Setting up a Sole Proprietorship / Usaha Dagang

[DonDonMonDon]

Hello everyone,
I am planning to setup a Sole Proprietorship / UD type of company in Indonesia. Does anyone know what is the procedure and how long it takes?
I am Indonesian born citizen.
I was being told there are some company that provide this type of service. What do you guys reckon about asking other people to do this type of service?

Please don't bash me for not using the Search button, I did but I would also like to hear if there's any recommendation.

Thanks and have a good day

 

[dafluff]

Setting up UD is incredibly simple. Any notary should be able to help you out. In Bali a notary will charge about Rp 5jt, which in this case included making NPWP. They do need to see a domisili perusahaan (where your company will be located, simply a letter from your local Kelurahan), and KTP, possibly some other documents and also you need to make a company stamp.

 

[DonDonMonDon]

simply a letter from your local Keluraha

Thanks a lot for the reply Mod!
This is the stuff that confuses me which I will call the Notary tomorrow to find out more.
How do you retrieve the letter? Is it some kind of Forms?
I was researching and read that UD require some kind of letter from RT/RW however, what is the template looks like or whether it is certain form that need them to fill.
Very confusing.

 

[dafluff]

Thanks a lot for the reply Mod!
This is the stuff that confuses me which I will call the Notary tomorrow to find out more.
How do you retrieve the letter? Is it some kind of Forms?
I was researching and read that UD require some kind of letter from RT/RW however, what is the template looks like or whether it is certain form that need them to fill.
Very confusing.

Yes, that's the one. You will need to go to RT/RW first, then to Kelurahan. Here is our article on Surat Domisili:

https://www.expatindo.org/surat-domisili/

It's for individuals, but for companies it is basically the same process. The RT/RW will want to know where in his area you're starting the business, and you can back it up with a rental copy or land title, if you own the place.

 

[DonDonMonDon]

Thank you so very much for your help.
So basically the "Surat Permohonan" will be the same format as well?

Thanks!

Edit: Btw, I believe we can register NPWP online right now, what do you think of it?

Last but not least, have you ever used https://www.online-pajak.com/id ?

Thanks

 

[dafluff]

Thank you so very much for your help.
So basically the "Surat Permohonan" will be the same format as well?

Thanks!

Edit: Btw, I believe we can register NPWP online right now, what do you think of it?

Last but not least, have you ever used https://www.online-pajak.com/id ?

Thanks

Yes, surat permohonan is one of those things that you will have to write over and over in Indonesia.....

Can do NPWP online, and in fact NPWP can no longer be delegated, you have to do it yourself.

 

[DonDonMonDon]

Thanks a lot for the response.
May I know how long do I have to wait to receive the Letter ? From your experience?

Thanks

 

[Rix]

Is it possible to have a UD in your own name with a spouse sponsored KITAS/KITAP ? I read that with a spouse sponsored KITA/KITAP we are allowed to work and/or do business in Indonesia to support ourselves and our family. If you work as a consultant accordingly do you need to register your activities and get a SIUP for it with an UD, or is there a different way ? I already have an NPWP in my own name.

Does anyone have experience with this ?

Thanks

 

[dafluff]

Is it possible to have a UD in your own name with a spouse sponsored KITAS/KITAP ? I read that with a spouse sponsored KITA/KITAP we are allowed to work and/or do business in Indonesia to support ourselves and our family. If you work as a consultant accordingly do you need to register your activities and get a SIUP for it with an UD, or is there a different way ? I already have an NPWP in my own name.

Does anyone have experience with this ?

Thanks

not possible for foreign spouse. But Indonesian spouse can do it.

 

[Rix]

not possible for foreign spouse. But Indonesian spouse can do it.

why not ? where is it written pls ?

 

[dafluff]

why not ? where is it written pls ?

The issue is with UU no 25 2007 or known as the Investment Law (UU Penanaman Modal).

Article 1 stipulates that "foreign investment" is any investment to conduct business within Indonesia by a "foreign investor".

Penanaman modal asing adalah kegiatan menanam modal untuk melakukan usaha di wilayah negara Republik Indonesia yang dilakukan oleh penanam modal asing...

and that a "foreign investor" includes foreign individuals, foreign businesses and foreign governments who invest capital within Indonesia.

Penanam modal asing adalah perseorangan warga negara asing, badan usaha asing, dan/atau pemerintah asing yang melakukan penanaman modal di wilayah negara Republik Indonesia.

Then article 5 says that all "foreign investment" has to be in the form of a PT.

Penanaman modal asing wajib dalam bentuk perseroan terbatas berdasarkan hukum Indonesia dan berkedudukan di dalam wilayah negara Republik Indonesia...

It does not make a distinction between WNA who hold KITAS or KITAP or whether those are spousal sponsored or not.

 

[atlantis]

I am planning to setup a Sole Proprietorship / UD type of company in Indonesia. Does anyone know what is the procedure and how long it takes?

We (read: Ms Atlantis) have three form of companies, a PT, a CV and an UD. None have been very complicate to create. If I remember well it took for the UD a phone call to a notaris, fifteen minutes to drop documents such as NPWP and KTP and the usual chitchat with the notaris, Rp 1.500.000 for the akta and Rp 250.000 for the pendaftaran in the District Court an a couple of weeks or so waiting for the call back from the Notaris to hand over the documents.

 

[waarmstrong]

I appreciate the corporate "We."

 

[Davita]

I appreciate the corporate "We."

I was thinking Atlantis was indicating he meant more in terms of the royal 'WE'.........

https://en.wikipedia.org/wiki/Royal_we

 

[waarmstrong]

Yes, I can understand the royal we for the UK, but we have not been so disposed across the pond for quite some time.

 

[Davita]

Yes, I can understand the royal we for the UK, but we have not been so disposed across the pond for quite some time.

The royal WE isn't endemic to UK......wiki.......The earliest use of this poetic device is somewhere in the 4th century AD, during the Byzintine period. Therefore, none of the authors of the books of the Bible understood the unusual grammar as a "royal we".

you must come from a newer country.....

 

[atlantis]

We (read: Ms Atlantis) have three form of companies, a PT, a CV and an UD. None have been very complicate to create. If I remember well it took for the UD a phone call to a notaris, fifteen minutes to drop documents such as NPWP and KTP and the usual chitchat with the notaris, Rp 1.500.000 for the akta and Rp 250.000 for the pendaftaran in the District Court an a couple of weeks or so waiting for the call back from the Notaris to hand over the documents.

Depending on your activities, you don't even need an akta to be established by a Notaris nor you need to have a SIUP issued for an UD. It's the lightest form of company when it comes to documents. Your decision to get a SIUP or not mainly depends on your activities and type of clients.