This post is also available in: Indonesia (Indonesian)
Checking Out a Company in Indonesia Is Challenging but Doable
When a potential business partner approaches you with an excellent business deal, you might want to hold it back before inking a deal. It would be best to ensure that this company is genuine and registered with the necessary authorities. At least take some time to find out everything you can about its past and current situation. Thus, it is critical to know how to verify company in Indonesia so that your Indonesian investment yields a win-win situation.
In Indonesia, the company incorporation process comprises several approving ministries. Thus, doing a background check and company verification is not a straightforward process. Suppose a company is a wholly foreign-owned company. In that case, it registers as a PT PMA, and the industry or business segment it operates is allowed by the Indonesia Negative Investment List. If you are a seasoned business entity in Indonesia, you should know the business segments permitted for foreign investments. Otherwise, a locally-owned Indonesia company registers as a PT. Please note that Indonesia does not allow for branch offices under the business incorporation laws by the Ministry of Law and Human Rights. However, there are allowances for foreigners to open up representative offices.
Before you start googling the company you want to verify, you need a list of things to check and verify. By right, you would at least have the company name and its business registration number. The following is a general checklist of what to verify company in Indonesia:
- Company category – whether it claims to in the correct industry or business segment
- Incorporation date – whether its claims of experience matches
- Company Assets – whether it has valuable assets
- Company directors’ details
- Financial statements – one to five years of performance
- Business model
- Competitive advantages
- Strong leadership – whether it has had good management leading the company
- Capital (Paid and Authorised)
As company registration in Indonesia does not happen in one place, obtaining the data above could be challenging. Nevertheless, it is not impossible. Nowadays, people can easily attain data through big data and the internet of things. Indonesia may have strict policies of not allowing public access to official and confidential data such as company verification. But, there are credible organisations that can help you verify company in Indonesia. These companies exist to assist individuals or companies in business matters in Indonesia. Most would be able to provide a comprehensive business solution to company and business matters. The more data you can get about a company, the better-calculated risk you can have before making the critical decision.
We have experts in verifying companies in Indonesia, even if you are based beyond the Asian region. Our worldwide partners can guide you to the right person to ensure you get the right solution to your business queries. As Indonesia is opening up more industries to foreign investments, more local companies may show up your alley to partner with you for a win-win relationship. It is your lawful right to verify company in Indonesia before further investments.