Transnational transaction around the globe has force many of the business players to establish a strong legal entity in order to build their business power. This entity may in the form of company or limited liability Company, foundation, BV, PT, CV, Legal Firm, organization, LLC, and others. This variation of form shall require a legal base line for many shareholders and or business player in order to enter the market. In Indonesia, every entrepreneur require them self to abide by the prevailing laws which commonly known as the Company Law or Act No 40 of 2007. In Indonesia, the core of law that regulates the establishment of the Company are Law No. 25 of 2007 regarding Capital Investment (hereinafter referred to as “Investment Law”), and Law No. 40 of 2007 regarding Limited Liability Company (hereinafter referred to as “Company Law”).
Under the Company Law, every single person or legal entity who wish to build them self a legal company or corporation, they shall require to follow the requirements of 2 (two) shareholders at minimum. This means, that there will be 2 people or legal entity which act as the shareholders or owners. The capital injection which needs to be provided by the shareholders minimally shall be Rp. 50.000.000 (fifty million Rupiah). However this capital injection requirement does not apply should the shareholders wishes to build and established the Foreign Direct Investment Company or PMA/FDI (which in this matter considered as the foreign national legal entity, this due to foreign shareholders who reside under the company establishment).
According to the Indonesia Investment Coordinating Board (Badan Koordinasi Penanaman Modal) any legal entity and or person who wish to build and established PMA/FDI shall require a minimum at around of $ 250.000 (two hundred fifty thousand United States Dollar). For most foreign entrepreneur, this capital injection is considered very high and creates obstacles for investment. Therefore, in order to simplify the process and bridging between the foreign investment action and the government, AM | Oktarina Lawyers has the ability to execute the most probable process for this type of foreign national licensing.
For more detail, please contact our lawyer.
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