As the leading economy in Southeast Asia, Indonesia has a profitable and lucrative economic growth rate. The country also offers rising business opportunities for investors.
With that, Indonesia attracts the attention of many foreigners who are planning to set up their businesses. However, setting an Indonesian company is not as easy as it sounds, especially in building its foundations.
Here are some of the challenges foreigners may face in the formation of company in Indonesia.
Many investors consider Indonesia’s policies and regulations to harm business. Indonesia’s rules in doing business are quite strict for foreign companies. Though Indonesia encourages foreign investment, it also sets some rules to ensure that investments provide the local economy with as much value as possible.
Acquiring Work Permits
Foreigners intending to work and live in Indonesia need a valid working permit. Through the Ministry of Manpower and Transmigration (MOMT), the labor law set out conditions for securing a work permit.
Foreign workers have strict work limits set by the Indonesian government. As a result, it is difficult for other countries to bring in human resources.
As a multi-ethnic country, a newcomer must know and respect all the different customs and beliefs. You should also take into account Indonesian cultures and beliefs in your plans to register company Indonesia. Such traditions have a significant influence on the culture and etiquette of Indonesian businesses.
Opening A Business Bank Account As A Foreigner
It is not difficult to open a company’s bank account in Indonesia. But some banks impose different standards and regulations for the request.
What’s The Smartest Way To Deal With These Challenges?
Amidst all this, it is essential to know that Indonesia is an exceptional place to do business. Such challenges shouldn’t stop investors from setting up. Instead, it serves as an outline of things to look forward to.
It is worth partnering with 3E Accounting when you are ready to set up your business in Indonesia. You can open your company’s bank account with the help of our Indonesian Corporate Specialist.
In 3E accounting Indonesia, we’ll help you register a company in Indonesia and get real-time updates of your documents’ status and proposals. We’ll provide easy, online services that meet the industry’s standards, find the best deals, review common trends, and list benefits. Contact us and enjoy our years of expertise in business activities and compliance.