesia.

For the beginning of its operations in Indonesia, foreigners must obtain permission for the establishment of enterprises with foreign investments Penanaman Modal Asing (PMA) to the Council on the coordination of capital investment in Indonesia - Capital Investment Co-ordinating Board (BKPM).

By definition, an enterprise with foreign investment (PMA) in Indonesia - is a mixed company in which not less than 5% of residents of Indonesia, or - a company with 100% foreign capital.

In both cases, the enterprise with foreign investment shall, within 15 years from the start of operations to transfer part of its shares to residents of Indonesia, which is reflected in the establishment of the enterprise.

Legislation Indonesia insists that enterprises with foreign investments will be focused mainly on the local market, and although almost all activities in Indonesia are open to foreign investors, there are some activities, investments in which are in the so-called negative sheet for the foreign investor.

To establish a company or cooperative in Indonesia need a minimum of two persons.

Capital can be expressed in convertible foreign currency, and the Indonesian rupiah (US $ 1 is approximately IDR 10,000). Although the legislation does not require the existence of a company or cooperative minimum or maximum capital, however, 25% of the capital must be paid at the time of establishment.

The company and the cooperative is not free to transfer its shares and does not offer them to third parties without the approval of the majority of participants of the enterprise.

company and cooperative managed by the Board of Directors.

The company and society are required to obtain a license for business in the Ministry of Indonesia, to which the activities of the company.

Foreign investors may decide to open a representative office (RO) for the provision of information and other support for the head of a foreign company (commercialize missions in Indonesia is prohibited) or the establishment of a joint venture, called Venture Capital Company which aims to holding activities. Representation is not an independent legal entity in Indonesia. The joint venture - is an independent legal entity in Indonesia and may be created either in the form of a company or cooperative.

All companies with foreign participation of Indonesia should report annually on the status of compliance of the company with foreign investment, and in particular:

  • audited financial report by independent certified public accountants of Indonesia;

 

  • minutes of meetings of shareholders to increase, decrease, or movement of capital, if any;

 

  • minutes of meetings of shareholders, which was carried out the distribution of dividends, as well as payment of taxes payable;

 

  • notice of the transfer of dividends.

The procedure of registration of the enterprise in Indonesia takes up to two months.

In Indonesia, there are a variety of taxes levied on different levels, but in general we can say that a single rate of corporate income tax ranges from 10% in the amount of net profit to US $ 5000 and 30% - on income in excess of US $ 10,000.

All operations on the trading of securities holding companies are subject to tax at a rate of 0.1% on sales volume.

Value added tax is an average of 10%.

Dividends, interest and royalties paid to foreign parties, are taxed at a flat rate - 20%.

Export taxes in Indonesia does not exist.

Indonesia has signed agreements on avoiding double taxation with countries such as:

Australia, Austria, Belgium, Bulgaria, United Kingdom, Hungary, Germany, Denmark, India, Jordan, Italy, Canada, Kuwait, Luxembourg, Mauritius, Malaysia, Netherlands, New Zealand, Norway, Pakistan, Poland, Seychelles, Singapore, Syria, USA, Thailand, Taiwan, Tunisia, Uzbekistan, Ukraine, Philippines, Finland, France, Czech Republic, Switzerland, Sweden, Sri Lanka, South Africa, South Korea, Japan

We also want to point out a few very interesting places that we visited in person.

If you want to get acquainted with the local art or organize a big festival, you definitely need to visit the ARMA http://www.armabali.com

If you are not a big group of 20-30 people and you want to spend the Retreat, it is of the best built Rebecca, Kundalini yoga master. Very good room for yoga in the woods. Rice fields that surround the center created a wonderful atmosphere.

http://www.chakrama.com/

If they have questions, always willing to help. Call Viber +34 636 410 611

News
09.11.2017

09.11.2017

09.11.2017