Offshore in Indonesia – what are the advantages

Indonesia is a group of several thousand volcanic islands located in Southeast Asia. It shares borders with Papua New Guinea, Malaysia and East Timor, and is bounded by the Pacific and Indian Oceans. The Republic has maritime borders with Thailand, Vietnam, the Philippines and Australia.

The taxes are not the same across the territory of this offshore state: if the net profit of the company is more than 5000 dollars, the rate starts from 10%; for 10000 dollars and more it would be from 30%. Howere, the republic does not provide for an export tax contribution.

Also, foreign entrepreneurs are offered two profitable forms of doing business:

• Private Limited Liability Company.
• Limited Liability Partnership.

In order to open any type of company, a special permit must be obtained from the Indonesian Investment Coordinating Board. Also the advantages of offshore firms in the country are the need for at least two persons to register the firm. These people can act as owners and directors at the same time.

The authorized capital of an offshore company in Indonesia is contributed in dollars or Indonesian rupees, 1 dollar equals to 14000 rupees. It is also necessary to contribute 25% of the capital when establishing an enterprise.

Foreign businessmen are required to submit the following reports and protocols:

• protocols on capital change: reduction, increase, movement;
• protocols on distribution of dividends and other payments which are subject to taxation;
• audit of the financial statements by certified public accountants;
• dividend payout communication.

Also, the owners of a company or a partnership may not transfer company shares to third parties and may not freely offer them without the approval of the shareholders.

When establishing an offshore in Indonesia, you must come up with a unique name, prepare a set of documents and contribute capital. Also the average contribution margin of imported goods is higher than in China, the USA or neighboring countries, and stable economic growth up to 8% creates good conditions for business.
Call or write to our managers to order the company's registration!