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Alternatives to nominee companies in Indonesia

Nominee company in Indonesia

Nominee company service allows you to set up a company in Indonesia under the requirements established for local companies and also to have total control over the company’s assets and earnings through a set of legal agreements.

VIVO ASIA provides a nominee company package using corporate shareholders. It has many advantages, greatest of them are that:

  • it allows you to sign agreements that comply with Indonesian laws

  • these agreements hold up at court

  • minimizes risks compared to using individual nominees

The relations between the nominee shareholder and beneficiaries are commercially governed by a loan agreement where the nominee is purchasing the shares in the company by using a loan provided by the beneficiary.

Since the shares are purchased through a loan, they are pledged back to the beneficiaries for total control.

This gives you peace of mind that you can run a business in a restricted sector without breaking any laws and also have a local partner you can trust and who is governed by the signed agreements.

Our nominee company service is billed annually and can be extended as long as needed by the investor.

Representative office

As an alternative to incorporation, you can also set up a representative office. Representative offices don’t need to comply with capital nor ownership requirements in contrast to PT PMAs.

However, as representative offices’ purpose is to only represent an overseas company, it cannot earn any revenue in Indonesia.

Differences between a nominee company and a PT PMA

Nominee company

Foreign-owned company (PT PMA)

PT (locally owned)

PMA (foreign-owned)

Rp. 51 million

Rp. 2.5 billion

(~US$ 3,800) in case you hire only local employees

(~US$ 190,000)

Rp. 1 billion (~US$ 75,000) in case you also plan to hire foreign employees

Maximum foreign ownership

No foreign ownership allowed

0-100%, depending on your industry

Legal owner in Articles of Association

VIVO ASIA based on loan agreement with you

You

Control over assets

Director of the company (can be you)

Director of the company

Change shareholders whenever necessary

Yes

Yes

Also, see our guide on how to register a company in Indonesia for more information about PT PMAs.

Outsourced operations model

Incorporation may not always be the best or also the fastest way to start doing business in Indonesia. For example, if you wish to test the market first. In that case, an outsourced operations model can help you out.


It allows you to provide services, conduct sales and also to earn revenue, etc. without setting up a legal entity in Indonesia.

Some of the services included in our outsourced service model are, for example:

  • Employer of record

  • Importer of record

  • Payroll management

  • Supplier search


Bringing it all together

For any additional questions regarding nominee companies in Indonesia or setting up a company in Indonesia, contact us via the form below. We will be happy to discuss how we can help your business in Indonesia.

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