Business registration may appear highly complicated, but it is very simple to get handle on a few things if you know its regulations as well as have qualified help. We will categorize this process to register the business in Indonesia in three steps:
- Getting Deed of Establishment,
- Company tax ID
- Business Registration Number.
The process is quite similar for both the local and the foreign companies, although requirements are very different. Here is what you will have to do for business registration Indonesia.
Getting Deed of Establishment
To propose company name
Firstly, Indonesian regulations state official company names must consist of three different words. Remember that the official name is just for the legal purposes so you will have other distinct name for the brand and product. The business entities of Indonesia, known as the separate entities, don’t allow mixing up the transactions that are related to business with its owners and other businesses.
The transactions linked with business should be separately recorded, and performance in the terms of profitability as well as cash flow should be independently measured too. Doing so needs separate accounting records that exclude assets as well as liabilities of the individuals and other companies that you will get at market entry services Philippines.
Main benefit to run business entities here lies in simplicity of the establishment. The Establishment Deed signed at the notary or legalized by the Local District Court will be enough, and no legal processes are needed for this needed.
Limited Liability Partnership
CV or Commanditaire Vennootschap, is the partnership established by Indonesian citizens that includes sleeping and active partners.
Kinds of the Business Partners
Sleeping partners, known as the silent, limited and passive partners, investing operation of company and don’t interfere in management and business activities. The profit is highly limited depending on capital that they offer and losses. Overall, they have very less exposure to the liability.
Called as the general partners, such individuals act as the leaders as well as take complete responsibility for the company’s liabilities & assets. They will run company, have total control over operations, management, use of the capital in company and they have right to agree as well as participate in the business activities with the third parties.
Features of CV
- Large capital with many partners
- Ease of establishment
- Higher credibility
- Chance of expansion
- Simple to get the loan
- Survival of the CV is not certain
- Possibly unjust liability among the partners
- Tough to withdraw deposited capital
How to start
Registration process has now gotten more accessible. But, it still will be overwhelming for the people who are not familiar with this system; and not to mention lack of the ground support.