Indonesia is the 4th largest country in terms of population and comes at 16th by nominal GDP which shares the borders with the major developing economic countries like India(Island), Vietnam, Malaysia, Philippines, Singapore.
With 64% of the internet penetration rate and more than $25 billion of E-commerce revenue, Indonesia is becoming the choice for investing which can easily be done if one gets Offshore company incorporated in Indonesia.
In this article, we will let you know about the types of company with cost & time | tax rate | documents needed to get the offshore company registered with the bank account in Indonesia.
What are the types of companies in Indonesia?
1- PT. PMA
This is completely foreign-owned but demands a good amount of investment in Indonesia.
Cost – IDR 10.000.000.000 with 25% as a paid-up capital(1-2 million USD) and $3500 would be the setup fee.
Time: 4- 6 weeks
2- PT
This can also be referred to as a local owned company with a small investment and for this one shareholder has to be from Indonesia.
Cost – IDR 50 million to IDR 10 billion as a paid-up capital (3,700 USD to 38,000 USD) and $2000 would be the setup fee.
Time: 4- 6 weeks
3- KPPA
In this type of company, one needs to set up a representative office in Indonesia to research and get to know the market in a better way.
Cost: Doesn’t need a paid-up capital and $2500 would be the setup fee.
Time: 2- 4 weeks
Tax in Indonesia:
Controlled by the Directorate General of Taxes, Indonesia’s has a minimum or we can say one of the lowest corporate tax rates around the world with other value-added taxes.
It is also based upon the total income generated along with the type of the company.
Tax rates
- Standard corporate income tax is imposed at a rate of 25%
- The public company imposed a tax rate of 20%
- Standard Value added tax in Indonesia has a rate of 10%
- Small companies get to benefit from 50% of the standard corporate tax if having a threshold set by the government.
- Companies get benefit from a tax rate of 1% if having a threshold set by the government.
Things needed to set up an Offshore company in Indonesia:
- Investment Plan
- Share capital which needs to be deposit with the local bank
- 1 shareholder, 1 director or commissioner
- Local address
- KYC documents
How to open a company bank account in Indonesia?
Important documents required to open up the bank account are mentioned below:
- Tax ID number of the company
- Local address proof
- Certificate of Incorporation
- Shareholders KYC documents
- Approval documents from the ministry of law
- Initial deposit