Key things you need to know as a foreigner opening a company in Indonesia

A list of basic information a foreign investor should know before opening a company in Indonesia

May 6, 2021

Types of industries open to foreign investment in Indonesia

A company’s foreign ownership limitation is depending on whether its business classification (KBLI) is in the Negative Investment List.

The purpose of the Negative Investment List is to protect certain industries from foreign competition. If a classification is not in the list, it can be owned up to 100% by foreign investors. However, in many cases, foreign ownership is either restricted or in some cases even forbidden.

To find out the foreign ownership restriction for your classification, simply use the tool provided by LionLaunch on our homepage. Type in your classification and see what is the maximum amount of foreign ownership you can have.Shareholder structure in Indonesia

Who can be a shareholder of a company in Indonesia?

Every limited liability company in Indonesia must have at least two shareholders. Both individual and corporate shareholders are allowed.

As you start entering your shareholder data into LionLaunch app, the software will automatically detect whether your shareholding structure meets the requirements based on the business classification you have chosen.

Note that if a corporate shareholder is registered in Indonesia, but has foreign shareholders, it is counted as a foreign shareholder.Directors and commissioners

Corporate structure of a company in Indonesia

A company in Indonesia has three primary governing bodies: the shareholders, the commissioners, and the directors. Every company must have at least one commissioner and one director and both must be private individuals. Commissioners and directors can but don’t have to be also shareholders of the company. A commissioner cannot be a director and vice versa.

Commissioners role is to protect the interest of the shareholders and supervise the directors. Directors are in charge of the daily operations of the company.

LionLaunch’s app allows you to easily choose directors and commissioners from your shareholders with one click or insert additional individuals.

A registered corporate address in Jakarta

A PT PMA company must have a registered address in a building with a correct license for commercial activities. Therefore you are not allowed to use residential addresses for setting up a company.

It’s important to choose your address wisely as it will determine your local municipality. Some districts of Jakarta take significantly longer to issue local licenses than others.

LionLaunch customers get a free commercial address for the first six months. After that you can either continue using our address or change to your own address.

Note that by using LionLaunch address, your company setup time is just five working days. This is possible because our system is integrated with the local districts and therefore can save you weeks of incorporation time.

Ready to proceed? Get started with the company setup in Indonesia here.

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