Alternatives to nominee companies in Indonesia
Mar 20, 2023
2 min read
Nominee company in Indonesia
Nominee company service allows you to set up a company in Indonesia under the requirements established for local companies and also to have total control over the company’s assets and earnings through a set of legal agreements.
VIVO ASIA provides a nominee company package using corporate shareholders. It has many advantages, greatest of them are that:
it allows you to sign agreements that comply with Indonesian laws
these agreements hold up at court
minimizes risks compared to using individual nominees
The relations between the nominee shareholder and beneficiaries are commercially governed by a loan agreement where the nominee is purchasing the shares in the company by using a loan provided by the beneficiary.
Since the shares are purchased through a loan, they are pledged back to the beneficiaries for total control.
This gives you peace of mind that you can run a business in a restricted sector without breaking any laws and also have a local partner you can trust and who is governed by the signed agreements.
Our nominee company service is billed annually and can be extended as long as needed by the investor.
Representative office
As an alternative to incorporation, you can also set up a representative office. Representative offices don’t need to comply with capital nor ownership requirements in contrast to PT PMAs.
However, as representative offices’ purpose is to only represent an overseas company, it cannot earn any revenue in Indonesia.
Differences between a nominee company and a PT PMA
Nominee company
Foreign-owned company (PT PMA)
PT (locally owned)
PMA (foreign-owned)
Rp. 51 million
Rp. 2.5 billion
(~US$ 3,800) in case you hire only local employees
(~US$ 190,000)
Rp. 1 billion (~US$ 75,000) in case you also plan to hire foreign employees
Maximum foreign ownership
No foreign ownership allowed
0-100%, depending on your industry
Legal owner in Articles of Association
VIVO ASIA
based on loan agreement with you
You
Control over assets
Director of the company (can be you)
Director of the company
Change shareholders whenever necessary
Yes
Yes
Also, see our guide on how to register a company in Indonesia for more information about PT PMAs.
Outsourced operations model
Incorporation may not always be the best or also the fastest way to start doing business in Indonesia. For example, if you wish to test the market first. In that case, an outsourced operations model can help you out.
It allows you to provide services, conduct sales and also to earn revenue, etc. without setting up a legal entity in Indonesia.
Some of the services included in our outsourced service model are, for example:
Employer of record
Importer of record
Payroll management
Supplier search
Bringing it all together
For any additional questions regarding nominee companies in Indonesia or setting up a company in Indonesia, contact us via the form below. We will be happy to discuss how we can help your business in Indonesia.
Legal Business Consulting
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Original reference: Vivo Asia Group website ↗
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