Legal establishment business plan

Legislative Texts [ Arabic ]: For latest legislations and laws Arabic — English 2. Conclusion of Treaties and Agreements Article 47 points out that The Supreme Council of the Union shall exercise Ratification of treaties and international agreements, and such ratification shall be accomplished by decree. When article 60 adds that The Council of Ministers shall be responsible for supervising the execution of international agreements concluded by the Union.

The intricacies of setting legal establishment business plan a company and making an investment in Indonesia are many. This article will serve as but a brief introduction to the topic.

Setting up Business Activities and a Company in Indonesia To establish a business in Indonesia, if you do not require a local legal entity for the investment proposed, you could choose to appoint an Agent or Distributor, or set up a Representative Office.

Register the Business

Many foreign investors at the early stage of entering the Indonesia market choose to set up an Agency Agreement or Representative Office, then later after the business starts to grow they will apply for a Foreign Direct Investment Company FDI status.

Representative Office A Representative Office can be established depending upon the line of business and the necessary licenses issued by the related government department. The limitation of a Representative Office is that they are not allowed to conduct direct sales and cannot issue Bills of Lading.

Representative offices are set up primarily for marketing, market research, or as buying or selling agents. The related government ministries are: As a legal basis, the law is fairly accommodative to various deregulatory policies and measures to date, and those that will be taken by the government in the foreseeable future.

In addition to Investment Law No. It was seen as a very significant step toward a much more conducive and attractive investment environment in Indonesia. Some highlights of the new regulation: The amount of capital to be invested in a foreign-owned company is decided by the investing parties themselves, and the BKPM approval is based on the economics and scale of the project.

Foreign investment companies are basically free to choose where in Indonesia they will set up operations, with the proviso that factories must be in areas zoned for industry or in an industrial estate.

The process of incorporation of a new foreign direct investment company: License will be valid for 3 years Step 1: Because the process must be done through a computerized processing system, the reservation and clearance must be done by a notary public because the new computerized system for non-tax state revenue payments may be accessed only by a notary public.

The reserved name will be blocked for 60 days. If the founding shareholders are confident that the same name has not been used by another Indonesian company, this procedure is not necessary. Under Article 16 of Law No.

The Ministry of Law and Human Rights may reject a name application reservation if the requested name is, among others, the same as or resembles the name of other companies. Prepare and send the application with required documentation, compiled according to the investment plan production chart for industry or description of the activity for services and the planned use of business capital.

Set up a joint venture agreement if you are making the investment with Indonesian partners. For a consulting services company you are required make a presentation to the leadership of BKPM before applying for a Principle License. Total investment value greater than Rp 10,, ten billion rupiah or its equivalent value in US dollars, excluding land and buildings; Equity and paid up of shares equal to the value of paid-up capital of at least Rp 2.

Obtain the Principle License Izin Prinsipvalid a maximum of three 3 years from the date of issuance of the principle license, except for certain sectors which require a longer project completion time and may be given an extension in accordance with an applicable period prior to giving permission.

This social security program covers occupational accident security, death security, old age security, and health maintenance. Fixed Operating License IUT for 30 years is issued A Limited Liability company is established either under foreign shareholders or through a joint venture with Indonesians or wholly owned by Indonesian shareholders and must be approved by the Ministry of Justice.

Setting up Business Activities and a Company in Indonesia

It is compulsory to report taxes on a monthly basis and follow Indonesian labor law. As you can see from this very brief introduction, the process is a complicated and lengthy one and can be a virtual mine field for those who are unfamiliar with dealing with Indonesian ministries.

Because of this, many foreign companies choose to acquire the advisory services of a professional investment consultant which specializes in assisting foreign companies who want to establish businesses in Indonesia.

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Sometimes referred to as Products and initiativeblog.com is where you tell investors about your hours and how many employees you plan to hire. It's also where you explain the benefits of your establishment for customers, such as its convenient downtown location, or its close proximity to the local interstate initiativeblog.com is also a good place to mention any close ties you have to.

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To qualify for this incentive, a business establishment must be either a "basic industry" as defined in the Act (which generally means manufacturing), central administrative offices, or one of certain other types of specified business establishments.