the comparison between local partner selection and local nominee
TRANSCRIPT
Comparison between Local Partner Selection and Local NomineeJakarta, January 2017
2For further info, visit: www.cekindo.com.email to: [email protected], phone: 021-80660999
The Overview
Doing business in Indonesia is both lucrative and challenging. In order to take part in Indonesia’s vast and emerging market, you can establish a company depends on your business needs and your process business. These are the three type options for establishing a company: Local Company, Foreign Owned Company, Representative Office.
Foreign investor can choose what kind of type they want. There is limitation for foreign ownership for their business area which is listed in Negative Investment List. The only available option is establish a local company. And in this type of company, foreign investors need to create nominee agreement, either local partner selection and local nominee.
3
Differentiation Local Partner and Local Nominee
For further info, visit: www.cekindo.com.email to: [email protected], phone: 021-80660999
The core differences between selecting local partners and establishing local nominee were in agreement, There is still two in more details in order to have better pictures before deciding forward to choose either local partner or local nominee, need to classify first the differentiation between the two in several sub-chapters as follow:
4
Requirements of Local Partner Selection
For further info, visit: www.cekindo.com.email to: [email protected], phone: 021-80660999
If a foreign investor choose to have a local partner, there are some requirements to meet by the local partner. And the local partner must have:- Import License. A different license is needed for a different product. If needed, consult firs with the consultancy or legal firm to confirm the appropriateness of local partner’s import license. - Warehouse. It is also compulsory for the local partner to own a warehouse in the local area of Indonesia.- Business license in Retail Commerce in Food and Beverage. According to the Negative investment list number 4722, the local partner for food and beverage products should have a special business license.
5
Requirements of Local Nominee
For further info, visit: www.cekindo.com.email to: [email protected], phone: 021-80660999
If a foreign investor choose to have a local nominee there are some requirements to meet by the local nominee. the requirements are as follow:- There are 2 shareholders, consisting of 1 local director and 1 commissioner.- It must be owned 100% by native Indonesians.- The minimum amount of capital owned by the company is as follow:
Small Company: IDR 50 million to IDR 500 million;Medium Company: IDR 500 million to IDR 10 billion; andLarge Company: more than IDR 10 billion
- The company must have an operational office and a warehouse for a distributor company.
6
Advantages and Disadvantage
For further info, visit: www.cekindo.com.email to: [email protected], phone: 021-80660999
Beside the requirements for Local Partner selection and Local nominee, both of them have different advantages and
disadvantages
HOW CEKINDO CAN HELP YOU
Cekindo offers the services and packages to deal with those two kinds of companies in a safe and lawful practice. To know more detail on what kind of company you should
establish related to your specific needs, do not hesitate to leave your comment..We will fully assist you in completing all the requirements, until it’s legally
registered. Send your email directly to [email protected] or contact us now and we will share you the detail steps and cost to register your medical devices in Indonesia.
7
Advantages and Disadvantages of Local Partner Selection
For further info, visit: www.cekindo.com.email to: [email protected], phone: 021-80660999
The advantages of choosing a local partner are:- Need lower amount of investment to establish company compare to a local nominee.- Need lower operational cost.- Local partner might have better understanding on Indonesian bureaucracy, business climates, and most importantly, local market.
The disadvantages of choosing a local partner are:- Have less freedom to control business activities, especially in the marketing and distribution sectors because the local partner will likely responsible for those activities.- It is possible that there is not any local partner who are interested to participate in business.- Since the agreement bonds company for only limited period of time (between 3-5 years) you have lack of flexibility to run and expand business.
8
Advantages and Disadvantages of Local Nominee
For further info, visit: www.cekindo.com.email to: [email protected], phone: 021-80660999
The advantages of establishing a local nominee are:- Foreign investor will have full freedom to control the direction of company, including distribution and marketing.- It is relatively easier and quicker to set up business because it is categorized as PT PMDN (Local Company) which is also owned by native Indonesians.- The company will have relatively stronger presence on the market as it is considered as a National Company.
The disadvantages of establishing a local nominee are:- Need to invest more, depending on the size of company to establish.- Dividend will be taxed.- As a foreign investor, need to pay for the local reliable nominee agreement.- All of business activities should be reported to the shareholders.
9
Time Frame Local Partner Selection andLocal Nominee
9For further info, visit: www.cekindo.com.email to: [email protected], phone: 021-80660999
Local Partner Selection - Need up to 2 months to find and choose the local partner to work with. May take longer time, especially when there are not many local partners interested to collaborate with.- Need another 6 months to register products.- In total, need approximately 8 months to accomplish all the requirements in selecting the local partner.
