Company registration in Indonesia

Company registration in Indonesia
Indonesia

Indonesia is a member of the World Trade Organization (WTO), which ensures the reliable opening of business in Indonesia. This is the 7th country in the world in terms of steady GDP growth, the largest country in Southeast Asia and the largest island nation in the world. Indonesia is located at the equator, washed by the Pacific and Indian Oceans. In the state goes the Indonesian rupee (0.000063 euros). Mostly legal norms in the republic comply with European standards, a local law regulates the right to a land ownership. It is reasonable to open a company in food industries in Indonesia, the production of fuels and lubricants, in the service sector.

The government welcomes investor initiatives to register a company in Indonesia in the areas of healthcare, transport and communications, banking, trade, tourism, energy.

You can open a company in Indonesia in the agricultural sector to supply unique products, for example, export of sweet potatoes, a saga, a rubber. Sales of Indonesian coconut and palm oil (1st place in the world), cane sugar, cocoa, coffee, tobacco, tea, cloves and pepper are also high-turnover. Indonesia is rich in fish and seafood. Widely developed pearl production.

Since 2018, to open an enterprise in Indonesia is subject to automatic exchange of the information according to the CRS standard as a party to the MCAA Convention, that is, the company is financially accountable.

A corporate income tax

25%

VAT

10%

Income tax rates (WHT) according to the World Tax Report (WWTS):

  • on dividends;
  • interest;
  • royalties for territories;

For residents:

15%

15%

15%

For non-residents:

20%

20%

20%

Interest income on contracts paid by residents of Ukraine to non-residents of Indonesia:

  • on dividends of individuals and legal entities;
  • on dividends of companies;
  • interest;
  • royalties;

15%

10%*

10(for government loans - 0%)

10%

VAT tax return period

quarterly reports

Expected turnover date

until the 15th day of the next month

Deadline for last VAT payment

any time before filing a CIT refund

* If a company owns at least a quarter of the authorized capital and receives income in dividends (unless otherwise specified by the agreement). A 5% rate applies, if an Indonesian company owns at least 1/5 of the charter capital of a Ukrainian company.

Useful information for more profitable registration of commercial company in Indonesia. In Indonesia the CFC rule applies. In order to evade the declaration and payment of high taxes, imposed on you, as a controlling person, transfer the formal right of ownership to the fund managers and trustees of the trust. With this scheme, it will be possible to maintain a fairly high control over the firm and profit, avoid CFC. In Ukraine CFCs are not yet applied.

Read also:

TO ESTABLISH A PRIVATE COMPANY IN INDONESIA, WE RECOMMEND YOU TO INCREASE SECURITY:

  • Install applications to encrypt data on the devices you use;
  • Use an anonymous operating system;
  • Set up a secure mail service;
  • To receive bank documentation, don’t use a home mail;
  • Do not appoint yourself or your relative to the post of company director’

To register a company in Indonesia quickly, without errors, ask YB Case experts for advice on opening a business in Asia. Our phones are listed on the website in the "Contact Us" section. We are also ready to provide advice on opening a bank account in Indonesia, and support in registering a company in Indonesia remotely.

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