Fair Winds – Set Up a Yacht Charter Business in Indonesia
Be the captain of your future and set up a yacht charter business in Indonesia with 3E Accounting’s quick read.
As Southeast Asia’s most robust emerging economy, Indonesia has experienced a trading surge in the past decade. Its population is young and upcoming with more disposable income to spend on luxury experiences. Any entrepreneur looking to set up a yacht charter business in Indonesia will find a receptive market to tap into.
Helming a Profitable Business Venture
As the largest global archipelago country, more than two-thirds of Indonesia is surrounded by the sea. While marine tourism here is still in its nascent stage, it promises excellent potential and is being actively encouraged by the government.
However, it should be noted that stringent regulations do apply in the shipping industry, which includes yachting. Recent changes in the laws – made to protect and encourage domestic trade – impacts the legal structure of businesses. Primarily, the cabotage policy requires all local shipping services to be carried out only by Indonesia-based shipping companies.
Share allocation as stipulated by Indonesian shipping laws should also be kept in mind. Foreign companies are required to partner with a local holding the majority share, while, Southeast Asian investors can own 70% of shares.
To get started, incorporate your company with the Trade Register or Company Registry. The most suitable type of company for yacht charter is one with legal entity status such as:
- Locally-owned Local Limited Liability Company (Perseroan Terbatas or PT).
- Foreign-owned Limited Liability Company (Perseroan Terbatas Penanaman Modal Asing or PT PMA) and needs a Permanent Business License from the Capital Investment Coordinating Board (BKPM).
Registration and licensing are done via the Online Single Submission (OSS) system. OSS will issue a Business Identification Number (NIB) and a license to conduct business legally. You will also need to get tax registration done and acquire a tax registration number. This number will be required for vessel licensing.
Generally, small-scale vessels are not registered or licensed. However, this is not encouraged as it will have a negative impact on your business. Vessel registrations are the purview of the Directorate General of Sea Transportation (DGST) and the Biro Klasifikasi Indonesia (BKI). Some of the approvals needed may include:
- Sea Transportation Business License (SIUPAL)
- General Vessel Certification
- Vessel Ownership Certification
- Ship’s Safety Assessment Report
- Pollution Prevention Certificate
- Ship Radio Station Certificate
All vessels and ships also need a Measurement Certificate registered with the Vessel’s Registrar under the Ministry of Transportation. This will be specific to applicable seaports. General requirements for registration include a minimum gross tonnage of seven tonnes. Upon successful registration, you will be granted a Deed of Registry.
Set Your Business Compass to Success
You don’t have to reef your sails to set up a yacht charter business in Indonesia. The regulations and procedures may not be plain sailing, but professionals such as 3E Accounting are on hand to help. Whatever your business needs are, 3E Accounting has the solutions to accommodate it all.
Contact 3E Accounting today to speak to professionals with industry best practices and experience.