IndonesiaSource image: / CC by 2.0
Indonesia which is an ASEAN member country lies on the crosslink of two continents, Asia and Australia, as well as two oceans, the Indian Ocean and Pacific Ocean. Indonesia is the fourth most populous nation in the world after China, India and the United States. Over two thirds of the population resides in Java, the center of the country’s economic and political power. The Indonesian national motto “Unity in Diversity” points to one of the greatest attractions of Indonesia. There are some 300 ethnic groups, a result of both the country’s unique geography and history. Many Indonesians may see themselves first by their ethnic and cultural group and secondly as Indonesians. The glue that binds the people together is the usage of the Bahasa Indonesia, the national language, and Pancasila, the national philosophy, which stresses the doctrine of unity and universal justice for all Indonesians.
Indonesia is also the third fastest growing economy in Asia and the largest economy in Southeast Asia. With stable politics and strong economy, Indonesia is known to be the emerging power house in Asia. Indonesia’s economic policies are on a firm footing, so are its measures to attract foreign investment.
Indonesia, being a market oriented open economy, with free foreign currency exchange regime, its government realizes that investment is one fundamental factor in accelerating economy; hence they make serious efforts on fixing investment procedures to stimulate the more advantageous investment climate.
- Most lines of businesses are open for foreigners.
- Foreigners can hold up to 100% shares in many lines of businesses.
- There is no requirement for a local director or shareholder, which means all directors can be foreigners
- There is no requirement for a company secretary
- Private company with turnover of less than USD 5 million is exempt from audit
- Equal treatment for domestic and foreign investors.
- Indonesia company formation permits entrepreneurs access to a network of double taxation treaties with countries including Australia, France, Germany, Singapore, South Africa, the US and the UK.
- The Indonesian economy is ranked as the 46th-most competitive economy in the world, according to the World Economic Forum’s Global
- An Indonesian company can be 100% foreign-owned and controlled.
- An Indonesia Representative Office can also be 100% foreign-owned and controlled, but is not permitted to make direct sales in Indonesia.
- Mandatory divestment is no longer applicable and the business license obtained will remain valid as long as the company continues in operations.
- Establishing a company in Indonesia is a highly bureaucratic process, but nonetheless a process that has become relatively easier over the past few years. The first step in this rather complex process is the obtaining of an Investment Approval from the Investment Coordination Board. This approval process is nowadays relatively quick, and can be completed in as little as 14 days in some investment board offices.
New licensing regulations for Trusts & Service Providers in Hong Kong
As per new regulations, all Hong Kong businesses providing Trustee Services, including Corporate Service Providers will not be able to operate without a valid trading license after March the 1st 2018. The new scheme is designed to better regulate individuals carrying out services within the financial sphere in Hong Kong and will be overseen and administered by the Hong Kong Companies Registry.
The terms of Hong Kong's new register of significant controllers and what it means for companies
As per new legislation, from March 1st 2018, every company incorporated in Hong Kong will be required to keep and maintain a register of all persons who have significant control of the company. The record must be updated as required and kept at the registered company address, even if there are no persons of significant control.
The pros & cons of European Passport-by-Investment schemes
In a bid to rebuild the dwindling economy in Cyprus shortly after the financial crisis four years ago, the government launched a passport-by-investment program to temp wealthy foreigners with citizenship in exchange for an investment of no less than €2 million into the Cyprus economy.
Using the Cyprus Non-Dom scheme for beneficial tax planning
In an attempt to improve and simplify the Cyprus tax system as well as to remain a highly compliant and attractive jurisdiction, the introduction of the non-domicile (shortened to Non-Dom) scheme aims to give Cyprus a competitive edge over other jurisdictions.
How are Cyprus banks handling the island's high rate of NPLs? Can more be done to combat them?
It is no secret that the Cyprus banking sector is struggling with the overwhelming level of Non-Performing Loans (NPLs), no matter the efforts exerted by the main banks in Cyprus by following conventional banking models to balance their profit/loss reports, NPLs remain to be the proverbial hole in the bucket.
Income tax exemptions for expats living in Cyprus: what are your options?
Situated in the Eastern Mediterranean, the Republic of Cyprus boasts a strategic geographical location at the hub of three continents; Europe, Asia and Africa and a pleasant sunny climate year round.
The UK Persons of Significant Control Register & its impact on companies
The requirement to maintain a register of people with significant influence or control, more commonly known as the PSC register was introduced to mandate all unlisted companies in the UK, including LLPs and dormant companies to maintain a register identifying those with significant control over a company.
Cyprus implements the Hague Convention, legally recognising Trusts as a type of Equitable Law
This year, the Republic of Cyprus ratified The Hague Conventions’ definition of the legislation applicable to trusts and furthering the regulations surrounding their recognition. Cyprus common law now recognises trusts as a unique legal institution under equity.