This article is the fourth in the PDAEXSEA "Indonesian Company Registration Practice" series.

In this article, PDAEXSEA will introduce in detail the registered capital issues that need to be focused on when setting up a foreign-invested limited liability company in Indonesia, including the amount of registered capital, paid-in capital, and the form of capital contribution.

I、 Issues related to registered capital of foreign-invested companies in Indonesia

1. The minimum registered capital is at least 10M Indonesian rupiah (about 4.5 million RMB)

2. Capital-intensive fields (such as banks and mining) may require more funds.

Note: The above-mentioned foreign-invested companies are not determined by the proportion of shares. In other words, whether it is a company established with pure foreign capital or a joint venture with local Indonesian investors, it is called a foreign-invested company, even if there is 1% of foreign shares.

 
II. Issues on paid-in capital of foreign-invested companies in Indonesia

1. The minimum paid-in capital is at least 10M Indonesian rupiah (about 4.5 million RMB)

2. Pay in full within 60 days

3. It can be used as company cost and can be used after being recorded in the account

Note: Currently, the Indonesian government requires 100% paid-in capital, but does not require the capital to be paid in full when registering the company, and there is no capital verification process for the subsequent paid-in capital.
 

III. How to determine paid-in capital

Method 1: Use the shareholder account to remit money to the public account of the Indonesian company, and note the investment amount.

Method 2: Prove that there is indeed paid-in capital through the company's tax payment certificate

If the paid-in capital does not meet the requirements, the Indonesian government will first send a warning letter to the company. If the company still fails to pay in accordance with the regulations after receiving the warning, the penalties will be gradually escalated, including suspension of business activities or revocation of business licenses.

 IV. Choice of contribution form

1. Shareholders can contribute in monetary or non-monetary form

2. Contributions in non-monetary form must be evaluated and valued (contributions in real estate must be announced in one or more newspapers within 14 days after the signing of the company's incorporation deed or the shareholders' meeting makes a resolution on the relevant subscribed capital contribution)

For more information on Southeast Asian investment, please consult Panda Overseas Professional Consultants.

Previous article review:
Two basic issues that must be clarified before investing in Indonesia丨Panda Overseas Indonesia Company Registration Practice
How to register a foreign-invested company in Indonesia丨Panda Overseas Indonesia Company Registration Practice (2)
Several key roles in registering a foreign-invested limited liability company in Indonesia丨Panda Overseas Indonesia Company Registration Practice (3）