When talking about Company Registration In Indonesia, setting up a company in the form of a Limited Liability Company is preferable. This type of company is owned completely by the foreigners, as in 100% of it.
However, the percentage depends on the type of business as specified by Negative Investment List, a regulation set up by the government to determine how much of the company belongs to the foreigners. Consult the list to make sure you get the right information before running a company in Indonesia. The company in question can also be owned by at least two shareholders, either individuals or companies.
To be able to get a Company Registration In Indonesiaunder this type, you need to have at least a 1 million USD worth of investment plan. This falls along the line of what is regulated by the Indonesian Investment Coordination Board. As much as 25% of this 1 million USD (roughly 10 billion IDR) investment plan will go down to capital.
Your foreign company will not be eligible for a bank account as long as this process is still on progress. Hence, a notary letter statement is required, stating that the amount of investment will be wired the moment incorporation process completes.
The new law of Company Registration In Indonesia, however, states that new foreign companies in Indonesia have to undergo financial audit prior to being eligible for application for a business license that is permanent.
This also applies for other kinds of licenses such as import license. The purpose of this new regulation puts emphasis on encouraging those foreign companies to truly realize their investment plan instead of merely submitting the plan to the coordinating board only for the sake of being granted permits to run businesses on Indonesian soil—which was an oft-occurring case in the past.