Congratulations on incorporating your company in Indonesia!
Once you have completed the incorporation process, there are several important steps you should take to ensure that your business is fully compliant and ready to operate. Here are some key post-incorporation steps you should consider:
Bank account set up
Open a bank account in the name of your company. This will help separate your personal and business finances, making it easier to manage transactions and comply with tax regulations. Some local banks available in Indonesia you might want to consider are: BCA, Mandiri, CIMB Niaga, Bank Permata, BRI
IMTA and KITAS for expats
If your setting up a PT PMA, then you will definitely need to process IMTA (work permit) and KITAS (stay permit) for the directors or your foreign employees at the Ministry of Manpower and immigration office. This can only be processed after the company is established since the company will be “sponsoring” the expats.
Hire employees
Familiarize yourself with Indonesian labor laws and start hiring employees to keep the business moving. Ensure that you comply with employment requirements, such as minimum wage laws, working hours, employee benefits, and workplace safety standards.
You may also consult and use hiring agencies available in the market such as Glints, Reeracoen, JAC Recruitment, 9cv9 and so on.
BPJS
Register your employees for social security and health insurance programs from the government, such as the Social Security Provider (BPJS Ketenagakerjaan) and the Health Insurance Provider (BPJS Kesehatan). These programs cover employee benefits such as healthcare and social security / retirement.
WLK (Manpower Report)
Set up an account and register your company with the Ministry of Manpower system. The system is designed to monitor employment data and information in Indonesia. The main objective of WLK is to ensure the company's compliance with labor regulations, protect workers' rights, and provide accurate data for making labor policies. This report must be updated annually.
Private Insurance
For some business actors, they also provide private insurance as one of the employee benefits in their company. Though, BPJS is a good program provided by the government. Private insurance, provides easier procedures and less hassle for healthcare and check-ups. Especially, adding extra coverage for the employees private insurance has various package to choose from. Adding this in the list, provides alternatives for the employees whenever they need to consult or treat their health issues. Some options of private insurance available in Indonesia are AIA, Astra Life, Generali, Allianz, Prudential and so on.
Tax filing and report
Establish an accounting system to maintain proper financial records and ensure accurate reporting. This will facilitate tax compliance and financial management. Indonesian companies are typically required to file monthly and annual financial statements. We recommend to consult a tax consultant who are experts and up to date with the latest regulation.
LKPM report
The LKPM report stands for Laporan Kegiatan Penanaman Modal. This is the investment progress report used by the Ministry of Investment to monitor how the investment progresses in Indonesia. Especially for PMA, LKPM is one of the compliances not to be missed. For large scale businesses, LKPM report must be submitted every three months. For smaller scales it is a report that must be done every six months.
However, please also note that apart from tax report and LKPM report mentioned above, additional reporting may be required by the ministry depending on the business activity. For most low-risk business activities, tax and LKPM report are the sufficient.
VAT registration
Once a company is established, the status is a non-Value Added Tax (VAT) company or in Indonesian term it is called non-PKP. But if your company's annual turnover exceeds the IDR 4,8 threshold, then you may need to register for VAT / PKP with the tax authorities. Consult with a tax professional to determine if your company is required to register for VAT, assist you with the registration process and survey process with the tax office.
HAKI registration
If your company develops intellectual property assets, such as trademarks, patents, or copyrights, consider protecting them through the appropriate registration processes to safeguard your rights.
Company Regulation
Establish a company regulation once you have 10 employees registered under your company. The company regulation must comply with the employment regulation and will be submitted to the Ministry of Manpower to get approval. It is a set of rules and policies to regulate the behavior and actions of employees in carrying out their duties.
Company regulations aim to create a safe, orderly, fair and professional work environment. Once it is approved, the company regulation must be clearly communicated and disseminated to all employees.
It's important to consult with a professional advisor or legal expert to ensure you meet all the necessary requirements and comply with local laws and regulations. The specific steps may vary depending on your business activities and location within Indonesia. Check with our consultants about your business in Indonesia. We can be reached through the details below:
WhatsApp: +62 859-3323-1567
Email: contact@lglbee.com