Establishing a Local Nominee- Need 2 months to set up local company.- Need another 1 month to create an import license.- Then, product registration will be 6 months to complete.- In total, need approximately 9 months to establish a local nominee
10
References:• http://www.cekindo.com/services/local-partner-selection-in-indonesia.html• http://www.cekindo.com/services/set-up-a-local-nominee-company-in-indonesia-html• http://www.cekindo.com/comparison-of-foreign-owned-company-local-company-and-repres
entative-office-in-indonesia.html• http://www.cekindo.com/setting-up-local-pt-company.html• http://www.cekindo.com/local-nominee-in-indonesia-the-safe-practice-how-to-establish-you
r-company-in-indonesia.html• http://www.cekindo.com/local-nominee-in-indonesia-the-safe-practice-how-to-establish-you
r-company-in-indonesia.html
11
Our VisionTo be leading consulting firm of business services to clients expanding and operating in Indonesia.
Our Mission To provide full-range of market-entry and corporate services to enable our clients to focus on their core business and activities in Indonesia and beyond.
PT. Cekindo Bisnis Grup is a leading consulting firm of Market-Entry and Corporate secretarial services to clients expanding and operating in Indonesia and further to Southeast Asia.
Our ValuesClient-focusedExcellence performanceKnowledgable locallyIntegrity moralNormative operations standardsDelivered on-timeOne stop services provider
Company Profile
12
Our main services:
Business Set Up
Business Process
Outsourcing
Local Representation
Company Registration
License & Product Registration
Market Research & Analysis
Local Partner Selection
Trade Mission Land & Property
Ownership
Recruitment & HR Establishment
Payroll Management
Accounting & Tax Reporting
Visa & Work Permit
Mystery Shopping
Local Distributor & Partner
Buying Agent Office Space
Cekindo Services
13
Senior AdvisorProf. Dr. Rahardi Ramelan
Relevant Experience
Mr. Ramelan is currently Senior Advisor at PT Cekindo Bisnis Grup. Hi is a Research Professor at the Agency for the
Assessment and Application of Technology. The honorary degree of Doctor Honoris Causa from Monash
University, Australia and Northeastern University Boston.
Minister of State for Research and Technology of the Republic of Indonesia and Chairman of the Agency for Assessment and Application of Technology (BPPT) in the Seventh Development Cabinet of the Republic of Indonesia.
Minister of Industry and Trade in the Development Reforms Cabinet of the Republic of Indonesia and Chairman of National Logistic Agency.
Deputy Chairman for Industrial Analysis and Vice Chairman of the National Development Planning Agency of the Republic of Indonesia
Several management positions and responsibilities related to Indonesian Aviation industry, the Weapon industry.
Prof. Dr. Rahardi Ramelan
Profile Overview
14
Principal ConsultantMichal Wasserbauer
Michal is currently Principal Consultant at PT Cekindo Bisnis Grup. He has more than 5 year‘s experience in the
Corporate Market research, Strategy and Evaluation Expansions, Business Consultancy, and Preparation of
Business Feasibility Studies. He has worked for various industries, namely Grocery and Marchandise Retail,
Energy, Medical Device, Heavy and Automation Industries.
+6281282300584 | [email protected]
Michal Wasserbauer
Market opportunities valuation Investment analysisPerformance management Feasibility studies
Strategy planningStakeholder managementMarketing consultancy
Profile Overview
Relevant Experience
Relevant Skills
Multinational grocery and general merchandise retailer: Capital Investment Appraisals
World‘s largest student and recent graduates-run organisation: Financial Controller
International consultation company: Market Expansion Consultant
15
Principal ConsultantNurmia Agustina
Nurmia is currently Principal Consultant at PT Cekindo Bisnis Grup. She has wide experience in the areas of Business
Development, Legal Corporate Restrictions, Business Consulting, Project Management, Market Development &
Entry Strategy, Sales & Distribution, Management Strategy, Recruitment, Visa & Work Permit, and Change
Management. She has worked for various industries, namely Energy & Resources, Telecommunication, Retail,
Pharmaceutical & Medical, Financing, Non-Profit, IT and Heavy Industries.
+628119691987 | [email protected]
International Management company: Management & Legal consultant
Chamber of Commercial: Head of Business Processing Section
Nurmia Dwi Agustina
Corporate lawOutsourcing processesCompany formationAcquisitionsProject ManagementCompetitive Analysis
Business PlanningRisk ManagementTalent Management StrategyRecruitmentVisa & Work PermitChange Management
Relevant Experience
Relevant Skills
Profile Overview
16
Selected Clients
PT. Cekindo Bisnis Grup
Grand Slipi Tower 9th floorJl. Letjend. S. Parman Kav 22-24Jakarta - 11480Indonesia
[email protected] +6221 80660900