Home » Uncategorized » The Important Role the NIL Plays in Company Registration In Indonesia

The Important Role the NIL Plays in Company Registration In Indonesia

The Important Role the NIL Plays in Company Registration In Indonesia

It is okay if you are interested in setting up a company in Indonesia to further expand your business offshore. Indonesia is a country with industrial growth level that escalates significantly in recent years, making it an investment darling among business practitioners all around the world.

With a market so diverse, Indonesia transforms into a healthy pocket of business opportunities that the world now turns its eyes onto. But before you apply for a Company Registration In Indonesia, there is good in consulting the Negative Investment List (NIL) first to avoid complications. And why is that so? Let’s find out.

The NIL is an official document published by the Indonesian Government regarding investment from foreign parties. While the economic climate in Indonesia is very welcoming toward foreign investors, regulations must be implemented to protect the healthy growth of local businesses. Otherwise, foreigners would flock to the country and effectively eradicate even the slightest of chance a local company has to expand.

The NIL regulates what type of business a foreigner can establish in Indonesia and the amount of ownership percentage of a company. Applying for a Company Registration In Indonesia can be conducted according to the guidelines stated by the list.

If your company operates on a field that is excluded by the list (or if the amount of ownership percentage for that business type is too small for you), you can still apply for a Company Registration In Indonesia through a local PT company. A PT is basically a local company. But the ownership belongs to a foreigner(s) while shares are spread across foreign shareholders and local nominee. This local nominee is what makes the company regarded as a local business entity despite it being owned by a non-local. So, as mentioned earlier, you better consult the NIL before making any decisions.

Suka artikel ini? Bantu Share ya.....

Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge