Foreign Company Incorporation
Business Set Up Options in Indonesia
Representative Office (RO)
RO is commonly considered a branch of an overseas parent company, commonly the first step in the Indonesian market, and a precursor to the establishment of PT PMA. It is set up primarily for marketing, market research, or as buying or selling agents. This entity has a very lenient corporate structure, with no requirement of a shareholder or a director; just a chief executive is sufficient.
Local Company (PT)
In Indonesia, this is the most common kind of legal entity. Despite the fact that a local company is primarily meant for Indonesian nationals, a foreign business or entrepreneur can nevertheless establish one through a local nominee arrangement because this type of entity only permits 100 percent local ownership. The paid-in capital of a local company is significantly lower than that of a foreign-owned company.
Foreign Owned Company (PT PMA)
This is a legal entity that can be fully owned by foreigners. However, the maximum foreign ownership is determined by the business sector and business activities. Some business activities are fully closed to non-domestic investors, and some are partially limited. For businesses partially opened for foreign investments, foreign ownership is allowed between 49%-95%.
Business Set Up Options in Malaysia
Sendirian Berhad (SDN BHD) (Private Limited Company)/ Berhad (BHD) (Public Limited Company)
These companies are limited by shares, which means they must have a minimum of one shareholder, one director, and one company secretary. The fundamental distinction between SDN BHD and BHD is that the former can only have 50 shareholders and its shares are not open to the public, unlike the latter.
Do note that there is also the option to incorporate a business unlimited in Malaysia; the process and paperwork are the same as those for a company limited by shares.
Sole Proprietorship / Partnership
You can set up a business as a sole proprietorship if you are the sole owner of the enterprise. You can form a partnership if there are two or more owners of the company, but not more than 20. The registration must be completed (for one to five years) within 30 days of the starting of the business.
Limited Liability Partnership (LLP)
This is an alternative business vehicle – formed by professionals such as Lawyers, Chartered Accountants, and Company Secretaries. Its key characteristics include flexibility in terms of formation, maintenance, and termination; protection of limited liability to its partners (meaning any debts are borne by the assets of the LLP and not that of its partners); and legal status of a body corporate capable of suing and being sued.
Business Set Up Options in Hong Kong
Branch Office
This is when a parent company that was formed outside of Hong Kong wishes to set up a company in Hong Kong to conduct business. An entity of this type may register as a Registered Non-Hong Kong Company in Hong Kong, and its branch office is not considered to be a different legal entity. Such an office can only leverage funds off the credit ratings of the parent company.
Representative Office
It is useful for companies incorporated outside Hong Kong, looking to explore the business scene in the region before making a larger investment. Such offices cannot engage in profit-making activities and can perform only certain functions, e.g. back office or administration.
Private Companies Limited by Shares
This is the most common type of company incorporated in Hong Kong, and it can enjoy the benefits of the Closer Economic Partnership Arrangement (CEPA), a free trade agreement with Mainland China.
Looking to Set Up An Offshore Company?
We provide comprehensive support and guides if you are looking to set up offshore companies in countries such as British Virgin Islands (BVI), Cayman Islands and Seychelles.