Why should you look forward to the formation of company in Indonesia? The answer is easy- it is one of the biggest economies in the world, with a high purchasing power, and the market isn’t already congested. There is space for both established ventures and companies that are still growing.
In this article, we look at some reasons why you should form a company in Indonesia.
Free Trade Agreements
Indonesia is a member of the Association of Southeast Asian Nations (ASEAN). This gives you access to a large market with more than 650 million inhabitants. Furthermore, you are allowed to trade with other ASEAN countries with minimal or zero tax.
With Indonesia being an ASEAN country, your business can easily export items to, and import from Thailand, Singapore, Malaysia, the Philippines, Vietnam, Myanmar, Cambodia, Laos, and Brunei. These countries have a combined GDP of US$2.92 trillion, meaning you will never run out of buyers.
Along with ASEAN countries, Indonesia also has trade relationships with India, China, Japan, South Korea, Australia and New Zealand. All these countries are some of the biggest economies in the world, so Indonesia definitely is a country to look for if your company wants to import or export.
For starters, 100% foreign ownership is available in Indonesia. However, the process can be a little confusing. On the other hand, you can also make your company partially foreign-owned.
In Indonesia, foreign ownership isn’t only limited to businesses. Foreign investors can also own land in Indonesia. Since 2015, foreigners have been able to legally own land in the country to build, cultivate, and to use. Along with land, foreign entrepreneurs can buy houses and apartments in Indonesia. If that’s not the end of good news, you can even invest in real estate.
However, for all these, you need to have a local or foreign-owned company. A valid work and stay permit (KITAS) can also give you access to these benefits.
Indonesia used to be underdeveloped, but the country has made rapid progress, which is very impressive, to say the least. It is the world’s fourth most populous nation and categorizing the purchasing power parity, the country is the world’s 10th largest economy. The country is still progressing, with the government keen on making facilities and innovations more accessible to the locals, and thus, welcoming more FDIs.
Indonesia had its share of large poverty, which was 24.2% in 1998, which has already fallen down to less than 9.66% now. Furthermore, the country has one of the fastest-growing middle class, and several pieces of research show that 90 million Indonesians will join the ‘consumer class’ by the year 2030. The literacy rate is an impressive 93.66%, and the median age in Indonesia is 28.3 years. It basically means you will have plenty of youth workforce.
How to Register a Company in Indonesia?
If you saw the above reasons and think it could be beneficial for your business to get registered in Indonesia, then the first thing you need to do is contact a good registration service provider. It is necessary as a foreigner, and the registration services help you with every complexity. These include registering a company, registering for taxes, choosing a business entity, and even to register company name.