If you’re a foreigner trying to set up a business in Indonesia, you have a few choices. All of them have their pros and cons, but what ties them is the fact they take a lot of time.
Granted, the country rose 19 places when it comes to ease of doing business. However, more work needs to be done. While the government is shaping policies and regulations to make everything as simple and as convenient for you, know you have another choice.
For a faster way of setting up a business in Indonesia, consider a shelf company.
WHAT IS A SHELF COMPANY?
A shelf company is a legal corporate entity that is fully registered in Indonesia, but unlike other businesses in the country, it doesn’t have any activity. It means it doesn’t have people, profits, products or services, or anything that gives you a hint there is an ongoing operation.
So why is there in the first place? The basic reason is to allow the company to age – hence, it’s sometimes called an aged company.
The concept of shelf companies is nothing new, but for many years, the idea seems to be associated with something seedy. It’s completely understandable as these firms become a good way for the richest people to conceal their assets. They set up these companies in tax havens and move their investments in these places to avoid heavy taxation.
But please, know that using and even buying a shelf company is completely legal in Indonesia. Cekindo is here to make it easy and trouble-free for you.
THE ADVANTAGES OF BUYING INDONESIAN SHELF COMPANIES FOR SALE
Perhaps you’re asking, “Why can’t I just set up a company in Indonesia instead of buying a shelf company?” Let us enumerate the best reasons:
In Indonesia, it takes a few weeks to set up a business. It doesn’t include the time you need to decide what kind of corporate entity you want to have. With a shelf company, you can significantly reduce the waiting time by as short as 1 week. This is because the company is already registered, and Cekindo ensures its registration remains active.
The whole process gets even faster if you purchase a shelf company in Indonesia online.
Although Indonesia has eased some of its restrictions when it comes to business ownership, there are still some serious limitations. For example, you cannot own a company directly in the country. So one of the shortcuts many foreigners make is to look for a special purpose vehicle.
A special purpose vehicle is the face and name of the business. He or she is the one whose name appears in the company registration, but it’s under the assumption the authority, and the control relies on the actual owner, who is the foreigner.
But this is where the setup becomes dangerous. It’s not unusual for the pointed Indonesian partners or the special purpose vehicles to take over the business completely. And since this type of setup, normally without the appropriate contracts and other legal documents, is considered illegal in the country, many foreigners do not have any recourse. Imagine the investments you can lose.
Shelf companies, on the other hand, are a much safer choice. Since this doesn’t have any activity, it doesn’t have a board of directors. They have only one owner, and that is us.
Note: Our shelf companies are local PT, which means an Indonesian owns the business. You need to convert this to PT PMA, which allows you to be a major stakeholder of the business. This way, you will have the full control over your investment. Cekindo will help you during the process of transfer.
3. Lesser Capital
Setting up a business in Indonesia, as well as anywhere else in the world, is costly. Making it more expensive is the fact the company registration process is lengthy. The more time you wait, the more costs you accumulate and the more opportunities to recoup you miss.
4. Better Reputation for the Business
In Indonesia, reputation is everything, especially when it comes to business. That’s why they spend a lot of time building relationships with their partners, investors, and customers. Your brand is your responsibility, but a shelf company can help increase your reputation on the get go. As an aged business, a shelf company gives the appearance of longevity.
Simply put, seriously consider a shelf company when:
· There’s already a market waiting for you, and you can’t miss the opportunity.
· You want to skip the often-long and confusing company registration process in Indonesia.
· You are looking for a more reliable way of setting up a business in Indonesia.
· You don’t have a huge budget to open a business, so you want to control your expenses.
HOW TO BUY AN INDONESIAN SHELF COMPANY
The process is straightforward and simple, which makes it even more convenient for foreigners. If you’re interested in buying a shelf company with Cekindo, you just need to follow these steps:
1. Contact our business consultant.
Please call us at +622 180 660 900. You may also email us at [email protected] or send us your questions on this page. Rest assured our team is always ready to assist you. For non-call options, we will send the information you need within 24 hours.
2. Choose from the list of shelf companies for sale.
You can view some of the details here, but we will send you the complete list of Indonesian shelf companies for sale. Each of them will have all the details you require to make a thorough decision. If you’re still unsure, contact us and our business consultants and the legal team will answer all your questions. We can also help you in the process of choosing.
Note: As registered businesses, these companies already have a name. You cannot change them unless you want to form your PT company. Many new investors who bought shelf companies in Indonesia prefer to retain the names.
3. Buy the shelf company.
Once you’ve already chosen the company you wish to buy, inform us and we will facilitate the purchase process, or purchase a shelf company online.
4. Get the full control of the company.
This is the most important part. We will turn over all the business details you need so you can now have full control over it. These include the following:
· Internet banking details
· Corporate bank account
· Tax number and identification
· Company registration documents
· Company office address
To buy a shelf company for sale in Indonesia doesn’t get any swifter and easier with Cekindo. It’s convenient and reliable, and you can have a business ready in a week! Get in touch with us today to learn more about shelf companies and buy one.